If you're interested in the difference between buying or leasing, there are different options to consider. If you're the type of person who enjoys buying vehicles and personalizing them to your taste, buying might be a better option. On the other end of the spectrum, if you always want to drive the newest model possible, leasing is excellent! Each option has its benefits. If you're unsure which choice is right for you, you're in the right place. The financial experts at Vatland Honda are here to ensure you know everything you need to.
Pros & Cons of Buying
- Personalization: Since you own or are planning to own the model, you'll be able to customize it to your liking. If you want to get a bright pink paint job – have it, it's yours!
- You can pass it on: If you have children and would like to give them the family car after they graduate, you can do so with a vehicle you own.
- Drive as far as you want: If you have an auto loan or buy the car outright, there aren't any mileage restrictions. You can take a cross-country road trip in your vehicle without batting an eyelash. Contact our dealer for details on our newest lineup of Honda cars, trucks, and SUVs!
- Larger down payments: If you choose to finance the vehicle instead of lease, you'll most likely have more expenses up front. The down payment amount might be higher or the monthly payment.
- Maintenance: People who buy or finance their vehicles are responsible for the routine maintenance requests such as oil changes, brake replacements, or battery repairs. Aside from having Vatland's Bumper to Bumper Warranty, being responsible for the upkeep can be seriously stressful for some people.
- Long-Term Loans: While we all wish were well-off enough to have an extra $5,000-$16,000 laying around for an outright auto loan purchase, for many of working-class folks, this isn't the case. If you don't have the money upfront, then you'll have to apply for financing. Make sure that you're getting a reasonably priced auto loan for your credit score; otherwise you run the risk of being upside down later – making it harder to get another car later.
Pros & Cons of Leasing
- Lower Monthly Payments: If you lease a vehicle, you're more likely to owe lower monthly payments on newer vehicles, which is enjoyable if you like driving new cars without the new car price tag. If you're looking to lease a high-end vehicle that would normally cost around $500-600 a month, it might be available for a lease at $400.
- Upgrade every year: You can often upgrade if you do short-term lease, which can be nice if you like to drive new vehicles.
- No maintenance: Since you don't own the vehicle, you're not responsible for the upkeep.
- Small down payment: On top of not having a large monthly payment, the down payment requirements for lease specials can be amazing. You could save thousands on the new Honda vehicle you've been eyeing, just by leasing.
- Mileage restrictions: Many people tend to shy away from leasing options because they don't like the mileage restrictions. What a mileage restriction is, is when you are only allowed to drive a certain amount of miles a year. This can be costly because usually, restrictions range from 10-12,000 miles a year. Unless you live close to work or don't drive often, you could end a lease drowning in overage fees – so be honest about your driving habits!
- No personalization: Drivers who go for leasing options should be aware that they are technically renting the model, so they cannot make any personal customizations to the vehicle.
- Wear and Tear: You have to watch the wear and tear on the vehicle since you're technically paying to borrow it. Make sure you don't eat in the car or spill anything that you might have to pay for later.
- Eligibility: Not all leases are available due to credit restrictions. If you have moderate to low credit, you might not be eligible for a lease. We might recommend looking into our bad credit financing options instead.