Financing vs. Leasing at Bannister HondaBlog Aug 4th, 2022
New Vehicle Auto Loans in Vernon, British Columbia
When shopping for your next new Jeep, Dodge, Chrysler, or Ram vehicle, buyers have to consider either leasing or financing their purchase, each with their own unique benefits and advantages. Financing gives complete vehicle ownership after you pay the monthly installments over the term. Leasing is like renting out a car, SUV or pickup truck in which you must return it at a predetermined date. Read on as we underline some benefits and downsides of both to help you make an informed buying decision. Once decided, get the process started with one of Lake Country’s most trusted car dealerships, Bannister Honda.
Difference Between Financing vs. Leasing
When you choose to finance your new vehicle, you are required to make monthly payments with interest to pay off the loan you took for owning the vehicle. When you opt for a lease, you pay a typically lower monthly installment as it does not lead to vehicle ownership.
Getting rid of your car is easier with both financing and leasing. You can sell or trade your financed vehicle and use the money to pay off the loan. In the case of leasing, you can simply opt for early termination by paying the required charges to end your contract or term.
When you own a car, you can drive it as far and as often as you want, which is why many people prefer financing over leasing. In leasing, you often get an annual limit, and you have to pay the incurred charges if you surpass that.
Why Opt for Financing?
- Financing helps build equity; the vehicle will be yours as you pay off the loan.
- You can get plenty of financing options available in the market and opt for the one that matches your needs and fits your budget.
- Financing plans are less complicated, which makes it easier to read between the lines while going through the financing conditions.
- Depending on your budget, you can decide whether you want to make smaller payments by opting for longer terms or vice versa.
- When you finance a new Honda, you can customize it to upgrade the design and capability features as you wish.
- The monthly installments in financing are higher than leasing.
- You need to bear the cost of any repair or part replacement once your warranty expires.
Why Opt for Leasing?
- The monthly leasing payments are typically lower than financing a car.
- In most cases, routine maintenance and repairs are covered under warranty.
- You don’t have to make long-term commitments with your Honda and terminate the lease as early as you want.
- The future depreciation value will not affect the monthly fees you pay for leasing the vehicle.
- With leasing, you also don’t have to worry about selling or trading your car when you want to buy a new one or get rid of the existing one.
- You won’t own your vehicle outright once your lease term is expired.
- You must bear the penalty or cost of any excessive wear and tear your vehicle may undergo.
- The conditions or a term for leasing may be complicated to understand, especially for those new to exploring this feature.
If you have any more questions and doubts regarding financing or leasing, reach out to our expert representatives at Bannister Honda. We are committed to providing the best-in-class services to ensure maximum customer satisfaction.