Buying vs. Leasing
Buying vs. Leasing
Spitzer Honda of Cleveland
Buying or Leasing a New Vehicle
Come to Spitzer Honda to find out the scoop on which is the best choice for you: to buy your next vehicle or lease it. Our knowledgeable sales and finance staff will be happy to answer all your questions and help you figure out which option makes more sense for your lifestyle.
Outside of buying a new home, your vehicle is often the next biggest purchase you’ll make. That’s why deciding on buying or leasing a car is so important. You want to make the choice that’s best for your budget and how you use your vehicle. When you come to Spitzer Honda, our Finance Experts will ask you questions that will help you make an informed decision.
Buying a Vehicle
When you buy a vehicle, you typically take out a conventional car loan. This means you borrow money from a bank, credit union, or other lending institution and pay them back with monthly payments for the number of years of your loan term.
A portion of each monthly payment goes to the principal (to pay off the loan), and a portion goes to interest on the loan. Finding a low interest rate is the key to an affordable auto loan because it allows you to pay off your loan sooner, and with less cost.
At Spitzer Honda, our Finance Experts work with a wide variety of lending institutions, allowing them to find you the best interest rates on your car loan so you end up paying less for a shorter amount of time.
The Benefits of Buying
There are many benefits to buying a new vehicle, like the 2021 Accord Hybrid that gives you an excellent 48 city/48 highway mpg. One great benefit is that with interest rates at historic lows, the percentage of your loan payment going to principal will be much greater, allowing you to pay it off more quickly.
And, when your loan is paid off, you own your vehicle free and clear. You can decide whether you want to continue to drive the car or sell it and purchase a new one.
When you buy a car—especially a newer one—you’ll also be getting the latest in safety, technology, and capability features vs. buying an older model vehicle. You can take advantage of features like Honda’s standard Multi-Angle Rearview Camera that gives you a better view while backing up and maneuvering in reverse.
Buying a new vehicle also gives you the benefit of excellent manufacturer’s warranties. For example, all new Honda vehicles are typically covered by a 3-year/36,000-mile warranty and a 5-year/60,000-mile powertrain limited warranty.
Leasing a Vehicle
Leasing a vehicle is essentially like renting it for a period of time. So, instead of paying the full purchase price, like when you buy, you simply pay the amount of depreciation that will occur during the lease term plus interest and a few other fees.
This means that your monthly cost will be lower since monthly lease payments are typically less than the monthly payments for buying a car.
The average lease is not long-term, generally two or three years, though this can be negotiable. Usually, you can also choose whether or not to apply a down payment, which will lower your monthly payments, depending on your current cash-flow situation.
When your lease term is finished, you don’t have any obligations other than returning the car and taking care of any major wear and tear problems or mileage limit overages.
The Benefits of Leasing
There are many reasons leasing a vehicle is beneficial.
The biggest is that you’ll have lower monthly payments on a leased vehicle than a loan on the same vehicle. That often means you can lease a higher model or trim level car, truck, or SUV—like the mid-size turbocharged Honda CR-V with available 19-inch alloy wheels, a heated steering wheel, and leather-trimmed seats.
You’ll also typically have a lower (or no) down payment, and pay a lower amount of sales tax than if you were buying. All of these mean more money in your pocket.
Another good reason to go with a lease contract is that you can keep up with the latest advances in technology, safety, and performance features. Since leases only last a few years, once your lease is up, you can move on to a new lease on a newer vehicle and the hottest innovations in the automotive industry.
Buy or Lease with Spitzer Honda
Drop by Spitzer Honda today to learn more about buying vs. leasing and the pros and cons of both choices. While you’re here, check out our full lineup of 2021 Honda vehicles, and our large inventory of Certified Pre-Owned and used cars, trucks, and SUVs.