You’ve found the perfect new Honda vehicle for sale that fits all your needs, but you’re aren’t sure if you should finance or lease your next car. There are many factors that you should consider when deciding how to pay. You may be surprised to find out that often leasing, instead of buying, is the better option if you are looking to save money.
Leasing a new vehicle gives you more options when compared to conventional financing. With traditional financing, you accept all the risks of owning a car, including the depreciation factor. When leasing, monthly payments are usually much lower than standard loan payments, there are traditionally no down payments required, and you can acquire a newer vehicle more often.
There are several factors to consider when leasing a car. First off, the initial cost is often lower, as Honda leases do not require any types of auto loan down payment. Much like renting an apartment, all you have to do is pay the first month’s amount, acquisition fees, and any other state taxes.
When you purchase your new Honda vehicle, most times, the bank will require a down payment, or you risk facing higher monthly costs. Usually, the down payment will be based on the purchaser’s credit score. So if you have a less than stellar credit, you could be facing higher monthly payments. You can lower your down payment by trading in your current vehicle, and apply the cost toward the purchase amount - but that equity will be reliant on your trade-in’s current price.
When it comes to leasing a new car, most terms will end before the Honda manufacturer warranty expires. Meaning if there are any significant service requirements, you are usually covered under the Honda lease warranty.
For lease owners, you will be required to provide regular maintenance, such as oil changes and tire rotations, as necessary. This will also include paying for any wear and tear. However, because lease deals only last a certain amount of time, your vehicle will not lose value as quickly as a financial purchase.
Honda is offering leasers a $500 Excessive Wear and Use or Damage Waiver. So if you’re a loyal customer, Honda may wave up to $500 in any standard wear and tear, when you lease with Premier Honda.
When you purchase, you have no obligation to your vehicle regarding maintenance, meaning that you won’t have to pay for any wear and tear if you choose not too. However, your new vehicle’s value will decrease when it comes time for trade-in or resale.
With a lease agreement, motorists are responsible for the mileage restrictions that may apply. If you are looking for a car to drive around town, a lease may be a perfect option for your family. Luckily with Premier Honda, enjoy a flexible term that can range from 24 to 60 months and 12,000 or 15,000 miles per year. You can even purchase more mileage at signing.
Whether you choose to lease or finance your next vehicle, you can trust the in-house finance team at Premier Honda in New Orleans to help you get the most out of your new car. Reach out to them today and speak with a friendly group of associates to learn more about leasing a new vehicle. Don’t forget to explore our massive online inventory first, and find a model that fits with your needs.