Buy a Honda vs Lease a Honda
The decision to lease or finance depends on many factors, but most customers make the decision based on monthly payments and how long they typically drive their vehicles.
In general, customers who lease prefer to drive a new car every 2-3 years and appreciate making lower monthly payments. For certain business customers there may also be additional tax advantages with leasing.
Customers who finance their vehicles tend to drive them for five to 10 years and appreciate driving without mileage limitations.
Explore the detailed benefits of leasing and financing below.
Benefits of Leasing a New Honda
Drive the Vehicle at Its Prime
In a lease, you contract to enjoy a new vehicle for a specified period of time. If you love your Honda enough to own it, Honda of Kirkland has a convenient lease end return center. In addition, you can choose to lease one of our premier Honda Certified Pre-Owned Vehicles.
Less Cash Up Front
One of the biggest advantages of a lease is that it does not usually require a substantial down payment. In many states, you can even pay the sales taxes as part of your monthly lease payment, rather than in a lump sum.
Lower Monthly Payment
If the finance period is the same, your monthly payments will generally be lower when leasing (vs. traditional financing) because your payments will be based on the vehicle’s estimated depreciation. (You are contracting to use a portion of the car’s value, rather than buying the entire car).
A New Car More Often
A short-term lease makes it easy to drive a new car more frequently. Plus, if life changes demand a larger or smaller car in a few years, a lease can make it easier to plan and adapt.
Guaranteed Future Value
You don’t have to worry about resale value. If your car depreciates more than the estimated residual value in your lease contract at full term, you can turn it in at the end of your lease term. But if it’s worth more, you can purchase it.
Tax Advantage for Business Use
People who use a lease car for business may find larger tax deductions with leasing than with buying a vehicle. Check with your tax advisor.
Benefits of Financing a New Honda
Honda of Kirkland provides affordable, reliable, and competitive financing on new and used Honda vehicles as well as Honda Certified Pre-Owned Vehicles. Our low rates and flexible terms can get you behind the wheel of the Honda you want to drive. You can even add peace-of-mind protection with a Honda Care product that can be included in your monthly loan payment.
See Honda of Kirkland for specific financing terms, and be sure to examine our current offers.
If you typically keep your vehicle for five to ten years, then financing may be your best option. Honda Financial Services may be your best choice in financing your new vehicle, with competitive rates and terms designed to meet your needs.
Pride of Ownership
Ownership can instill a sense of pride. It can also build equity. Payment by payment, an owner’s equity may increase.
Drive As Many Many Miles As You Want
This is important to consider if you drive more than 12,000 to 15,000 miles per year.
Customize your vehicle
You can alter the interior or exterior to suit your taste (though your choices may affect the resale value.)
Still can’t make up your mind which choice is right for you? Come by Honda of Kirkland and a member of the finance team can address your financial needs and questions such as what is good mileage for a used car. Contact us today. You can also learn more about the Honda ECON button and Honda Lifetime Warranty coverage.