Published on August 9, 2017
1. SHOULD I BUY OR LEASE A HONDA? Honda vehicles are popular among consumers thanks to their reputation for exceptional longevity, safety and high resale value. But when it comes to investing in a Honda vehicle, which option is better? To buy or to lease?
2. BENEFITS OF BUYING A HONDA – COMPLETE OWNER- SHIP Buying a vehicle ensures the owner completely owns the vehicle, meaning they can add whatever customizations they want and drive it as far as they want. Leased vehicles are usually subject to strict guidelines dictating how the car should be used and how far you can drive.
3. BENEFITS OF BUYING A HONDA – ABILITY TO SELL Car owners can sell their vehicle whenever they choose whereas leaseholders are unable to because they must turn the vehicle in at the end of the lease’s term. Car owners can recoup some of the money they spent on their vehicle whereas leaseholders can’t. On the other hand, if the leaseholder decides they like the vehicle and wish to purchase it, the money they’ve spent up to that point on the lease is generally subtracted from the purchase price.
4. DOWNSIDE TO BUYING A HONDA – THE VEHICLE DEPRE- CIATES The minute a car is driven off the lot it begins to depreciate, meaning the car instantly loses value and can’t be resold at its original price.
5. DOWNSIDE TO BUYING A HONDA – LENDERS OWN YOUR CAR Auto shoppers often use loans to purchase their vehicle, which means lenders truly own the car until the buyer pays off the loan in full, including interest. Defaulting on a loan means the lender can repossess the vehicle either temporarily or permanently.
6. DOWNSIDE TO BUY- ING A HONDA – HIGH DOWN PAYMENTS When a buyer purchases a car they often have to make an initial down payment. Most buyers must put down 10% - 20% of the car’s price before obtaining the vehicle. If you don’t have thousands of dollars on hand, that may not be an option.
7. BENEFITS TO LEAS- ING A HONDA – LOW MONTHLY PAYMENTS Leases generally have low monthly payments, making leases easier to afford than purchasing a car outright. If a lease holder chooses to buy out the car at the end of the lease term, the total already paid during the lease is deducted from the vehicle’s cost. You may be able to pay off the rest with a small loan.
8. BENEFITS OF LEASING A HONDA – YOU CAN TRADE IN FOR SOME- THING BETTER Did you lease a particular model of Honda only to discover you don’t like it? Leasing allows you to trade in the vehicle at the end of the lease’s term, ensuring you can find and purchase a vehicle you actually do enjoy. Many leases often offer trade-in incentives that can be put toward purchasing or leasing another vehicle, especially if it’s another Honda through the same dealership from which you leased your previous vehicle.
9. DOWNSIDES TO LEASING A HONDA – LEASED CARS RE- QUIRE MORE CARE A lease requires the vehicle be turned in or purchased at the end of the lease agreement. Dealerships often won’t accept the return of a leased car if it’s too damaged and may require the lease holder to make repairs in full before deeming it to be in acceptable condition.
10. DOWNSIDES TO LEASING A HONDA – USAGE LIMITS Lease terms often include limits dictating how you may use the vehicle. Leases prohibit vehicle customization and can even charge for going over mileage limits. Some dealerships will charge as much as 12 cents for every mile you drive over the agreed upon limit.
11. PURCHASE OR LEASE A HONDA FROM HONDA OF SEATTLE Still unsure whether you want to lease or buy a Honda car, truck or SUV? Get professional assistance from the staff at Honda of Seattle. Stop by or give us a call at 206-382-8800.