Buy vs. Lease
Know your purchase and leasing options at Honda of Seattle
If you want a car with little or no down payment, leasing is a fast and easy option. What's more, your monthly lease payment will probabaly be smaller than loan payments for a new car. Leasing appeals to individuals who use cars for business, need a car for a short time span, trade in their cars regularly, want to budget their monthly costs, or want to invest their cash in other areas. Yet leasing, does have its limitations and drawbacks. Let's compare leasing and buying.
Review the statements below to find out what option best suits your needs. You can also contact Honda of Seattle to discuss your choices with one of our financing experts and to learn about the latest rates.
Leasing from Honda of Seattle might be the best option for you if you agree with most of the following statements:
- In an average year I drive fewer than 15,000 miles.
- I don't usually feel an emotional attachment to my car.
- I need that real new-car smell.
- I want the security of having a warranty on my car.
- I typically want a car that's outside of my budget.
- I'd rather have low monthly payments than own my car.
If you agree more with the following statements, buying might be a better fit for you:
- I drive more than 15,000 miles every year.
- I like customizing my vehicle by tinting windows, getting a new paint job, installing a sound system, etc.
- I generally feel an emotional attachment to my car.
- I love watching my monthly car loan dwindle to nothing.
- My current vehicle is older than four years old.
- I'd rather perform my own repair work than have someone else do it.
As you can see, it's important to know all the factors at work before choosing between buying and leasing. If you're still weighing your options, take a look at the information below.
In a lease, you do not purchase an automobile. You contract to use it for the first, and best, period of its life.
A lease usually doesn't require a substantial down payment. In many states, you can even pay the sales taxes as part of your monthly lease payment, rather than in a lump sum.
If the finance period is the same, your monthly payments will be lower when leasing than when financing because your payments will be based on the vehicle's estimated depreciation. (You are contracting to use a portion of the car's value, rather than buying the entire car.)
Your taste and preference may change, and a short-term lease makes it easy to drive a new car more frequently. Additionally, you may need a larger or smaller car in a few years, and a lease makes it easy to plan for such changes.
You don't have to worry about resale value. If your car depreciates more than the estimated residual value in your lease contract at full term, you can turn it in at the end of your lease term. If it's worth more, you can buy it and keep it or resell it. Leasing leaves you with choices
People who lease a car for business may find larger tax deductions with leasing than with buying a vehicle. Check with your tax advisor.
If you typically keep your vehicle for five to ten years, then traditional financing may be your best option. With our competitive rates and flexible terms, Honda Financial Services may be your best choice in financing your new vehicle.
Payment by payment, your ownership equity may increase. And the longer you drive the vehicle after your contract is complete, the more value you will derive from your investment.
This is important to consider if you drive more than 12,000 to 15,000 miles per year.
You can alter the interior or exterior to suit your taste (though your choices may affect the resale value).
If you still have questions about leasing vs. buying, feel free to contact us and talk to our finance department. We'd be happy to help you make the best decision for your needs.