Leasing vs Buying
Comparing Leasing a New Honda vs Buying a New Honda
With Norm Reeves Honda Superstore North Richland Hills Serving Fort Worth, Texas
- With the primary consideration being depreciation, monthly payments are lower and down payments are reduced or not required.
- There’s no need to haggle for a fair price when you’re ready to move onto your next new vehicle. Simply drop off the leased car and transition easily to another new Honda.
- Instead of worrying about the trade-in value of your vehicle and how it impacts the next vehicle you can afford, you can completely bypass the trading-in process.
- The states sales tax is a lower percentage for leases than it is for loans.
- Auto leasing is an excellent way to build good credit while enjoying the latest features on a new model every few years.
- Once the loan is paid off, you will have no other expenses except routine maintenance and any repairs that are needed.
- You can make modifications to the vehicle to suit you best without worrying about breaking the lease.
- The value of your owned car can be put towards money off your next car, potentially saving you thousands.
- You can build equity with a car loan if your monthly payments outpace the depreciation of the vehicle.
- You can pay off the loan early without a penalty, allowing you to increase your credit score and save money on interest.
- You don’t get any of the advantages of ownership.
- Leases come with annual mileage limitations, and if you go over, you pay a fee.
- While leases are more affordable in the short term, they tend to add up quickly and cost more than a comparable loan.
- There are fees for excessive wear and tear that can be a costly surprise when you turn in the leased vehicle.
- There are fees for ending your lease early.
- Higher down payments can be challenging to afford.
- Loans have higher monthly payments than leases, making your budget tighter.
- Once the warranty is up, you will have to pay full cost for repairs and maintenance.
- Trading in or selling your vehicle can be a time-consuming, stressful process that may not be as fruitful as you hoped.
- The depreciation of an owned car can be low enough that selling it would only net you a small amount.