When you’re looking for your next car, truck, or SUV in the Centennial, Aurora, or Denver areas, you might be wondering which financing option you should go with: lease or buy?
To give you all the answers you need on whether to purchase or lease your next vehicle, our team at Mile High Honda has all the details right here. See the pros and cons of buying or leasing, and decide which option fits your budget best.
Buying a Car: The Benefits
Buying your next vehicle can certainly benefit you in many ways. You’ll have to first consider how long you plan on keeping the car. When you purchase a vehicle, you’ll usually obtain a loan from a bank or lender, where the duration can be anywhere from 3-5 years or more.
When the loan is paid off, you’ll receive the vehicle title in the mail, and it’s yours to keep, payment-free. This is appealing because even though you’re locked into a loan, you’re making payments toward ownership. Any extra money that you put into the vehicle (maintenance, accessories, etc.) will benefit you in the end, as well.
Buying a Car: The Drawbacks
There are a few less positive traits of buying a car. For example, in many cases, monthly payments are higher as opposed to if you leased the vehicle. Additionally, interest rates increase, and you’ll usually need a down payment, trade-in vehicle, or both.
Plus, when you purchase a vehicle, you may not get back the money you put into it if you choose to resell it down the road. So, the money that you put into the vehicle over the years may ultimately be less than its resale price.
Leasing a Car: The Pros
If you don’t think buying a vehicle is the right option, you can always lease. When you lease a vehicle, your payments will be lower, since you’ll be paying toward the residual value of the car. Plus, many times you won’t need a down payment, either.
When you opt for a lease, you’re looking at shorter payment terms. Lease terms usually last from 1-3 years, when you’ll have the option to either trade in your current vehicle for the next model, or buy it out altogether.
Leasing a Car: The Cons
While these positive traits of leasing your next vehicle might be appealing, there are a few drawbacks. One of the issues drivers face with leasing is the limit on mileage. You’re usually allotted about 9,000-15,000 miles per year and can face extra fees if you go over by the end of your term.
You could also actually owe money for those scratches and dings that come from regular wear and tear of everyday driving. So if you’re someone who makes long drives frequently or live in a busy area, you might want to reconsider leasing.
Learn More About Leasing vs Buying at Mile High Honda
Both leasing and buying have their pros and cons, but to give you a better idea of what will work for your budget, contact our expert finance team at Mile High Honda.
We enjoy helping our customers in the Centennial, Aurora, and Denver areas get into their dream Honda vehicles with the right financing choices.