On the downside, buying a vehicle usually requires a higher down payment. Monthly payments are usually higher as well as you’re paying off the entire value of the car. Once the warranty is up, all repairs come out of your pocket. Selling the vehicle in the future is also your responsibility.
A lease is essentially a long-term rental. You pay the difference between the new car value and the car’s predetermined value at the end of the lease. That can lead to lower monthly payments. You aren’t responsible for selling the vehicle at the end of the lease and a warranty will likely last the duration of the contract.
Several drawbacks to leasing a car include limits on how much you can drive, what modifications you can make, and you aren’t building any equity. While you can buy the car the end of the lease, doing so could cost you more than the car is worth.
For more information on whether buying or leasing is the right option for you, feel free to contact Floyd Traylor Honda today. Our friendly finance department is always here to help.