When it came to getting a new ride, it used to be that you'd simply buy it. While that usually involved taking out a loan, it was relatively simple. Today, there's a lot of talk about leasing your next Honda model, though. What's that about? Fortunately, we here at Honda of Mahwah are here to demystify and explain what the pros and cons of buying a car and leasing are.
A Look at Car Loans
Financing a new Honda is much like financing a house. You pay a certain amount as a down payment up front, and then you'll pay the rest off over a set period. Once you've paid the loan off completely, the car is 100 percent yours. Even before then, you can drive it around Mahwah, NJ as much as you like, personalize it and even sell it.
Learn More About Auto Leases
Just like financing a new Honda is like financing a new house, leasing a new Honda is much like renting an apartment. You don't own the car, but you've made an agreement that lets you drive the car for a certain period of time and within certain guidelines. While you'll still make monthly payments, the amount you're paying off is the expected depreciation during the lease rather than the full value of the car.
How to Decide Which Works for You
If you want the freedom to do with your new Honda what you like, and you don't mind the higher payments, financing is likely the best choice for you. While leasing is often much more affordable from month to month, you're usually limited to a certain number of miles per year and can't modify or upgrade it.
Of course, if your yearly driving distance is within these limits, and you're not interested in upgrading or modifying the ride, then leasing your next Honda vehicle can be a fantastic choice. Plus, when the lease runs out in a few years, you can upgrade to the latest model quite easily.
We're sure you still have some questions, or you might need some extra help figuring out your unique situation. Whatever the case, don't hesitate to drop by Honda of Mahwah and meet with our expert finance team!
