What Are the Differences Between Leasing and Buying a Car?

Here at Kokomo Honda, we work hard to make sure that every driver who visits our dealership gets the assistance they need, particularly when it comes to financing. After all, the purchasing process can seem daunting for those who have not bought or leased a car before (and even for those who have). That is why our team is here to help you every step of the way through the process of buying or leasing a car, while also answering any questions you may have.

Speaking of questions, one of the main ones we get pertains to leasing and buying: mainly, what the difference is between them, and which one is the better investment opportunity.

Leasing

Leasing is the perfect option for folks who are in need of a financially flexible, short-term driving option. In other words, if you aren’t looking to invest in a long-term vehicle and you don’t do a ton of driving, leasing can be an affordable option to consider. Leasing is based on a monthly pricing scale, which allows you to find a model that fits in your budget and provides you with the driving experience you are looking for. Plus, these affordable monthly prices help you access higher-end vehicles that may be out of your reach if you were to buy them.

Leasing does come with some restrictions, though. You will have to abide by mileage parameters (you get a certain amount free, and you have to pay extra for anything beyond it), and you have to keep the car in good condition.

Purchasing

If you are purchasing a vehicle, you are investing in it for the long haul. It’s akin to buying a house: you have to take out a loan to cover the initial cost of the vehicle, and then you pay down that loan for a certain number of months. Your monthly payment is based on a few different factors (size and length of the loan, APR, etc.), and once you pay it off you will completely own the vehicle.

However, for those who are keeping their budget in mind buying can be a bit daunting because it requires taking out a loan and going through a credit check. Still, you won’t have to worry about any mileage parameters or condition requirements.

Ready To Learn More?

If you would like to learn more about our selection of vehicles, or if you have any questions about the purchasing process, you are always welcome to visit us at Kokomo Honda, located in Kokomo, IN. Our team would be proud to help you with all of your automotive needs, from purchasing to servicing.

Visit us today, and we can answer all of your questions. We can even help you schedule a test drive with your preferred automotive option.

We are proud to serve drivers in Fishers, Lafayette, and Marion, IN.

Categories: Finance