Buying vs. Leasing – Braman Honda Palm Beach

When it comes to buying or leasing a car, the options can be confusing. So to help our Greenacres, FL, customers make an informed decision, we've provided some helpful information below.

When you purchase a new or used car, you pay for the entire cost of the vehicle. When you lease a new or used car, you pay only for a portion of the vehicle's cost, which is the part you use during the time you drive it.

Buying

Who Owns It

Whether you pay for the car with cash or finance it and make monthly payments, it's yours. Of course, if you're financing it, you'll have to meet the obligations the lender requires, like a certain down payment amount and timely monthly payments. If you don't, they have the right to repossess it.

Up-Front Costs

If you're financing it, the bank will probably request a down payment. You can also trade in another vehicle and use any equity toward your down payment. The amount of the down payment is usually based on the lender's requirements and your credit score.

Future Value

Your vehicle will be worth whatever you can sell it for in the future and that depends on how well you maintain it. (Be smart and protect your investment with regular scheduled maintenance by a factory-authorized facility!)

End of Payments

Once you've paid off what you owe on your contract, that's it. The vehicle is 100% yours. The lending institution will send you a lien release as proof that the vehicle is paid off and all yours.
         

Leasing

Who Owns It

You don't own the car when you lease. You pay to the use the vehicle, but the finance institution that you leased it through actually owns it. This is usually why you pay less per month in a lease than if you were to buy the car.

Up-Front Costs

Leases often don't require any type of a down payment. All you usually have to pay is the first month's payment, a security deposit, the acquisition fee, and other fees and taxes. But, as with a purchase, if you want to lower your monthly payments, you can always pay more up ront.

Future Value

In most leases, you don't end up owning the vehicle so you don't end up selling it either. That's the financial institution's job. However, you may have mileage limits and wear and tear guidelines that, if you exceed them, could cost you extra money when you turn in the vehicle.

End of Payments

Most people return the vehicle at the end of the lease term, but some like to purchase it during their lease or at the end. Others like to trade it in before their lease is over. Just ask us about these different options before signing any paperwork, and we'll make sure you have your lease set up the way you want it.

Best Cars to Lease

The best cars to lease are those with the best book value after the term of the lease. Since they depreciate less, you pay less. Review the lease ratings to see which cars retain their value.


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