If it’s time to upgrade your ride, you may be wondering if you should buy or lease your new vehicle. Before you shop for a new car at your Honda dealer, you need to assess your financial situation, car ownership goals, and your preferences as a driver to decide whether a vehicle lease or an auto loan is best for you.

1. Ownership Goals

Owning a vehicle is a major goal for some drivers. When you own a car, you can enjoy certain freedoms like customizing the vehicle or not worrying about minor wear-and-tear damage over time. Once your auto loan is paid off, as the sole owner of the vehicle, you can choose to sell your car at any time or pass down your vehicle to your children. Some drivers may not have long-term ownership goals, and that’s okay, too. A lease will typically last for two to four years, which is an ideal length of time for drivers who prefer to drive newer vehicles. Plus, if you change your mind about owning a car, you can choose to purchase your vehicle at the end of your lease.

2. Costs and Fees

Buying a vehicle comes with more upfront costs. If you want to get a good deal on your auto loan or reduce your interest rate, it’s a good idea to put down a larger down payment. The trade-in value of your old car can sometimes substitute or increase your down payment. On the other hand, when you lease a vehicle, you will not have to make a down payment, which may be ideal for your financial situation. However, a lease may come with other costs, such as fees for going over mileage limits or fees for wear-and-tear that you will need to pay at the end of your lease.

3. Vehicle Features

If it’s important to you to have access to the latest high-tech features, then a car lease might be the best option for you. With a lease, you can drive the top trim of your preferred model and enjoy all the advanced features while still making monthly lease payments that are affordable for your financial situation.

4. Warranty

Whether you lease or buy a vehicle, you will get the benefit of a new car warranty. When you lease a car, your vehicle will always be in the factory warranty period, since the lease term and warranty period are similar. When you buy a car, your factory warranty will expire over the length of your car ownership, so you may want to purchase an extended warranty at some point. Financing your new vehicle means you will need to determine whether leasing or buying a vehicle is better for your goals and preferences as a driver. Reach out to Gates Honda in Richmond, KY to ask about finance opportunities today.

Tags: buy or lease, Honda, Honda cars, Honda cars for sale, Honda dealer, Honda Dealership, Honda SUV, honda suvs for sale, Honda Trucks, Honda trucks for sale, Lease, Lease a Honda
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