Financing vs Leasing

To lease or finance, that is the question – for most of us.

Come and chat with one of our friendly finance staff to weigh-out all of your vehicle’s ownership options. Our highly trained and proficient staff will seamlessly gather all of your options and take the time to walk through the possible pros and cons of each option with you. Buying or leasing a new vehicle does not need to be a long, drawn out stressful process. Let our team at River City Nissan guide you through the process in a timely, well communicated manner that revolves around you and your family’s schedule and even bring a little fun into the experience.

Did you know leasing and financing are the most viable options to acquire a new vehicle. In the following discussion of leasing and financing, you will note that leasing requires a great deal more time to explain because of the complex nature of leases and should not be construed as our being biased toward it. We believe the process of leasing or financing your new Nissan should be every bit as pleasurable as driving it.

No matter which you choose, you have some obligations

Whether you choose to lease or finance your new Nissan, you still have the same responsibilities including paying for insurance, maintenance, licensing, and registration. As you would with any financial institution, you are responsible for notifying us of any personal information changes such as your address, bank accounts, and home or office telephone numbers. Additionally, you need to inform us immediately if your car or truck is involved in an accident or has been stolen. You are also responsible for any toll charges, fines, parking tickets, or towing and impound charges.

Finance Options

Flexible financing on your terms

There are five critical elements involved in financing.

  • The purchase price of the vehicle.
  • The amount of your down payment.
  • The amount you must borrow to cover the balance.
  • The length of time you require to pay the vehicle off.
  • The rate of interest charged (annual percentage rate or APR) on the money you have borrowed.

The amount of your monthly payment is determined by this combination of elements.

The first thing you’ll want to do is determine how much you wish to spend each month for your transportation. Once you have that monthly payment set in your mind, with the help of your Nissan Dealership you can determine what vehicle is most likely to fit your budget. If it’s not a fit, there are two ways you can lower your monthly payments.

  • Put a larger amount down on the vehicle at the onset. You’ll lower the amount you need to borrow.
  • Spread the payments out over a longer period of time. We work hard to ensure you are able to afford your monthly payment.

Financing does have its flip side.

Your monthly finance payments can be higher than monthly lease payments because not only do you have to include all sales taxes up front with the purchase price, but you’re also financing 100% of the cost of your new car or truck. That means having to borrow an even larger amount. With leasing, you only pay taxes on the amount of your monthly payment, and only for as long as you lease that vehicle.

Most people who borrow to finance their Nissan tend to keep their vehicle for longer periods of time and your new vehicle warranty may end before you’re ready to replace your Nissan. Not to worry! Nissan offers an Added Security Plan for additional peace of mind.

Leasing Options

Our lease program allows for 16,000 kilometres to 24,000 kilometres of driving per year, subject to vehicle choice. This is based on the average distance Canadians drives in a year. If you’re a high-use driver and expect to exceed the standard lease’s 24,000 kilometre yearly limit, you may find it more economical to buy extra kilometres up front. It’s the difference between paying 8¢/km in the beginning and 10¢/km at maturity.

We offer lease terms between 12 and 60 months. Choose a short-term lease and every one, two or three years, you’ll have the opportunity to enjoy a brand-new Nissan vehicle. If you’re the kind of person who likes change, you can change vehicles more often with a short-term lease.

*On Approved Credit and no matter what your down payment, you are responsible for the first month’s lease payment (plus taxes).

Lease, then buy.

Assuming the vehicle is within the kilometre limit set out in the lease agreement and has no abnormal wear and tear, you can simply return the vehicle to us at lease maturity. Purchasing the vehicle at the end of your lease is another option you may wish to consider.

Leasing. The flip side.

Attractive as leasing may be, there are some considerations you may wish to weigh with regard to your personal requirements. For instance, at the end of your lease you won’t have ownership of the vehicle. It’s like renting an apartment.

Should you drive further than the number of allowable kilometres on your lease, you’ll be responsible for excess kilometre charges if you choose not to buy it at the end of your lease term. You are also responsible for excess wear and tear to the vehicle. That means serious dents, cracked windows, damaged mechanical components, and electrical components must be repaired or replaced when you return the vehicle to us. Ask us how Lease End Protection can save you from these additional charges.