If you’re in the market for a new car, there’s a lot to consider. One of the first questions you’re bound to ask yourself, though, is whether financing or leasing is a better option for you. To do that, you need to know the pros and cons of each route. And that’s exactly the purpose of this guide.
Rather speak directly with experts? The finance team at Honda of Ocala is on hand and ready to help you get the best deal that fits your needs and wants. Let us help you lease or finance your next vehicle with ease and test drive the latest Honda models today.
When it comes to Honda financing vs leasing, buying an auto loan is typically the first option that shoppers choose. That’s not necessarily because it’s better, but why not own the vehicle you’re paying for?
Tied to that are all kinds of benefits: you can make whatever modifications you’d like to the vehicle, from putting on your child’s award sticker to more significant structural changes. When you lease a vehicle, you can’t do anything like that.
Another feature that vehicle owners enjoy is the ability to drive their car as much as they’d like. If you’re an avid driver or need to drive long distances or frequently for work, leasing might not work. That’s because there are limits placed on how many miles you can drive in a year. When you finance your vehicle, you own it. So, you can drive however much you want without incurring additional expense.
However, what may be the greatest benefit of all is that, once you pay off your vehicle through financing, that’s it. No more monthly payments, no more overhead. It’s yours to keep for life without ever having to pay another monthly payment.
On the other hand, there are certain cons attached to financing as well. It’s not all positive. You pay a higher down payment when financing a car, typically pay more per month, and are responsible for maintenance costs. In addition to this, cars depreciate quickly, so by the time you pay off your vehicle, it’s not worth nearly as much as when you purchased it. This, in turn, can make some consider leasing more preferable.
When it comes to financing vs leasing, leasing is particularly attractive due to the (generally) lower cost. Lower monthly lease payment, lower down payment, and often maintenance covered under lease warranty. That leads to another benefit: if you could only afford trim X through financing, you may just be able to afford that next level up you wanted so much through leasing.
One of the most touted benefits of leasing, though, is that once you’re approved for the leasing program through a particular dealer, you can then trade in (and trade-up) your vehicle every few years for the latest model.
While these benefits, from reduced cost to regularly being able to upgrade to a fresh new model, are attractive, leasing also has its cons. First, the credit score requirements are higher. Then there’s the fact that, at the end of the lease, you don’t own the vehicle. However, leasing programs do typically have a lease-to-own option, so you can choose to purchase your vehicle at the end of its lease.
Another potential negative is that if you continuously lease, you’ll always be paying a monthly car payment. If your goal is to pay off your vehicle, leasing might not be the right fit. In addition to this, there are mileage limits on leases, typically around 12,000 miles per year. If you drive more than that, you can always pay extra for additional miles if you’d still prefer to lease, though.
Taking all the above in, is financing or leasing the right fit for you?
Before deciding on your next vehicle, consider these questions to find out whether financing or leasing is the right path for you to take:
These are just a few of the things to think about before deciding whether financing vs. leasing is better for you.
Whether you decide to finance or lease your next vehicle, let your trusted Honda dealership, Honda of Ocala, help you find the perfect match for you and your life. We’re a proud member of the Morgan Auto Group and strive to deliver a stellar shopping experience from beginning to end.
And if you’re not sure which is the best fit for you, let our helpful sales representatives walk you through what to consider and which might be right for you. So, stop into Honda of Ocala today to discover our current Honda lease offers, see our huge selection of new and certified pre-owned Hondas, from the sleek new Accord to the adventure-ready CR-V, and get the Honda of Ocala advantage.