There are a lot of financial options and considerations to factor in when you’re in the market for a new or used car, truck, or SUV. One of the most common questions the professionals in our finance center hear from our Austin area customers is, “Should I buy or lease a car.” The truth is there’s no one-size-fits-all answer, as the best option is dependent on your financial situation and your vehicle needs. However, the better you understand leasing vs. buying the easier it’ll be for you to make your decision.
The most common option for people on the market for a new vehicle is to buy their vehicle, so let’s look at buying first. When you buy a vehicle, you either pay for it outright or finance it through a bank or other financial institution. Most people finance their vehicle since the vast majority can’t afford to pay tens of thousands of dollars for a new vehicle upfront. When you finance a vehicle, the lender pays the dealer, and you pay the lender the value of the car plus the interest they charge for the loan. The lender owns the vehicle until you finish making your payments, but you can sell the vehicle to recoup some of the money you invested in it, and put that towards your next vehicle. Your interest rate will depend on factors, such as:
When you lease a car, you’re agreeing to rent it for a period of time rather than making payments with the goal of owning it. At the end of your lease term, you have the option to swap your current lease for a new one, extend the current lease, end the lease, or finance the rest of the car’s value. Here are some of the benefits of leasing vs. buying:
Now that you better understand the differences between leasing vs. buying, if you’re ready to get behind the wheel of a new car, truck, or SUV, check out our new vehicle inventory to see what piques your interest. Also, be sure to look browse our new vehicle specials for chances to save on your next purchase. We also have a wide selection of used and certified pre-owned Honda if that’s more your speed. And, if you have a vehicle you’d like to trade towards the purchase of your next one, you can get an offer for it instantly using the
“What’s My Car Worth” tool on our website.
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