If you like to drive newer, safer, more reliable vehicles, prefer not to commit to a big down payment every 3-4 years, and also do not travel an enormous amount every year, then a new car lease could be the right choice for you. Leasing is intended for those who would prefer to bypass the annoyance of buying and selling each time they want to upgrade to a new car or truck.
Contrarily, if you like long term relationships with a larger sense of commitment and ownership, then buying should be what’s right for you. Car-buying is typically best for shoppers who will not mind driving the same car or truck for over five years or even until it is no longer suitable for the highway.
Being aware of the pros, cons, and overall benefits of buying vs leasing a car or truck is imperative. Be sure to acknowledge factors such as vehicle ownership, monthly payments, repair costs, and potential savings when calculating the best new car financing type for you.
When weighing the value of vehicle financing, new car, truck, or SUV ownership certainly comes with many well-known advantages, most associated with outright ownership of the car, truck or SUV. You may not be aware, however, there are also some great upsides of leasing, as well. It’s essential to consider all financial aspects including term length, down payment, monthly payments, buyout payments, interest rate, depreciation, and maintenance & repair costs, before making a decision. A meticulous study of your current financial situation, future needs, and your preference for commitment, will likely ensure that you make the optimal choice between leasing and buying a new car.
Car lease payments are often less expensive compared to car financing and loan payments as the normal lease layout is more-or-less renting with the option to buy out near the final payment of your lease term. Just consider when leasing that you are going to need a good credit score, and will be required to carry comprehensive and collision insurance, although the same can be said for the lowest rate auto loans. Though it may likely increase your monthly payments, it’s also best to select a model with the features you need or want, as personal satisfaction is often priceless.
Auto leasing often includes regular vehicle maintenance & repair. It’s important to keep this in mind when projecting monthly costs of leasing vs ownership. No matter which make and model you buy, mechanic bills are an unpredictable cost that can rapidly add up. And for those of us who aren’t certified auto mechanics with a hydraulic jack and full toolset in the garage, leasing might be the best option for peace of mind.
In general, a new car lease saves money in the short term with lower monthly payments, while buying earns you a long term investment, meaning full ownership of the value of the car or truck at the time it is traded, sold, or paid-off. For best value on a lease, avoid lease return fees for terminating the vehicle lease early, going over mileage, or putting on excessive wear and tear. For maximum investment on a purchased/financed vehicle, you can pay it off quickly and also avoid excessive wear and mileage.
|Maintenance & Repair Costs||Typically Included||Not Included|
|Down Payment||Smaller Down Payment||Larger Down Payment|
|Monthly Payment||Smaller Monthly Payments||Larger Monthly Payments|
|Ownership||No Ownership||Pride of Ownership|
|Finance Term||Approx. 2-4 Years||Approx. 3-6 Years|
|Savings/Investment||Short Term Savings||Long Term Investment|
|Vehicle Customization||Not Available||Available|
|Pre-Owned Vehicles||Not Available||Available|
|Poor Credit Financing||Not Available||Available|
Gallatin Honda knows that choosing the right Honda car and financing option is never easy. Our team of experienced Honda lease and finance specialist are on hand to help you make the right choice. Visit us online, by phone, or in-person at our dealership location near Nashville, TN. We look forward to serving you.
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