Leasing vs Buying a Car

Choosing whether to buy or lease a new car is a big decision fraught with lots of misconceptions that can be especially troubling for first-time drivers. At Genthe Honda, two questions we get asked often are what is leasing and is leasing a car a good idea? 

In simple terms, leasing allows you to drive a new vehicle without paying a large sum of money or taking out a loan. You simply have to make a small down payment, followed by monthly payments for the duration of the lease, and you can return the vehicle when the term expires. If cruising down the highway in a brand-new car every three years is your thing, a lease would definitely be your best option. 

Buying a vehicle means it becomes your personal property, while with leasing, you are simply "borrowing" it and paying for the depreciation it incurs in your possession, including interest and fees. At the end of your lease, you can return the vehicle or purchase it for the residual value. Here are a few pros and cons to leasing and buying that might help you decide how to pay for your next car.

Is it Better to Lease or Buy a Car?

There's no easy answer to whether it is better to lease or buy a new car, and each method has its pros and cons. While you get lower monthly payments with a lease, you don’t own the vehicle and have no equity towards a down payment on your next vehicle. Also, lease agreements have mileage limits, and you are required to keep the vehicle in near-showroom condition throughout your lease. Buying a car outright or via financing is a more expensive option, but once you pay off your loan, you can use your equity towards purchasing a new car. 

Lease Your Next Vehicle in Southgate, MI, at Genthe Honda 

There are various strategies to help save money when looking to get behind the wheel of your favorite vehicle, and getting a lease tops the list. Genthe Honda understands that choosing the right Honda vehicle and financing option is never an easy decision, and our team of experienced Honda lease and finance professionals is on hand to help you make the right choice. Contact us today, and we’ll be happy to answer any questions you might have and set up a test drive at your convenience.