Buying vs. Leasing Guide
Buying vs. Leasing Guide
| Buying | Leasing | |
|---|---|---|
| Money due at signing | Typically, you will be expected to pay at least a down payment (typically around 20% of the total price), taxes, registration and other fees. Buying is more expensive in the short term. | Usually you will be expected to pay for the first month's payment, a refundable security deposit, taxes, registration and other fees. Some leases may provide the option for a down payment. Leasing is cheaper than buying in the short term. |
| Monthly payments | Loan payments will typically be higher than lease payments, since you're paying off the entire price of the vehicle during your loan period. | Lease payments are usually lower than loan payments, because you are mainly paying for the depreciation of the vehicle. |
| End of term | At the end of the loan term (typically 4-5 years), you will own your vehicle, and can leverage that equity into a new loan or enjoy life debt-free. | At the end of the lease (typically two to four years), you'll have the option to either pay for your vehicle or start a new lease. |
| Personalization | The vehicle is yours to modify or customize as you like. You can add aftermarket parts, bumper stickers, a new paint job, or any modification that you see fit. | Any modifications or custom parts you add will need to be removed before you return the car, because the lessor wants the car as close to original condition as possible in order to make it easy to resell. |
| When it's time to upgrade | You'll have to deal with selling or trading in your car on your own. | You can return the vehicle at end of your lease, pay any remaining costs, and you're free to upgrade to a newer model or different vehicle entirely. |
| Long-term value | Almost all vehicles depreciate over time, but you own the cash value of your car. | For leased vehicles, depreciation doesn't impact you directly. However, leased vehicles do not provide you any long term value in the form of equity. |
Buying vs Leasing Guide at Neil Huffman Honda
When debating whether buying or leasing a new Honda car or SUV is right for you, our finance specialists are here to help. The decision of whether to buy or lease a new Honda can be difficult to navigate, and depends on a number of factors. Whether you're looking for luxury on your commute or a car you can drive for years to come, Neil Huffman Honda has the resources to help. Plus our signature 7 Day Like it or Exchange it Promise means you'll never have doubts about your new Honda. Stop by for a test drive today!
I hereby consent to receive autodialed calls, pre-recorded telemarketing calls, and/or text messages relative to sales and service matters, from Neil Huffman Honda at the telephone number listed above. This consent includes my wireless number, if applicable and I understand that message and data rates may apply. Consent to these terms is not a condition of purchase. Text STOP to opt-out.