Should I Lease Or Buy My Next Honda?

Leasing vs. Buying a Vehicle

When shopping for a car, you've asked yourself, "Should I lease or buy?" You probably thought the answer was to buy since that's what most people do. But did you know leasing has benefits that buying doesn't?

A lot of car shoppers don't even think about leasing because existing misconceptions lead them to believe they are making monthly payments and will have nothing to show for it when the lease ends. Let us dispel some common myths about leasing a Honda before you completely rule it out as a valid alternate to financing.

Leasing Misconception #1:  If I finance my new Honda, I can eventually own it. This will never happen if I sign a Honda lease.

Truth:  Many people won't even think about leasing a Honda simply because they don't want to make payments on something they won't eventually own. In reality, most car buyers will never own the vehicles they finance. Only 19% of people who select 60-month financing will keep their vehicle long enough to make that final payment.  That means if you trade before you pay off the loan, you have basically leased the Honda without enjoying any of the benefits of leasing or of actually owning it.

Leasing Misconception #2:  Fees and penalties accompany leases.

Truth:  Leasing also gets a bad rap because car shoppers have heard that steep penalties follow the term of their Honda lease. This is yet another leasing myth. There are typically no disposition fees, early termination fees, turn-in fees or purchase fees with most Honda leases. Even if you happen to damage the vehicle during the term of your lease, all you have to do is turn it into your insurance company as a claim just like you would with any vehicle you financed or owned.

It is true that you will be responsible for all vehicle repairs during your lease. However, a lease usually ends around the same time as the Honda New Vehicle Limited Warranty. This makes it highly unlikely that you'll have to pay any out-of-pocket costs for repairs to your new Honda.

Leasing Misconception #3:  When my Honda lease is up, I have nothing to show for it.

Truth:  What happens after your lease ends is entirely up to you! Many people believe that they have nothing to show at the end of the least. In reality, you've actually gotten the best years out of an asset with one of the quickest depreciation rates.

That being said, there are still many options to consider when a lease is over. If you love your Honda, you can buy it by paying off the remaining balance or "residual value." You could also choose to lease a different new Honda or simply walk away.

What Are Some Benefits of Leasing?

While both options have pros, leasing your new Honda offers perks you can't get with a regular purchase. We'll delve into the lower monthly payments, minimal repair costs, frequent upgrades, and the variety leasing provides.

Lower Monthly Payments

Monthly payments are hands down what drives stress the most. Instead of suffering the monumental cost of owning your vehicle, leasing lets you breathe easy.

Leasing gives you lower payments because your costs are on the vehicle's estimated depreciation, not the principal. Also, your monthly amount is smaller because you're paying during the lease term, which usually is one to three years.

Lastly, there's little to no down payment when leasing a vehicle. For down payments, you need around 20% when you buy. With costs like this, leasing lets you put more money in your pocket for other adventures.

Little to No Repair Costs

The second best thing about leasing is having minimal maintenance costs. Contrary to buying, since you own the vehicle, you must pay for repairs even if you have a loan. Leasing lets you drive with confidence, knowing they're mostly covered.Choosing to lease your car means that, on average, the dealership has to cover any repairs or maintenance. The reason is that many new vehicles are still under various warranties that may cover different needs.In other words, since lease agreements are so short, the automaker's warranty has a better chance to stick through your lease.

You Can Upgrade Often

Another perk about Honda car leases and leasing is that you can upgrade to another vehicle once your term ends. Since leasing has short time frames, you can easily pick newer models frequently.In contrast to buying, you must pay off your loan, navigate current values, and go through that route. With leasing, you don't have to worry about value as you're only paying the depreciation, and when the lease is up, you don't have to worry about the value.A terrific perk of leasing is the more vehicles to choose from. Unlike buying, where you need to have a strict budget and fewer cars to pick from, leasing lets you pick newer models with excellent packages.With more choices, you can pick the vehicle that suits your needs. This reason plays off of having low monthly payments that make driving newer models easier than buying.

The Choice is Yours!

While buying has perks, people tend to think leasing doesn't have much to offer. Leasing lets you get low monthly payments, little to no repair costs, new cars often, and more.When choosing to buy or lease your Honda, make sure you check out Honda financing with Glockner Honda in Portsmouth, OH.