A lot of people are hesitant in choosing to lease vs buy when it comes to securing their next vehicle. Their main reasoning is that they can choose to own a car and get some of their investment back by selling it if they decide on purchasing. So why lease a car in the first place?
For people who have certain personal, financial, and lifestyle preferences, leasing a vehicle can provide many advantages. Let’s take a look at some of the biggest benefits of choosing to lease a car in Paris, TX.
A major advantage that leasing has over buying is that you’ll normally have lower monthly payments that are easier to manage. Choosing to finance a vehicle means that you’ll need to pay for the total price by the end of the purchase agreement. Lease payments are calculated in a different manner.
Rather than settle the payment of the entire car’s value, you’ll only be covering the depreciation of the vehicle including tax and rent throughout the lease term. This means that you’ll have to pay a significantly lower monthly payment than when you purchase a vehicle through a loan.
Such savings can be extremely beneficial since you get to upgrade to a newer model easily or save on cost each month.
Most vehicle purchases through a car loan will require buyers to make down payments of at least 20% of the total price. In a lease, you can expect little to no down payment at all.
You’ll usually just need to pay for the monthly payment, taxes, and registration fees, and then you’re good to go. Sometimes an acquisition fee is necessary when signing the lease.
Overall, the cost is dramatically less than the down payment required in buying a new car through financing.
The terms in a lease are often short so most of the repairs that will be made on a vehicle will still be under the coverage of the manufacturer’s bumper-to-bumper warranty. There are even instances where the manufacturer will also take care of maintenance expenses.
That’s why as you review a lease agreement as well as the warranty/maintenance deal, make sure that you understand everything correctly. You want to have all repairs and maintenance covered by the manufacturer so you can avoid unexpected bills.
Should you lease or buy a car? The answer will depend on what you need. Leasing offers many benefits as you can see above.
If you’re looking to lease a new or used Honda vehicle in Paris, TX, then Mathews Honda of Paris is the one for you.