Honda Lease vs Buy
So you’ve decided to get a new vehicle. Having a vehicle is practically a necessity in this country, especially if you don’t live in a city where the public transportation options are adequate. When getting a new vehicle, you’ll have two main options: buying or leasing. Buying a vehicle, whether you finance it or not, means that you’ll eventually become the owner of that vehicle, whereas leasing a vehicle means that you have to give the vehicle back after the lease period is up. Basically, a lease is like a long-term rental. Both options have their pros and cons, and you should make your decision according to your financial needs as well as your wants.
Should You Buy or Lease a New Honda?
The following are 5 reasons why you should buy a vehicle, whether it’s outright or via financing options.
- The money you are spending every month is actually going towards the ownership of the vehicle. If you lease a car, you have to give that vehicle back at the end of the lease period and you’ll have nothing to show for the money you’ve put towards the lease.
- You can sell your vehicle if you need the money.
- Because you are the owner, you can modify the vehicle any way you want. This means that you can install a new sound system, install a new GPS system, give your vehicle a new coat of paint, and more. You can’t do any of this if you are leasing your vehicle.
- When you lease a vehicle, you may end up being subject to a number of penalties. For example, if you exceed the maximum mileage of your leases terms, you’ll have to pay a fine.
- Over the long run, buying a vehicle is less expensive than leasing a vehicle. After a certain amount of time, you’ll have paid off your vehicle, whereas if you keep leasing, you’ll eventually eclipse the price of buying a vehicle.
5 reasons why you should consider leasing a vehicle:
While there are many benefits to buying a vehicle, there are several advantages to leasing instead as well. The following are 5 reasons to lease a vehicle instead of buying.
- Leasing will cost less over the short term. This is because monthly payments are lower than it would cost to finance a vehicle and there’s usually a lower down payment as well.
- Leasing allows you to drive nicer and more expensive vehicles than you would be able to afford if you were to buy one outright.
- Leasing lets you drive the newest models you’ll never be stuck with an out of date vehicle since you can lease a different vehicle every couple of years.
- If you lease a vehicle for three years, then the factory warranty on the vehicle will usually cover most repairs. A lot of money can go into repairs when you own a vehicle, so not having to worry about the cost of repairs is a huge advantage.
- Trying to get a new vehicle is nowhere near as big of a hassle if you’re leasing. If you own a vehicle, you’ll have to deal with trying to find a decent trade-in offer or selling the vehicle before you can get a new one. If you’re leasing, you can just wait until the end of your lease period and then choose to lease a different vehicle.
There are a lot of advantages as well as drawbacks to both buying and leasing. This means that you need to carefully consider your needs before you make a choice between the two.