Leasing vs. financing: a quick comparison
- Leasing can be a good fit if you prefer lower monthly payments and want to drive a newer vehicle more often.
- Financing may be better if you want to keep your vehicle long-term, drive more miles, and build ownership equity.
Leasing vs. financing differences
| Category | Leasing | Financing |
|---|---|---|
| Ownership | You return the vehicle at the end of the lease term. | You own the vehicle after the loan is paid off. |
| Mileage | Typically includes annual mileage limits. | No mileage limits. |
| Customization | Usually limited. | More freedom to customize. |
| Long-term Value | No equity. | Equity may build over time. |
Frequently Asked Questions
Still weighing your options? These FAQs cover common leasing and financing questions. For more guidance, visit our Finance Center.
Q: What if I don’t have a lot of money to put down?
A: Leasing a Honda is a great way to access a more luxe vehicle for less, because this option requires a lower down payment if it requires one at all. Additionally, monthly leasing payments are generally lower than monthly car loan payments.
Q: I plan on driving my car for the next several years – should I lease or finance?
A: If you’re the type that drives a car until it’s ready to retire, you’ll want to finance your Honda. You’ll eventually reach the point where you own your vehicle and will no longer have to make payments – then you can either trade in your vehicle or keep on driving it once you’ve gained equity.
Q: If I want the latest advanced tech and features, should I buy or lease?
A: Those who are constantly searching for the best technology available would be better suited by leasing a car. This way, you can play with the latest gadgets and infotainment without worrying about your vehicle becoming outdated. Leases typically last three years or less, so you’ll be able to regularly access the newest features.
Q: Can I customize my car when I lease?
A: When you lease a car, you won’t be able to customize it because it belongs to the dealership. Financing a car gives you the freedom to make any changes as you wish. If you plan on detailing or accessorizing your future Honda, you’ll want to opt for buying instead.
Q: What if I don’t want to deal with the maintenance and repairs?
A: If you don’t want the trouble of dealing with car maintenance, leasing is a great option. Aside from getting regular oil changes, you won’t need to worry about most repairs because your vehicle will be under warranty during the lease period.
Q: If I drive a lot, should I buy or lease my next car?
A: If you log a lot of miles, you’ll want to choose financing. When you lease a vehicle, you’ll typically have mileage limits that could end up being a hassle if you want your driving situation to accommodate your everyday commute as well as the occasional road trip or weekend adventure.
