Lease vs Buy

It’s not easy to decide between leasing vs buying a car. On one corner, the buyer has to contend with a higher monthly expense but they end up owning the vehicle afterward.

Meanwhile, leasing may result in lower payments each month while letting you drive a vehicle that is more costly to own, but you go into a loop where you never stop paying for it.

To make the decision easier for you, let’s take a look at the pros and cons of getting a lease vs buying a car in Hillside, NJ.

Overview of Leasing vs Buying a Car

The concept of purchasing a vehicle through the use of a car loan is quite straightforward. You take out money from a bank or financial agency and pay them a monthly amount for a given number of years.

A portion of the payments you make ends up paying for the loan’s interest while the rest settles the principal. The higher the interest rate on your car loan, the higher the total payment you need to make.

As you slowly pay back the principal, you also build up equity. You own the car once you’ve settled the loan.

When you choose one of the many Honda lease deals, you need to make monthly payments in order to drive a new car. This will be only for a given time and the payments you make will be significantly lower than getting it through a loan.

Let’s take a look at the pros and cons of why people choose to lease a Honda rather than buy them.

Pros of Leasing

Many people choose to lease a car than purchase it through a loan. One major reason is that they only have to deal with lower monthly payments since there’s no principal involved.

Other advantages of leasing include:

• Getting to drive the car throughout its trouble-free years
• Driving the latest models while still being covered by the manufacturer’s warranty
• Leasing might come with free oil changes and other maintenance services
• You can get a more costly and better-equipped vehicle that you can’t afford through a standard loan
• Your vehicle will come with the latest safety features
• Some business owners might have major tax benefits
• Simply drop off the car at your dealership at the end of the agreement

Can I Extend My Car Lease With Honda?

People who are interested in keeping their vehicle through a lease for a while longer or simply want to wait for the latest Honda model to release can extend their existing deal.

It’s possible to extend your lease, in most cases, for at least a month following the same monthly payment agreement.

Can You Lease Used Cars?

Yes, you can lease used cars and they follow the same process as leasing a new vehicle. The main difference that it has is in terms of the sales price and the estimated value at the end of the lease.

These elements will also determine how much you’ll pay on a monthly basis.

Conclusion

Leasing a car is beneficial for people who don’t want to be tied to a long-term deal while only paying a fraction of the cost of buying one. Consider the benefits that you can get with what a lease agreement can give you.

If you want to start the process of leasing your next vehicle, Route 22 Honda is here for you. You can also view our new Honda cars and used vehicles available for lease today.