Should I Buy or Lease?
When the time comes to start thinking about getting a new set of wheels, you have a wide variety of decisions to make. Although many clients choose to buy their vehicles, leasing is another avenue to keep in mind if you’re looking for something a bit different. For your convenience, the Finance Department at Pohanka Honda of Fredericksburg is here to explain both sides of the coin. Let us know if you have additional questions!
First, let’s review the buying process. Most of the time, customers finance purchases with a loan so they’re not forced to spend a significant sum all at once. This allows you to take home a new or used model simply by providing a down payment and making monthly installments over the course of anywhere from four to seven years. During this time, you’ll get to use the vehicle as you please, but will need to stay on top of maintenance, especially as it ages. Once the loan has been fulfilled, you’ll be the car’s proud owner and can keep driving it, trade it in, or hand it down to your kids.
Alternatively, you might decide that leasing makes more sense. This type of plan allows you to take home a brand-new Honda with little to no money down, all while enjoying a more affordable rate when compared to financing. This is due to the fact that you’ll essentially be borrowing the vehicle from us, so you’ll only need to contribute toward its depreciation. Plus, these contracts only last about three years, so it’s easier to change up your ride more frequently. However, you’ll want to keep in mind that these agreements limit how much you can drive each year. Furthermore, unless you purchase it when the plan ends, you’ll always be responsible for a monthly car payment
Which Is Best for Me?
So, which avenue should you choose? Ultimately, it comes down to personal factors like your monthly budget, daily commute, and future goals. For instance, if you’re looking to make a long-term investment, then buying a car might make more sense. Although it can be more expensive up front, you won’t have to worry about limiting how much you drive or renewing your terms in a few years. Conversely, if you only need a car for a short period of time or wish to drive the latest models without breaking the bank, then leasing might be the better choice. We’re here to assist if you’re still unsure how to proceed.
So, should I buy or lease? At the end of the day, it depends on your individual circumstances. Pohanka Honda of Fredericksburg has competitive offers for both, so you have plenty to gain no matter which contract you decide is best suited for your needs.
- Contracts last between four and seven years
- Need to pay off full sticker price
- Can drive as much as you wish
- Eventually attain full ownership
- Choose a new or used model
- Contracts last between two and four years
- Only pay toward depreciation
- Yearly mileage allotment
- Option to purchase or exchange when contract ends
- Only new models