Buying vs. Leasing: Things You Need to Know

GRANDVILLE, Mich. -- If you're in the market for a brand new vehicle, you'll have to make the important decision about whether you want to buy it or lease it. Both options come with their own sets of pros and cons, but ultimately you have to choose what works best given your budget, driving habits, etc. Although, the process can be quite daunting.

Never fear! RiverTown Honda is here to help you compare buying vs. leasing a new car, and help put things in perspective before you before making that final decision.

THE BASICS

When deciding between buying or leasing a new vehicle, here a few things you should consider:

• The type of vehicle you want
• Your daily commute distance
• Maintenance costs
• Your driving habits
• Your monthly budget

Once you've got that hammered out, you'll be able to better determine which option is best for you.

BUYING

Pros of Buying a Car:

• Once your loan is paid off, it's yours. You can sell it or trade it in, whether to a dealership or third party.
• You can customize the vehicle any way you want.
• No mileage limits.
• You're not held financially responsible for wear and tear. Repairing any damage is your choice.
• You can build equity.

Cons of Buying a Car:

• Monthly payments are typically higher.
• Down payment may be more expensive.
• Vehicle value depreciates quickly, which can lead to hassle when trying to sell or trade-in.

Someone who needs to buy rather than lease a vehicle might require no mile limitations, or might want to pass the vehicle down to a family member after they’re through with it. Each person’s situation is different, which is why deciding to buy is a personal choice. We understand that purchasing a vehicle is a big investment, and also understand that the buying process can be intimidating if you’ve never been through it before. The auto and finance experts at RiverTown Honda have years of experience in establishing a purchasing plan that fits each customer's individual needs.

LEASING

Pros of Leasing:

• Maintenance costs are sometimes included in the lease.
• You can drive a new car about every 2-3 years.
• Lower down-payments and monthly payments.

Cons of Leasing:

• Mileage restrictions and possibly expensive over mileage costs.
• You're responsible for any damage.
• Early lease termination can be expensive.
• You don't own the vehicle.
• You can't customize the vehicle.

Leasing a vehicle is a popular option for consumers who are looking for a new vehicle, but aren’t interested in buying. Leasing a car is an attractive alternative to buying because you’re only paying for a portion of the vehicle, typically making it a more affordable option monthly. Someone who might find leasing more convenient than buying typically desires a new vehicle, has a shorter daily commute, doesn’t want to deal with in-depth auto maintenance, and is interested in a lower monthly car payment. 

Whatever choice you make, RiverTown Honda is here to help you every step of the way. Our auto and finance experts are ready, willing, and able to assist you in devising a purchasing or leasing plan that coincides with your budget. Schedule a test drive with us today!

Give RiverTown Honda, the #1 Honda Dealer in Michigan in 2017, a call at (877) 236-9113, or visit us at 4260 Kenowa Ave. Grandville, MI 49418, one mile west of RiverTown Mall.

Visit Us Online: RiverTownHonda.com

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