Sherwood Nissan
Sales: 855-380-2200
Service: 780-449-5775
Text Sales: 855-380-2200
Text Service: 780-449-5775
Text Parts: 780-449-5775
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Lease or Finance

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

While paying cash is usually the least expensive way to get yourself into a new set of wheels, most of us are simply not in the happy position of being able to part with such a sizable chunk of cash. Thus, leasing and financing are the most viable alternatives to acquiring a new vehicle. In the following discussion of leasing and financing, you will note that leasing requires a great deal more time and space to explain. That's because of its complex nature and should not be construed as our being biased towards it. We believe that 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, such as paying for its insurance, maintenance, licensing and registration. As you would be 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. And, lease or finance, you must inform us immediately if your car or truck is involved in an accident or has been stolen. Likewise, you are responsible for any toll charges, fines, parking tickets, towing and impound charges.

Financing

Financing is the traditional way to drive a new Nissan. Purchasing your new Nissan can make good economic sense, especially if you intend to keep it for an extended period of time. After all, once it's paid for, you're driving for free; maintenance and repairs excepted. You're also building equity in the car. So when it comes time to purchase a new one, chances are you'll have a valuable trade-in to use as the down payment or a portion of it.

Couple these facts with one of the special finance rates we frequently offer, and buying can be a very attractive choice. Also, some people are simply more comfortable with the sense of security that comes with having ownership to their vehicle. If that's you, we have some great options for you to consider.

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. Plus, the length of time you require to pay the vehicle off and 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. By putting a larger amount down on the vehicle at the onset, you'll lower the amount you need to borrow. Or, you can spread the payments out over a longer period of time. But what's most important is getting what you want at an affordable 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.

Because most people who borrow to finance their Nissan tend to keep them for longer periods of time, your new vehicle warranty may end before you're ready to replace your Nissan. Not to worry, though: Nissan does offer their Added Security Plans for additional peace of mind.

Leasing

Leasing. The increasingly popular way to enjoy a new Nissan.

Since the early '60s, more and more people have discovered the advantages of leasing. Thus, a method of acquiring a new vehicle, once nearly the exclusive domain of businesses, has become popular with the general public. And for many good reasons. But because leasing is relatively new territory for most people, there is a brief learning period required to become familiar with leasing's "ins and outs."

For starters, there are two basic lease types: open-end and closed-end. With an open or closed-end lease, the residual value of the vehicle is established at the onset of your lease. And unlike an open-end lease, a closed-end lease residual value is guaranteed by, and is the responsibility of, the leasing company upon its maturity. With an open-end lease, you (the lessee) assume responsibility for the vehicle's residual value at the end of the lease. For your protection and peace of mind, all NCF leases are closed-end. We assume the risk. So if the market value is higher than the residual value we have established, and you decide to purchase the vehicle, you come out ahead. If the market value is lower, you are protected.

Our lease program allows for 24,000 km of driving per year. That's about what the average Canadian drives in a year. If you're a high-use driver and expect to exceed the standard lease's 24,000 km 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. And that's yet another way your Nissan Dealership can tailor the lease to meet your needs.

More Good News

Assuming similar vehicles, terms and rates, monthly lease payments are less than you'd pay if you financed the entire new car cost. So with a lease, you'll probably end up paying less per month than you budgeted for. Suddenly you can afford to move up to a better-equipped, more stylish model. Very simple. Very smart. Or, thanks to lower monthly payments, a lease can leave you with more pocket money. Now, who couldn't use a few extra dollars at the end of the month?

With a lease, you may not have to make any down payment at all.* Or, you can tailor the down payment to suit your situation. We hasten to add here that making a down payment will lower your monthly lease payments.

We offer lease terms between 12 and 60 months. Choose a short-term lease and every one, two or three years, you'll enjoy the ride in a brand-new Nissan. So if you're the kind of person who likes change, you can change cars more often. And if these changes are in your job or family, a short-term lease lets you switch vehicles sooner to accommodate the change.

*On Approved Credit and no matter what your down payment, you are responsible for the first month's lease payment (plus taxes) as well as a security deposit (normally equal to approximately one month's payment, including taxes). The security deposit and first month's payment are payable when you take delivery of the vehicle.

Save your sanity.

With traditional financing methods, you pay the full tax up front when you buy. Ouch! With a lease, you pay sales taxes on your monthly payments. And you only pay for the duration of your lease term. More money in your pocket. Nice!

You won't have to put up with the hassle of trading or selling the vehicle; ever. Plus, we protect you by assuming the risk if the used car market value of your vehicle turns out to be lower than established. 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. No more waiting by the phone, haggling over the price, or getting it certified.

Lease than Buy.

Purchasing the vehicle at the end of your lease is yet another option you may wish to consider. Because by this time you will not only like the car, you'll also be familiar with it.

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 and damaged mechanical or electrical components, for example, must be repaired when you return it to us. All or part of which will come out of your security deposit.