Decision-making can be tough, especially when it comes to buying or leasing a car. Luckily, at Washington Honda, you’ll get great rates either way. If you’re a little confused about what buying and leasing a car truly entails, here are some pointers, along with some upsides and downsides to both.
When you buy a car, you pay for the entire value of the car, regardless of how many miles you drive it or how long you keep it. If you choose this route, you can pay cash or opt for an auto-finance loan.
Leasing a car is only an option for brand-new cars. When you lease a car, you only pay a portion of a vehicle’s total value. The key difference between leasing and buying is that after the primary term, usually two-four years) the vehicle has to be returned to the leasing company.
Buying - the upside: Buying a car has many upsides, the biggest being that you actually own it. Other benefits include:
- No monthly payments after you pay it off.
- You can do what you want with it - or to it - including selling it.
- There’s are no mileage restrictions or other penalties to worry about.
- Insurance policy limits are typically lower.
Leasing - the upside: The main perk of leasing a car is that you have the potential to save money. Here’s how:
- Monthly payments are generally lower.
- There is little-to-no down payment required.
- There is no up-front sales tax payment.
- There is less out-of-pocket cost when acquiring and maintaining the car.
Buying - the downside: One downside to buying a car is that monthly payments may be higher. This can be a definite cause of money woes. You will also have to pay a large down payment, which can be hard for many to come by. Another problem is that buying a car leads to rapid depreciation of the vehicle, which leads to a lower resale value in the end.
Leasing - the downside: The main downside to leasing a car is that you will never own the car outright. When your lease comes to an end you have one of two choices: return the keys to the dealer and find another car to lease. Or, decide to keep the car by financing the remaining balance on the car and begin making loan payments. Another problem with not actually owning the car is that there are many stipulations to adhere to, including mileage restrictions.
While we have discussed some cons of both buying and leasing, Washington Honda can help you figure out which route is right for you and keep most of your money where it should be - in your pocket. For more information on buying and leasing, contact Washington Honda, located in Washington and South Hills, Pennsylvania and Morgantown, West Virginia.
Washington Honda specializes in new and used Honda cars, trucks, hybrids and SUVs.
Located in Washington, PA. Serving Greater Pittsburgh, Canonsburg, Charleroi, McMurray and Waynesburg, Pennsylvania; and Morgantown and Wheeling, West Virginia.
This entry was posted in Washington Honda and tagged Washington Honda, washington car buying, washington car leasing, Washington Car Tips on 06/09/2015 at 1:16 PM