If you’re ready to get a new car, you have a big decision to make. Should you buy or lease your vehicle? Both have lots of benefits, so it comes down to which option is right for you. Let’s take a closer look at buying and leasing, so you’ll know which one to choose.
The upfront costs vary for buying and leasing. If you choose to buy the vehicle, you might have to make a down payment. This is especially true when financing through a bank. You don’t have to make a down payment when you lease a car, but you need to pay a security deposit, taxes, and other fees. You generally have to make the first month’s payment before you take the car home with you as well.
It usually costs less upfront to lease a vehicle. If you’re on a tight budget and want to take a new car home today, leasing might be the right option.
You also need to consider the monthly costs when buying or leasing a vehicle. Typically, you will spend more on monthly payments when you buy a car. You have to pay the entire value of the vehicle, plus interest. On the other hand, you aren’t buying a car with a lease. You are leasing it, so the monthly payments are generally lower. Many people like to lease because it allows them to get their dream vehicles while sticking to a budget.
Future Value of the Vehicle
If you buy a car, you need to keep up with regular maintenance, so it holds on to its value. This will slow down the depreciation, so you can get more when you trade it in. You don’t own a leased vehicle, though, so you don’t need to worry about trade-in value. However, you do need to be mindful of wear and tear guidelines and mileage limits. If you go over the limit, you might have to pay a fee at the end of the lease.
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Making the Final Payment
When you own a car, you can’t help but feel a rush of excitement when you make the last payment. The car is now completely yours. When you make the final payment on your lease, the lease term is up. You will return it to the dealership. If you want to keep the car, you can talk about buying it at the end of the lease.
Whether you want to buy or lease a new vehicle, David Hobbs Honda in Glendale, Wisconsin, has you covered. We can go over your payment options for purchasing and leasing your dream car and help you choose the one that works best for you. Visit us today to look through our lineup of Hondas.