You have finally decided on what car you want to purchase – but you’re not sure if you should lease or buy. Leasing is a solid option for financing, but many people don’t fully understand what it means. This guide looks to answer the more common questions people have about the leasing process, so you can feel confident as you make your decision and be driving around Kansas City, MO, in a new car in no time.
Think about leasing a car as if you are renting it for a certain period of time. It’s a very similar type of situation. As a lessee, you will pay money to the lessor – typically the car dealership. This payment will allow you to use the vehicle for an agreed-upon term, usually two or three years. While you are driving, you will have to keep your car under a certain set of miles and keep it in tiptop condition, or you could be charged fees when you return it.
The biggest benefit of leasing a vehicle is that it’s one of the less expensive options for getting a new car. It is considerably cheaper than purchasing a vehicle outright, giving you flexibility with your budget. This is because you’re not paying for the car’s full value when you lease; instead, you are only paying for the difference between the vehicle’s current value and the value that it is expected to have when you return your vehicle after your lease is over. With this lower price, you will find that your monthly payments are smaller, as is the amount needed for your down payment.
Another benefit of leasing is that your vehicle will always be under warranty. This warranty can give you plenty of savings over the course of your car ownership, allowing you to keep up with maintenance at little cost to you. A lease also means you will get a brand-new car every few years – including the most up-to-date technologies.
If you’re ready to start the leasing process — or if you want to learn more — don’t hesitate to contact us at Honda of Tiffany Springs.