Buying vs. Leasing
Considering the ideal vehicle for your lifestyle, you might consider buying vs. leasing. Much like selecting the perfect brand, model, and specifications, this decision hinges on your priorities regarding ownership and finances.
In this comprehensive guide, our experts from Andy Mohr Honda will explain each financing method, its advantages, and the factors you should consider as a driver in Bloomington, Columbus, and Ellettsville, Indiana.
What's the Difference Between Leasing vs Buying?
There is a fundamental difference between leasing and buying a vehicle, and it lies in the ownership aspect. When you lease a car, you're borrowing it. You pay monthly installments to use the dealership's vehicle for an agreed-upon period or mileage, after which you return it.
On the other hand, when you buy a car, you become the complete owner of the vehicle, and you may keep it for as long as you want. This typically involves taking a bank loan and dividing the car's total cost into manageable monthly payments.
Once you have purchased a vehicle, either outright or through financing, you have the right to use it without any mileage restrictions, and you can decide when to sell or keep it.
Considerations on Mileage and Duration
Your driving habits are crucial in deciding whether to lease or buy a vehicle. Leasing agreements usually include a mileage cap; exceeding this limit will incur extra charges. The main benefit of leasing is that you can enjoy a new car every few years and have a fresh odometer.
On the other hand, if you often go on long trips or plan to keep the vehicle for many years, purchasing the car removes any concern over mileage limits. This means you can drive it as much as you want without any unexpected costs caused by mileage limits.
About Monthly Payments and Initial Costs
Lease payments are usually lower than the payments for a financed vehicle. However, owning a car lets you sell it and get some of your money back.
Regarding upfront expenses, buying a vehicle often requires an initial down payment, taxes, and registration fees. On the other hand, leasing generally involves upfront costs such as the first monthly payment, acquisition fee, refundable security deposit, and tax payments.
Looking to Customize? Buy Your Vehicle
If you are considering customizing a vehicle, purchasing it may be more advantageous than leasing it. When you own the car, you have complete autonomy over any modifications you wish to undertake. It is essential for car enthusiasts who want to add a personalized touch to their vehicles, whether through performance upgrades, aesthetic changes, or both.
On the other hand, leasing a vehicle often has stringent restrictions that usually prohibit alterations. These agreements are designed to ensure the car remains in a sellable condition, limiting the lessee's ability to customize their vehicle.
What's the difference between buying and leasing near Bloomington, IN?
Buying means you're working toward full ownership, while leasing is more like long-term renting.
Who should consider leasing near Bloomington, IN?
Leasing works well for drivers who want lower monthly payments and enjoy driving the latest models with the newest features every few years.
Who should consider buying near Bloomington, IN?
Buying is better for those who plan to keep their vehicle long-term, drive a lot of miles, or want to customize their car without restrictions.
Does Honda offer special lease-end incentives or financing deals for returning lessees?
You can potentially enjoy lease-end loyalty offers and financing incentives for returning lessees. These may include flexible financing rates or offers toward a new lease or purchase. Just ask our team what options you have!
Learn More About Buying vs. Leasing Today
Choosing between buying vs. leasing near Bloomington, Columbus, and Ellettsville, IN comes down to different facets of your lifestyle and budget.* Our finance experts at Andy Mohr Honda are here to guide you toward the most suitable path so that you can get out for fun at Switchyard Park. Contact us today!