Buying vs. leasing
Buying vs. leasing a vehicle at Fred Haas Nissan
Which option is right for you?
Understanding the differences between buying and leasing can help you make an informed decision about your next vehicle. The finance team at Fred Haas Nissan, serving Tomball, Spring, Houston, The Woodlands, and Cypress, TX, has broken down the pros, cons, and economics of each option below so you can choose the path that fits your budget and lifestyle.
Buying a vehicle
When you buy a new or pre-owned vehicle from Fred Haas Nissan, you're paying the full cost of the car, whether upfront in cash or through financing. Once your payments are complete, the vehicle is yours to keep, sell, or trade in.
Who owns it:
You do. Whether you pay in full or finance through Fred Haas Nissan, ownership is yours once the loan is paid off. If you finance, you'll make monthly payments to your lender until your balance is cleared.
Upfront costs:
Buying typically requires a down payment, which can range from 10% to 20% of the vehicle's MSRP depending on your credit and the lender's terms. You can also use a trade-in to help reduce your total cost.
Future value:
New vehicles depreciate over time, often losing close to 20% of their value in the first year. As the owner, your resale value depends on how well you maintain the car, so regular maintenance at our factory-authorized service center can help protect your investment.
End of payments:
Once your loan is paid off, the vehicle is fully yours with no more monthly payments. You'll receive a lien release from your lender as proof of ownership.
Leasing a vehicle
When you lease through Fred Haas Nissan, you're paying only for the portion of the vehicle's value you use during the lease term, typically 24 to 36 months. This often means lower monthly payments and the flexibility to drive a new vehicle more often.
Who owns it:
The finance institution owns the vehicle, and you're simply paying to use it. Because you're not financing the full cost, lease payments are usually lower than loan payments, and you're protected from unexpected drops in value.
Upfront costs:
Most leases require minimal upfront costs. Typically, you'll pay the first month's payment, a security deposit, and standard fees and taxes. You can choose to make a larger payment upfront to lower your monthly cost.
Future value:
At the end of your lease, you simply return the vehicle, so you don't have to worry about resale value. Just keep an eye on mileage limits, typically 12,000 to 15,000 miles per year, and wear-and-tear guidelines, since exceeding them may result in additional charges.
End of payments:
When your lease ends, you have several options:
- Return the vehicle and lease a new one
- Purchase your leased vehicle for its residual value
- Trade in your lease early toward another model
Our finance specialists at Fred Haas Nissan can help you explore all your end-of-lease options.