Should I Lease or Finance My Honda?

October 12th, 2018 by

There are many factors involved in the decision to lease or buy a Honda, but perhaps the two greatest factors are what monthly payment you can afford and how long you plan to drive the vehicle.

If you like a new car every three years or so, and prefer a lower monthly payment, leasing will be the best choice. A lease is structured so you are paying for the depreciation of the vehicle during your lease agreement. If you return the vehicle in good condition, maintain it per the manufacturer’s guidelines, and don’t exceed the mileage restrictions, you should have no additional expenses at the end of the lease. You can turn in the vehicle and start a lease on a new current model year vehicle. Here are the primary advantages of leasing:

2019 Honda Insight

Drive a new vehicle under warranty for the term of the lease

  • Less cash needed at the start of the lease
  • Lower monthly payment
  • Guaranteed residual value at the end of the lease
  • Possible tax advantages for business use
  • If you drive a lot of miles each year, plan to keep the vehicle for perhaps 5-10 years, and don’t want to be subject to mileage restrictions, then purchasing and financing the vehicle is your best option. When you buy your new Honda from Millennium, you can drive it as much as you wish. The vehicle will come with the same initial manufacturer warranty, and in many cases you can purchase additional coverage if you plan to keep the vehicle longer. You aren’t subject to the same wear and tear conditions as for a leased vehicle, although keeping it in good condition will help improve the resale or trade in value later on. The primary advantages of financing include:

  • Keep the car longer if you like it and get the most use from it
  • Equity of ownership
  • No mileage restrictions
  • You can customize or change parts without lease penalties
  • If you would like to discuss leasing versus financing your next Honda, come to Millennium Honda and talk with our sales professionals. We can help you through the process and get you the best deal possible on your new Honda vehicle. Visit us today at 286 N Franklin Street in Hempstead!