Deciding between buying or leasing your next new car can be difficult. There are many factors that can influence your decision, including your finances and lifestyle needs. To help you better determine the right financing path for you, keep these advantages and disadvantages of buying and leasing in mind.
Leasing a vehicle is an appealing option for many consumers, especially if you need a ride for less money than purchasing. When you lease a vehicle, instead of paying for the car’s full value, you instead pay the difference between the vehicle’s current price and the value it’s expected to have when you’re finished leasing it. Because of this, your initial down payment and your monthly payments will be smaller than they would be if you were to buy your vehicle.
It's important to note that the lease term typically lasts for two or three years and will also have a specific mileage you have to stay below before you return your vehicle. You also are not allowed to modify your vehicle without incurring a fee.
When you decide to purchase a vehicle, you can own the vehicle in full once you finish paying off your vehicle’s loan. With this loan paid off, you can stop making car payments and continue driving your vehicle for however long you wish. Another advantage of buying your car is that you can customize your vehicle to suit your needs, whether that means adding a new spoiler to your Honda or changing its body color.
Buying a vehicle does tend to be more expensive upfront, though. You will likely need a larger down payment than you would if you were leasing, and you will have higher monthly payments than you would have when leasing.
If you have more questions about leasing or financing a new Honda, contact us at Russell Honda in Sherwood, Arkansas, and our staff will happy to help.
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