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.
Buying
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.
Disadvantages
Leasing
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.
Buying
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.
