Benefits of Leasing

Benefits of Leasing a New Vehicle

Leasing a car has become an increasingly popular option for many drivers due to its benefits compared to traditional car buying. Due to its popularity, we've seen a rise in leasing new Nissan cars, trucks and SUVs here at Benson Nissan in Spartanburg. If you're considering buying or leasing, consider these key advantages to negotiating a lease deal:

 
Lower Monthly Payments: One of the primary benefits of leasing a car is the lower monthly payments. Since you're essentially paying for the vehicle's depreciation over the lease term (typically 24-36 months) rather than the full purchase price, your monthly payments tend to be significantly lower than if you were financing a purchase.
Lower Initial Costs: Leasing often requires less money upfront. While buying a car typically requires a down payment to help decrease monthly payments, leasing usually involves a lower down payment or even no down payment at all. This can make it easier for individuals to drive a new car without a large initial investment.
Driving a Newer Car: Leasing allows you to drive a new car every few years. This means you can benefit from the latest technology, safety features, and fuel efficiency improvements without committing to long-term ownership. Additionally, newer cars often have fewer maintenance issues, which can save you money and hassle.
Warranty Coverage: Most lease terms coincide with the duration of the car's factory warranty, meaning that major repairs are typically covered. This can provide peace of mind and reduce unexpected expenses for maintenance and repairs. You also have the option to buy "Next Level Protection," which covers most basic repairs (stains, small dents) during the lease term.
Flexibility: Leasing provides flexibility in terms of vehicle choice and contract length. At the end of the lease term, you can decide to lease a different vehicle, purchase the one you've been leasing, or simply walk away. This flexibility can be beneficial if your driving needs change over time.

The Typical Car Leasing Process

Leasing a car involves several steps, from selecting a vehicle to signing the lease agreement. Here's a detailed overview of the typical leasing process.

 
1. Research and Selection
Begin by researching different makes and models to find a car that fits your needs and budget. Consider factors like monthly lease payments, mileage limits, and the overall cost of ownership. Dealerships and manufacturer websites often have lease specials and incentives that can help you find a good deal.
2. Test Drive and Inspection
Visit dealerships to test drive your chosen vehicles. This step is crucial to ensure that the car meets your expectations in terms of comfort, performance, and features. While at the dealership, you can also discuss leasing options and get a better understanding of the terms and conditions.
3. Negotiation
Negotiate the lease terms, including the price of the car (known as the capitalized cost), the length of the lease, the annual mileage limit, and the monthly payment. It's also important to discuss any potential fees, such as acquisition fees, disposition fees, and early termination penalties. Don't hesitate to shop around and compare offers from different dealerships.
4. Credit Check and Application
Once you've agreed on the terms, you'll need to complete a credit application. The dealership will run a credit check to determine your eligibility for leasing and to set the interest rate, known as the money factor. A higher credit score typically results in better lease terms.
5. Lease Agreement
Review the lease agreement carefully before signing. Make sure it includes all the negotiated terms and that you understand your responsibilities, such as maintaining the car, carrying the required insurance, and adhering to the mileage limit. Pay special attention to the conditions regarding wear and tear, as you may be charged for excessive damage at the end of the lease.
6. Delivery and Documentation
After signing the lease, you'll need to provide necessary documentation, such as proof of insurance and a valid driver's license. The dealership will then prepare the car for delivery, which includes detailing and ensuring that it's in good condition. Once everything is in order, you'll take possession of the vehicle.
7. Lease Period
During the lease term, it's important to adhere to the mileage limits and maintain the car according to the manufacturer's recommendations. Keep all maintenance records, as you may need to provide them when returning the car.
8. Lease End Options
As the lease term approaches its end, you'll need to decide what to do next. Typically, you have three options:

• Return the Car: Return the leased vehicle to the dealership. You'll need to schedule an inspection to assess any wear and tear and ensure the car is within the agreed mileage limit. Be prepared to pay any additional fees for excess mileage or damage.
  
• Purchase the Car: If you've grown attached to the vehicle, you may have the option to buy it at the end of the lease for a predetermined price, known as the residual value.
  
• Lease a New Car: Many people choose to lease another new car, starting the process over again with a different vehicle.
  

Leasing a car can offer significant benefits, particularly for those who enjoy driving new vehicles with the latest features and prefer lower monthly payments. If you're interested in discussing a new lease deal on your next new Nissan, get in touch with our friendly sales and finance team to schedule your test drive today. We can't wait to work with you!