Is it Better to Lease or Buy a Car?

If you’re dreaming of being behind the wheel of a new Honda in Billings, you might be wondering, “Is it better to lease or buy a car?” We get that question often here at Underriner Honda, and we’re always happy to help. When deciding to lease or buy a new vehicle, the best choice depends on your specific financial situation and driving preferences. Learn more below, and don’t hesitate to contact us if you have any questions.

Lease or Buy a New Car: Long and Short-Term Costs

• Car Leasing Benefits: If you’re watching your budget, and most Cody drivers are, leasing provideslower monthly payments. You will also save money on taxes, repairs, and your down payment if you lease a car. Plus, your monthly car payment probably won’t go up much if you get a new lease every few years.
• Car Buying Benefits: Eventually, you’ll eliminate your monthly payment altogether. Buying a Certified Pre-Owned Honda is sometimes more affordable than leasing a new vehicle because when you pay off your car loan, you’ll spend less in the long term than a driver who continually leases. Keep in mind though, that repair costs typically increase the longer you own a car.

The Bottom Line: Most Laurel drivers only keep their cars for about three years and like having the latest features. If that sounds like you, leasing versus buying is probably a good choice. Reach out to the helpful finance team at Underriner Honda to explore all of your finance options in more detail.

Lease or Buy a New Vehicle: Mileage Restrictions

When deciding, “Should I lease or buy a new car?” consider the number of miles you typically drive around Red Lodge and beyond each year.

• Buying a car means you won’t need to worry about any restrictions or limits on the number of miles you drive.
• Leasing a car requires that you stay within certain strict mileage limits per year. If you go over the mileage limitations, you’ll have to pay a fee at the end of your lease term.

The Bottom Line: If your daily commute around Billings is reasonably short, a lease may be best. But, if you enjoy long road trips, you should buy a car versus lease one.

Lease or Buy a New Car: Total Ownership and Customization

• When you buy a car, you can customize it the way you want with auto accessories. You should always check to make sure it won’t void your warranty, though.
• When you lease a car, you must keep your vehicle close to its original factory condition because the dealership is the legal owner, and they’ll need to resell it again when your lease is over.

Is it Better to Lease or Buy a Car: Other Things to Consider

• Financing a car offers more flexibility. When you buy a car with an auto loan, you can sell or trade it in at any time (as long as its value is more than what you owe on it). You are also free to refinance to a lower interest rate. 
• Leasing is convenient and straightforward. When you lease your car, all you need to do is take good care of the vehicle while you drive it. Once your lease term expires, drive it back to the lease return center at Underriner Honda and go home in your new Honda model. If you love your car and want to keep it, you always have the option to buy it.

The Bottom Line: The ease of leasing is a crucial benefit for many drivers. Still, if you don’t mind maintaining and reselling your car, the funds you receive for trading in the car you own may help offset some of the future costs. 

Explore All of Your Financing Options at Underriner Honda

If you still have questions about leasing pros and cons, reach out to the finance specialists at Underriner Honda. We look forward to helping you explore all of your car financing options today. Browse our new vehicle specials and give us a call! We’re here for you!