Community Honda

Buy vs Lease

Buying vs leasing

Helping Baytown Area Drivers Decide

When it comes to buying vs leasing, there are a few main differences that will help you decide which is better for you. The Community Honda Finance Center in Baytown is here to help you break it all down. From monthly costs and down payments to mileage restrictions and future investments, here’s what you need to know:

Starting Simple

Let's start with the most obvious differences and work our way to the more nitty-gritty stuff. When you buy a car, you will own it! Once you pay off the loan, you’ll no longer have to account for a car payment in your budget. With leasing, you always have to pay (until the lease is up and you start the cycle again).

However, when you buy a vehicle, remember that the down payment and monthly payments will be much more sizable; take a look at our quick and easy payment calculator to get an idea of what you’d be looking at. On the other hand. when you lease a vehicle, you are only paying for its depreciation; you are not paying for the cost of the car.

The Devil is in the Details:

  • Mileage. When you lease a vehicle, you have to keep the mileage below a predetermined level. Thus–if you tend to travel a lot for work–buying may be better for you.
  • Future value. When buying, you have to worry about the vehicle’s depreciation. If you plan to sell your car in the future, this should be a concern of yours. When you lease, the future value does not affect you; however, you have no equity in the car.
  • Wear and Tear. Leases hold you responsible for damages. When you buy a car, you don’t have to fix that ding you got at the grocery store (unless you want to).
  • Early Termination. When you buy a vehicle, you can sell it at any time; you can also use the money from the sale to pay off any remaining loans. With leasing, charges for early termination tend to be a bit more costly.

Deciding whether you want to buy or lease is a difficult decision; however, there is one quick tell-tale I’d like to leave you with...If you’re the kind of person who drives a car into the ground, buying is likely the better option for you. If you’re the kind of person who likes to hop into a new ride every now and again, a lease may be the better choice!

If you have any questions or would like more help deciding, feel free to contact our Baytown Honda Finance Center near Houston at (855) 347-4655.

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