Lease vs Buy
Do you know the difference between leasing and buying a car? If not, you should get familiar. Choosing one over the other is an important step in the car shopping process.
At Pat Peck Honda, we're committed to keeping out Gulfport, Long Beach, and Biloxi customers informed. That's why we've put together this article highlighting the differences between leasing and buying a vehicle.How Do I Lease a Car
What Makes Leasing Different from Buying?
When it comes to financing a vehicle, you probably already know the basics of buying. You intend to own the car in full, which means you also have to pay for the full price of it over time.
Leasing is a bit different than that. Instead of owning the car, it's more like you're just borrowing it, say for a term of a couple years of so.
During the time that the car is in your possession, it will undoubtedly incur a bit of wear and tear, causing the value to depreciate. Over the course of your lease, that depreciation is all that you're paying for.
The Pros & Cons of Leasing a Car
Since you're only paying for the depreciation value on your lease, it stands to reason that your monthly payments are going to be far lower than if you bought it outright. That alone is a pretty big benefit. However, it's not the only one that you'll have.
- Since lease terms only last for a couple of years or so, you can trade-in your car fairly frequently. That means that by the time things start to feel a little outdated, you'll be ready to move on to the next thing.
- Piggybacking off that point, trade-ins are exceptionally easy with a lease. You can just hand over the keys to the dealership, get set up with your next car, and be on your way.
- This relatively quick turnover between cars means that over a course of years, you'll have the opportunity to try several models!
Of course, there are some drawbacks with leasing, too. Namely, the car will come with a cap on miles and wear. If you go over any of these caps, you'll be penalized for it.
The Pros & Cons of Buying
The biggest pro of buying your next car is that you won't have any of the caps that you have with a lease. The car is entirely yours, which means you can do with it as you please.
As a matter of fact, if you want to upgrade your car with new parts or accessories, go for it! Eventually, your payments will be finished, too. When they are, you can drive free and easy without a payment hanging over your head.
Of course, you're committed to that car for many, many years after that. In the end, the responsibility of selling will fall squarely on you.
Visit Our Finance Center
Now that you know the details of leasing and buying a car, you may want to pay a visit to our Gulfport, Long Beach, and Biloxi area finance center.
The financiers at Pat Peck Honda are more than happy to help you drive home in a new car. Fill out a finance application online today to get started!