Buying Vs. Leasing in Kansas City, MO

Buy vs. Lease a New Vehicle in Kansas City, MO

Purchasing or leasing a vehicle is a crucial financial choice that demands careful deliberation. Both alternatives have their own merits and drawbacks, and it is important to assess them thoroughly in order to make an informed decision. At Reiselman Nissan in Kansas City, MO, we are delighted to assist you in navigating the choice between buying and leasing.

The Differences Between Buying and Leasing a New Car

There are key differences in buying a vehicle or leasing one that consumers should understand before deciding which option to pursue. There are financial upsides to each choice, and expert sales staff members like the ones here at Reiselman Nissan are available to explain which option is the best for your situation as an individual buyer. Here are some of the major differences between buying and leasing:

Leasing a Vehicle vs. Ownership

Ownership is one of the major distinctions between purchasing and leasing a car. When someone buys a car, they become the owner with the freedom to make modifications, sell it, or trade it in whenever desired. Conversely, leasing is akin to renting. The individual leasing the vehicle has temporary possession and is obligated to return it in good condition to the dealer once the lease term ends.

Cost of Leasing a Vehicle

When it comes to buying versus leasing, one key distinction lies in the cost. Leasing a car often entails lower monthly payments compared to purchasing one. This is because a lease only accounts for the car's depreciation during the lease period. Conversely, buying involves financing the entire vehicle cost, resulting in higher monthly payments than leasing. Nonetheless, various factors influence the overall expenses of owning a car. Buying typically entails a larger down payment and higher interest rates, but these costs gradually decrease as the car depreciates in value. In contrast, leasing generally requires minimal or no down payment, yet additional fees such as security deposits, acquisition fees, or lease-end disposition fees come into play.

Leasing Mileage Restrictions

When leasing a vehicle, the lessee agrees to a set number of miles they are allowed to drive per year, known as mileage restrictions. Exceeding these can result in substantial per-mile fees at the end of the lease term. Common mileage limits range from 10,000 to 15,000 miles per year, but some lease agreements may allow for higher limits at an increased cost. On the other hand, buying a vehicle outright means there are no mileage restrictions. The owner can drive the vehicle as much as they like, but it's worth noting that higher mileage can decrease the vehicle's resale value over time. Therefore, people who drive a lot or plan on taking long road trips may prefer buying a vehicle over leasing, despite the higher upfront cost.

Wear and Tear Restriction of Leasing a Vehicle

Leasing a car comes with the requirement to follow the wear and tear guidelines set out in the lease. These guidelines generally stipulate that the car must be returned in good condition at the end of the lease period. Any damages considered excessive will incur additional fees. On the other hand, when purchasing a car, the owner has the freedom to handle wear and tear as they wish, without the concern of extra charges.

Customization Restriction of Leasing a Vehicle

When leasing a car, it is typically not allowed to make significant modifications or customizations to the vehicle. Lease agreements usually require the car to be returned in its original condition, and any alterations may result in additional fees. On the other hand, when buying a car, the owner has the freedom to customize it as they desire without any restrictions. Additionally, the owner of a purchased car bears the responsibility for its future value. Once the car is fully paid off, the owner can choose to sell or trade it for a newer model and potentially recover some of the investment. In the case of leased cars, the leasing company assumes the responsibility for determining the vehicle's future value. At the end of the lease term, the lessee is obligated to return the car, and the leasing company will determine its future value.

Buy or Lease Your New Car at Reiselman Nissan

Deciding whether to purchase or lease a car is a personal decision that relies on various factors, including budget, lifestyle, and preferences. Buying a car provides complete ownership, flexibility in customization, and no limitations on mileage or wear and tear. On the other hand, leasing offers lower monthly payments, lower down payments, and the advantage of driving a new car every few years without concerns about depreciation. Having a clear understanding of the main distinctions between buying and leasing can assist individuals in making an informed choice. Visit us at Reiselman Nissan in Kansas City, MO, and together let's find the ideal path to a new Nissan vehicle for you.