Buying or Leasing: Which is Right for You?
The decision to buy/finance or lease your Honda depends on many factors, but most customers make the decision based on monthly payments and how long they typically drive their vehicles. Generally, customers who finance their vehicles tend to drive them for five to ten years and appreciate driving without mileage limitations. Customers who lease prefer to drive a new car every two to three years and appreciate making lower monthly payments. For certain business customers, leasing may also provide tax advantages.
When trying to decide what solution meets your needs in the Bowling Green area, explore the detailed benefits of leasing and financing from Gary Force Honda!
Benefits of Leasing
If you enjoy getting behind the wheel of a new vehicle every few years, then leasing might be right for you. Take advantage of a wide variety of leasing benefits, including:
- Experiencing your Honda at its prime
- Paying less cash up front
- Making lower monthly payments
One big advantage of leasing your Honda from Gary Force Honda is flexibility. You aren’t making a long-term commitment and can usually drive a more expensive vehicle with a lower monthly payment. Typically, car leasing is for a relatively short period of two to three years. When the lease period is up, you may simply bring the car back and walk away. When leasing you have lower maintenance costs, since you tend to need only minor services like oil, fluid, and filter changes during the short period of ownership. Vehicles are usually leased while still under warranty, giving you better peace of mind.
Benefits of Buying
If you typically drive a vehicle for 5 to 10 years, traditional financing may be your best option. You also have the unique opportunity to:
- Own your Honda
- Get the most out of your Honda
- Not be restricted by mileage limitations
Buying a vehicle from Gary Force Honda is a fairly straightforward process with several advantages. You have complete ownership of the vehicle which is titled in your name, or you borrow money from an automotive lending agency (our finance team will help with this) and make monthly payments until the loan is paid off. The average new car loan is five years. As you make payments, you gain equity in the vehicle until it’s eventually all yours. You can keep the vehicle as long as you like and do whatever you want to it, from installing aftermarket accessories to giving it a custom paint job. You can also trade it in or sell it at any time.
| BUYING FROM GARY FORCE HONDA | LEASING FROM GARY FORCE HONDA | |
|---|---|---|
| OWNERSHIP | You own the vehicle and can keep it for as long as you want. | You don’t own the vehicle. You must return it at the end of the lease unless you decide to buy it. |
| UPFRONT COSTS | Cash price or a down payment (often required), taxes, registration, and processing fee. | First month’s payment, a refundable security deposit, a down payment (often not required), taxes, registration, and processing fee. |
| MONTHLY PAYMENTS | Loan payments are usually higher because you’re paying off the entire purchase price of the vehicle, plus interest and other finance charges, taxes, and processing fees. | Lease payments are almost always lower because you’re paying only for the vehicle’s depreciation during the lease term, plus interest charges, taxes, and processing fees. |
| EARLY TERMINATION | Sell or trade in your vehicle at any time. Use money from the sale to pay off any loan balance. | If you end the lease early, you may be charged early-termination fees. |
| VEHICLE RETURN | Sell or trade-in in your car when you decide you want a different one (we will buy your car even if you don’t buy from us!). | Return the vehicle at lease-end, and walk away. You can also buy it and keep it if you have fallen in love with it! |
| FUTURE VALUE | The vehicle will depreciate, but its cash value is yours to use as you like. | The vehicle’s future value doesn’t affect you financially, but you have no equity in it. |
| MILEAGE | Drive as many miles as you want (but the value of your vehicle may decline with higher mileage). | Most leases limit the number of miles you may drive, often 12,000 to 15,000 per year. If you go over, you will be responsible for charges above the mileage limit in your lease. |
| MAINTENANCE & EXCESS WEAR/TEAR | Drive as many miles as you want (but the value of your vehicle may decline with higher mileage). | Choose how and when to repair your vehicle. Wear and tear may lower the vehicle’s trade-in or resale value. Maintenance costs may be higher when brake/tire/transmission/engine service is required. |
| END OF TERM | At the end of the loan term (typically five years), you have no further payments and you have built equity to help pay for your next vehicle. You can keep it, sell it, or trade it in. | At the end of the lease (typically two to four years), turn the vehicle in and walk away. If you love it, you can buy/finance the vehicle; or lease or buy another vehicle. |
| CUSTOMIZING | The vehicle is yours to modify or customize as you like. | Any added modifications or custom parts need to be removed before you return the car. You may be responsible for fixing any residual damage. |
For more details on buying or leasing your next vehicle from Gary Force Honda, feel free to stop in and see us at 2325 Scottsville Road in Bowling Green! Our dedicated sales team will help you find the right vehicle with the right path to ownership. If you prefer, call us at 270-282-7877 to schedule an appointment today!