Why Lease an INFINITI in Jackson, MS

Car buying can seem like a mystery, especially when the discussion turns to paying for your new ride. You have several options, but you also have to wade through terms and conditions that can leave you feeling confused. One of the debates most prevalent in the world of car buying: whether it is a better deal financially to lease or buy a new vehicle. People tend to fall into one camp or another, and there is generally no middle ground.

Is there a single answer? It actually depends on your own specific financial situation and the time frame you plan on owning the car. To help you understand the choice in real terms, your team at Herrin-Gear INFINITI has put together a sample scenario using the  2021 INFINITI QX50 Luxe Crossover.

2021 INFINITI QX50 Luxe Crossover

The INFINITI Luxe Crossover is a headliner in the crossover SUV category, offering luxury, performance, and value in its interior and exterior packages. For example, you will love the heated front bucket seats with 2-way driver-seat power lumbar adjustability, as well as the 60-40 folding rear seats and built-in HomeLink garage door opener. But you will also appreciate the 2.0-liter turbo continuously variable transmission, an INFINITI innovation.

The 268 horsepower engine will get you an EPA-estimated 23 miles per gallon city, 29 miles per gallon highway, which is one of the highest EPA ratings in the INFINITI line. Take a look at the full set of specifications in our versatile, fuel-efficient SUV with innovative features and roomy interiors.

Buying an INFINITI QX50 Luxe Crossover Outright

Let’s set the terms of our example. The QX50 has a current MSRP of $43,235. Just for ease of comparison, let’s assume that’s the price you agree upon with your friendly Herrin-Gear sales expert.

The first question our sales team will have is: how much money do you intend to contribute as a down payment? Once again, just for the sake of our assumption, let’s say the down payment is $5,000, bringing the cost of the vehicle down to $38,235.

The U.S. average interest rate for borrowers with the best credit scores stood at 4.15 percent for a 60-month new car loan in April 2021, according to Bankrate.com. So we will use that as our hypothetical financing example. Just for clarity, we will also assume that you do not have a trade-in to value.

Under these assumptions, someone who chooses to finance a car and own it outright would have the following payments:

• 60-month loan at 4.15 percent: $708
• 48-month loan at 4.15 percent: $868
• 36 month loan at 4.15 percent: $1,134

Now let’s take a look at the same scenario for someone who wishes to lease the car.

Leasing an INFINITI QX50 Luxe Crossover 

Lease terms on vehicles are typically a maximum of 36 months. You will also be limited to 12,000 miles a year, so keep that in mind as a significant difference between the two comparisons. With a lease, you also have to factor in a usage/sales tax. Bankrate models 7% currently, so we will keep that in our example.

Keeping all other factors the same, including the down payment of $5,000 and the interest rate of 4.15 percent, the lease of the INFINITI QX50 Luxe Crossover would come in at $585.94 per month, according to the team at BankRate.com.

Monthly Payments

With those two figures in mind, let’s do some calculating. A person who finances the car over 60 months would pay $708 a month compared to $585.84 a month for a three-year lease. That’s a difference of about $122 per month or almost $1,500 a year.

What Does It Mean

To some, it looks like an easy decision. You get the same car for $1,500 less each year, which is money that could easily go toward gas payments or insurance. And there are other benefits for leasing in this scenario. According to Edmunds.com, the pluses of leasing, in addition to lower monthly payments, include:

• You’ll save on repair costs. In a lease, you will be covered by the vehicle’s factory warranty.
• You’re set up to transition into a new car after three years.
• You don’t have to negotiate for the price you want for your trade-in.
• Sales tax costs are lower.

But there are leasing drawbacks, too. The most obvious to keep in mind is that mileage is limited on the lease. This puts a damper on any plans for coast-to-coast driving. If you go over 36,000 miles in our scenario before the end of the lease, you are looking at a hefty per mile charge of 25 cents a mile. For that price, you might as well call a taxi. Other drawbacks, according to Edmunds:

• You don’t own the car. Unless you purchase it at the end of your lease, you have to make a change at the end of three years.
• Leasing contracts may be less familiar to you, making it a challenge to do proper comparisons.
• Calculated over the long term, leasing will cost more than buying a car and keeping ownership for years.
• You could face charges for excessive wear-and-tear.
• Early lease termination can include a hefty, unexpected penalty charge.

Which One Is Right for You?

Everyone’s needs and desires are a little different, so this answer depends on you. You should consider the state of your budget and the need for monthly cash flow, plans for long or persistently frequent travel, and the prospect of changing vehicles every three years.

Wherever you fall on the decision, the team at Herrin-Gear INFINITI can help you understand all the variables and make the choice that’s best for you. Our sales experts will walk you through the numbers and answer any questions you might have. And whether you buy or lease, know that you will be an important part of the Herrin-Gear INFINITI family.

Call us with your questions or to set up an appointment for a consultation or a test drive, or reach us online. You will be glad you did.