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What You Need to Know About Leasing a Car

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When it comes to getting your next car, you have a lot of options. You can buy a new or used vehicle or you can lease a vehicle. What you decide to do depends on a couple key factors. To help you unravel it, we’ve put together this short article on exactly what you need to know about leasing a car and how to decide if it’s the best option for you. Check it out now!

Finances

Those new to leasing a vehicle are often under the impression that leasing a car is cheaper because they don’t have to put any money down. In actuality, the down payment situation in any comparable new car buying/leasing scenario is about the same. The amount of money you’ll put toward your car depends on your credit situation and how long you keep the vehicle.

Traditionally, when you purchase a vehicle, you make a 20% down payment. This tells the lender that you’re willing to make a significant investment and makes you a lower risk for them. As a result of this decreased risk, you’ll likely get a lower interest rate and better terms. Those with exceptional credit know that if you have great credit, you actually don’t have to make a down payment. But it still helps to save you money in the long run.

Leasing a vehicle has a similar requirement. Depending on your credit and financial history, you may have to pay a signing fee. This is usually a percentage of the lease agreement for the term you’ve chosen. Unlike when you purchase a vehicle, the payments you make toward your lease agreement are only paying off that agreement and not to paying off the loan.

Term

One of the huge benefits of leasing a vehicle vs. buying a new vehicle is the fact that when you make a leasing agreement, you don’t have to worry about selling the car afterward. It’s the perfect situation for those looking to keep their vehicle for two to three years and then get a new vehicle again. You’ll end up paying about the same amount and you won’t have to worry about things like depreciation when you’re over the vehicle and ready for something new.

Buy or Lease with Braman Honda of Palm Beach

There are many pros and cons to both leasing and buying, but if you’re a good driver with decent credit who takes care of their vehicles, then leasing is likely a good scenario for you.

Are you ready to take a look at the leasing options at your local Honda dealer near Palm Beach, Greenacres, and Boca Raton? Braman Honda of Palm Beach is conveniently located at 5200 Lake Worth Road in Greenacres, FL.

Our team of knowledgeable, friendly, and helpful sales professionals will be happy to help you through your entire journey. Stop by our showroom any time Monday through Friday from 9 am until 9 pm, Saturday from 9 am until 8 pm, or Sunday from 11 am until 6 pm. Or give us a call now to schedule a test drive.