Lease Vs Purchase
What is the difference between leasing & purchasing a New Honda? It’s a question that most car shoppers ask at some point. For many people, an automobile lease is a feasible alternative to purchasing the vehicle. The main difference between the two is that when you lease a vehicle, you’ll only pay for the depreciation that is expected to occur while you have it. Being that this is always a lower amount than the full purchase price of the vehicle, your monthly payments with a lease will often be much less than if you would have financed it. Depending on your monthly budget, individual needs and driving patterns, leasing can be a very affordable financing option. Majority of the time, customers who lease prefer to drive a new car every 2-3 years and enjoy making lower monthly payments where as customers who finance tend to drive their vehicles for atleast 5-10 year and also enjoy not having mileage limitations!
Less Cash Up Front
One of the biggest advantages when leasing is that it does not usually require a substantial down payment. In some states you even have the capability to pay the sales taxes as part of your monthly payment rather than in a lump sum.
Lower Monthly Payment
If your finance period is the same, your payment will predominantly be lower when leasing because the payments will be based on the vehicle’s estimated depreciation. Depreciation is the difference between the cars current value (capitalized cost) and what the vehicle is expected to be worth at the end of your lease (residual value.) In other words, you are contracting to only use a portion of the cars value vs buying the entire car.
Drive the Vehicle at its Prime and a New Car More Often!
With a short term lease, you’re able to drive a new car more frequently. Even better, you also have the option to lease one of Holmes Honda’s Premier Certified Pre-Owned vehicles! Majority of the time, customers who lease prefer to drive a new car every 2-3 years.
Guaranteed Future Value
No need to worry about resale value. If your car depreciates more than the estimated residual value in your lease contract at full term, you can turn it in at the end of your lease. If it’s worth more, you can purchase it.
Tax Advantage for Business Use
Those who lease a car for business may find larger tax deductions with leasing a vehicle rather than purchasing a vehicle.
Get the Most Out of Your Vehicle
If you are someone who likes to keep their vehicle for 5+ years, then traditional financing may be the best option for you. With their flexible terms and competitive rates, Honda Financial Services may be the best option for you when financing your New or Certified Pre-Owned Honda.
Payment by payment, your ownership equity may increase. The longer you drive your vehicle after completing your contract, the more value you acquire from your investment.
No Mileage Restrictions
This is a very important factor to consider if you drive more than 12,000-15,000 miles a year.
Make Changes to Your Vehicle’s Appearance
When purchasing your vehicle, you can alter the interior or exterior to your liking. Be sure to remember that your choices may affect the resale value.