When it comes time to acquire a new vehicle, the foremost question is whether to lease or buy. Unless you are purchasing outright with cash, which is not a feasible option for most, buying a vehicle involves getting approved for a loan and paying interest. The other option is to lease, which allows you to make a monthly payment and then return the vehicle at the end of the agreed term. Both of these options have significant benefits, but choosing the best option for you can be difficult. Let’s take a look at the finer points:
Consider the following:
- Limited mileage per year
- New car after a few years of use
- Smaller monthly payment
- Full warranty
If the features listed above are appealing, a lease might be appropriate for you. Leasing a vehicle is essentially “borrowing” it from the owner, with the understanding that you will follow certain rules concerning its use and care. Leases are more complicated and require a greater standard of care, but they do convey several potent benefits. Warranties help with maintenance issues and lower monthly payments mean you can enjoy the use of a vehicle you could otherwise not afford. Additionally, at the end of the period you can walk away from the vehicle and move to a later model year.
In summary, leasing has great benefits if you can stick to the requirements imposed by the agreement.
Financing a vehicle is the most common method of acquiring a vehicle, owing to its simplicity and the direct benefit of owning the vehicle outright at the end of the term. There are also no requirements imposed by the financing company, which allows for greater freedom of use. Monthly payments are calculated based on the amount borrowed and the entire loan can be paid off early in most circumstances. While monthly payments are generally higher than those you would expect in a leasing arrangement, financing provides a greater range of freedoms you wouldn’t otherwise expect.
Bay Ridge Honda is a premier dealer of Honda vehicles located at 8801 4th Avenue in Brooklyn. Operating for over 40 years, Bay Ridge is dedicated to providing you the best car buying experience in any of the Five Boroughs.
Honda Finance near Long Island | Buying vs Leasing in Hempstead NY
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