Should You Buy or Lease a Honda?
It’s an age-old question when you’re in the market for a new car, “should I buy or should I lease?”
You’ve probably heard the case for both options from friends, salesmen, and even news articles. Still, sometimes having the pros and cons of both laid out before your eyes can help you make the very best choice for you.
Here’s the gist, the pros, and cons of buying versus leasing a Honda. You may be surprised which option works best for you…
Pros of Leasing
Let’s start with the positives of leasing a Honda.
This option allows you to drive away from the lot with a brand spanking new car. Typically, the monthly cost to lease a Honda is less than the monthly cost to pay off a Honda you have purchased.
This can be an attractive pro if you’re less interested in the long-term cost of leasing versus purchasing.
It’s important to keep in mind with a lease that the primary reason you’d choose this over buying is to satisfy your desire to drive something new and do so often.
With a lease, you have less of a long-term commitment. If you suddenly decide you’d like to switch things up and upgrade to a newer model, you can do it.
You’re less tied-down to the car you’re driving.
A lease is a good idea if you only need a car for a specified period of time. Say you’re entering a new city for a 3-year job assignment, leasing a car there would be much more financially wise than buying a new car.
As mentioned, generally speaking, monthly lease payments are less than if you receive a loan to buy a car at normal interest rates over a 3-4 year period.
Cons of Leasing
First things first, when you lease, you don’t own the Honda.
While leasing might seem like it will cost you less over the next couple of years (with that lower monthly payment), you’ll still be paying a monthly payment with no car of your own at the end of the lease term.
It’s true that all cars depreciate in value over time, but when you own a car yourself, the value it does sustain is yours to sell later if you choose.
With a lease, the car returns to the dealer when your contract ends.
Another question to consider when deciding whether to lease is how much you drive on a regular basis.
One of the downsides of leasing is that you have a limit or cap set on the number of miles you can drive the car each month.
Often, dealers will charge you somewhere around 12 cents or so for every mile you drive over the lease’s specified limit. This money can add up if you weren’t intended on going over your monthly mile allotment.
Other potential downsides of leasing instead of purchasing a Honda include:
- You must have excellent credit. Leases are nearly impossible to obtain unless your credit score is high.
- You will be charged for extra wear on the car when you return it to the dealer.
- No customizing a leased car. What you see is what you get.
- Getting out of a lease is hard. If for some reason you find yourself unable to make your payments, you’re in trouble. You will either have to try and sell the lease or harm your credit by attempting to end it early.
- Negotiating a lease can be challenging. Typically there are standard leasing options you will just have to choose from.
Pros of Buying
This is obvious: you own your own Honda.
You can do with it what you will, resell it, customize it, drive it as far and as long as you wish. That puppy is yours as soon as you’ve paid it off.
Other pros include the fact that it may be easier to obtain a car loan (as opposed to a lease) if you have a lower credit score.
You also have more flexibility when it comes to the contract’s details and terms.
For those more concerned with long-term investments and money, buying a car will always save you more in the long-run. True, leasing will come with smaller monthly payments, but the downpayment is usually about the same whether you buy or lease.
Not to mention, when you buy a certified pre-owned Honda, the principle is usually lower and you end up with less money spent in the long-run. Especially if you keep your car 10 years or more.
Cons of Buying
Honestly, the cons of buying a Honda are minimal. Unless for some reason you’re unable to make your payments. Even still, you’re in a better situation with a Honda you’ve purchased than with a lease if your finances take a turn for the worse.
With buying a Honda you are in charge of all care and maintenance. If something goes wrong, repairs are paid for out of your own pocket.
Another potential “con” as some might see it is that you will get more for your money when buying a car if you buy pre-owned or used. This basically means that unlike with leasing, odds are you won’t be driving away with a totally new car.
For those who value luxury and love to be seen in the latest model, buying a car will not satisfy that desire.
You may also have little to no control over who has driven your car previously. If you’ve got major allergies, and the previous owner was a cat person, that’s not something you can really control.
Otherwise, the cons of buying are honestly hard to come by.
Finding a Honda That’s Best for You
If you value luxury, owning the latest and greatest, and don’t want to pay for repairs yourself, then leasing a Honda may be a great choice.
If however, you’d like to have total control of your vehicle, its value, and spend less money in the long-run, then buying your Honda is always the right way to go.
If you still have questions about which option is best for you, contact us today for quality service and sound Honda-buying advice. Happy driving!