Buying vs Leasing Hondas
When it comes to buying vs leasing Hondas, the options can be overwhelming. Make a more informed decision with help from the information below. We hope you find it informative and useful.
When you buy a car, whether used or new, you pay for the entire cost of the vehicle. When you lease a new or used car, you pay only a part of the cost, that is the part of the vehicle you use during the time you are driving it.
Who Owns It
The car is yours, whether you are paying for it in cash or financing it through monthly payments. When you choose to finance it, you'll be expected to meet the lender's required obligation, like a set down payment and monthly payments made on time. If you don't meet the requirements, the dealer has the right to repossess it.
If you're financing it, the bank is likely to require a down payment. You have the option to trade in another vehicle and use the equity, if any, toward your down payment. The down payment amount is usually based on lender requirements and your credit score.
How well you maintain your vehicle will affect its worth in the future and help determine what you can sell it for. Be smart, protect your investment with regularly scheduled maintenance by a factory-authorized facility.
End of Payments
As soon as you've paid off what you owe on your contract, the vehicle is 100% yours. The lender institution sends a Lien Release, which is proof that the vehicle is completely paid off and all yours.
Who Owns It
You are not the owner of the car when you lease. Although you are paying for the use of the vehicle, the finance institution through which you leased it actually owns it. This is why your monthly payment is usually less with a lease than if you were to buy the car.
Leases do not usually require any type of down payment. In general, you are only expected to pay the first month's payment, security deposit, acquisition fee and other fees and taxes. As with a purchase, you can always pay more up front to lower your monthly payments.
Most leases are arranged so that you don't own the vehicle at the end, therefore you don't end up selling it. That's the financial institution's job. Be aware that there may be mileage limits and wear and tear guidelines that if exceeded, will cost extra money when you turn your vehicle back in.
End of Payments
Most people return a vehicle when the lease term is up. Some drivers prefer to purchase the vehicle during or at the end of the lease term. Others choose to trade in the vehicle before their lease is over. Just ask about all the options before signing the paperwork and we'll have your lease custom tailored for you.
Best Cars to Lease
When choosing a lease car, look for the one that will have the best book value after the term of the lease. They depreciate less, so you pay less. Review the lease ratings to see which cars retain their value.