Buying Vs. Leasing

Should I buy a new car or should I lease? What will my lease payments or finance payments be? What can I afford? The options - and the questions - can feel confusing. Luckily, the leasing and financing experts at Winter Honda should help you decide which option works for you.

When you buy a car, you'll be paying for the entire cost of a vehicle. Some people are able to pay upfront, but some Brentwood drivers will need a payment plan to repay a car loan. The fact is, even if you pay in increments, you still pay the full price of the car.

When you lease a car, it's yours to use for a set amount of time. You pay lease payments, and these lease payments are a the portion you pay each month. You're really only paying for the time you use the car; in this sense, leasing is like renting your car long-term.

BUYING

ADVANTAGES

Owning a car can be a great investment. If you buy a Honda, and you take good care of it, you may not need to buy another car for years, or perhaps you'll be able to sell it for a good price when you opt for something new. Because there are no restrictions, you'll be able to drive as much as you want. And you can customize your car with accessories, add-ons, paint and bumper stickers, or aftermarket performance enhancers.

WHO OWNS IT

The car is yours and only yours. You might pay for it with cash, or make payments under a financing plan. If you're financing the car, your lender will require you to meet certain obligations, such as monthly loan payments or a down payment. Otherwise, your car can be repossessed.

UP-FRONT COSTS

Financing a car means the bank or lender will need an initial payment from you, which is usually calculated according to your credit score, among other factors. You may also choose to trade in your old vehicle, the value of which can be put towards your down payment.

FUTURE VALUE

While the value of a new car begins to depreciate as soon as you drive it off the lot, you may be able to sell your car for a fair price as long as you maintain it properly. It's important to visit a factory-authorized service facility at regular maintenance intervals for this reason. However, even a car in bad shape may be sold for parts or scrap.

END OF PAYMENTS

You'll have to pay a certain amount as stipulated in your contract, but once you're done, that's it. The institution you borrowed from will send you a Lien Release, which is proof that the vehicle belongs entirely to you and may not be repossessed for nonpayment. The vehicle is now yours.