Leasing vs Buying: Which Is the Better Option?

After you have found a Honda vehicle which suits your needs on the road, and after you have taken it for a spin around the block on a test drive, your next step is to find a financing plan that you like. We know that this part of the purchasing process can seem stressful, especially for new buyers and folks who are shopping on a budget. Don't worry, though -- our team has decades of combined experience, and can help you find a specific plan that best complements your budget and your driving habits.

Additionally, our team can answer any questions you may have when you arrive at our dealership. One of the main questions we often get pertains to leasing and purchasing, and the differences between these two options. If you are similarly stuck on which financing option to choose, our team can help you compare and contrast these different financing methods.

What's the Difference Between Leasing and Purchasing?

So what are the main differences between leasing and purchasing? What are the pros and cons of both options, and which is the better investment option for you?

Leasing

Leasing is often the more financially flexible investment option, especially on a monthly basis. That is because leases are priced at a static, monthly amount. This helps reduce your monthly costs, and can assist you with investing in higher-end models that may be out of your reach when buying.

However, leasing also comes with a few parameters. First and foremost, leased vehicles have a certain amount of free miles allotted to you. If you exceed your allotted miles, it will cost extra. Additionally, you are expected to keep the leased vehicle in good condition throughout the entirety of your lease.

Purchasing

This option is more straightforward, and is often the default option for many drivers. With it, you will take out an automotive loan (which will cover the initial cost of the vehicle). You will then pay down that loan for a specific number of months. The amount and length of this loan, along with a few other factors, is what will determine your monthly payment.

However, when you buy a car you do have to go through a credit check. Additionally, your monthly payments will most likely be higher than they would be if you leased the vehicle.

So Which Option Should You Choose?

So which financing option is a better investment option for you. This depends on your personal driving habits and your budget. If you live in the city and you are looking to reduce your financial burden, then you may be interested in learning more about leasing. Alternatively, if you are okay with slightly higher monthly prices and you want to own the vehicle you are investing in, then purchasing may be the preferable option.

Ready To Learn More?

If you would like to learn more about our selection of vehicles, or if you have any questions about leasing and buying, we invite you to visit us at Kokomo Honda, located in Kokomo, IN. Our team would be proud to help you schedule a test drive with your favorite model on our lot.

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