In recent years, car leasing is the new hype. However, a large number of traditional drivers still prefer by far purchasing their vehicle so they do not have to "pay for nothing in the end," as they say.
Who is right? The answer is very complex. Basically, it's on a case-by-case basis, so it's better to assess your situation. Consultants at Lombardi Honda, a dealer that offers both options at great rates, can certainly help you make an informed choice. Here are some points to consider before you jump in with both feet.
Short, Medium, Long Term
The first question to ask yourself is the following: how long do you plan to keep your vehicle?
Obviously, people who chase after the newest models certainly do not have the same needs as those who simply demand a vehicle to get to work.
If you intend to keep the same vehicle for the next 10 years, buying your car is definitely the best option for you, because if you lease it, you will probably end up paying more than if you have bought it from the beginning through purchase loans, considering the cost of buying back the vehicle plus the monthly payments.
However, if you can’t make up your mind, the buy-back option of your lease car is great, because you do not make a decision right away. After all, who really knows what will happen to him in the next few years?
Moreover, if you intend to leave your vehicle within a short period of time, it is better to consider the car leasing services. Indeed, this would allow you to drive different state-of-the-art models without paying the full price each time, but it is mostly a matter of resale value.
Resale Value and Depreciation Rate
Resale value is the value of your car when you decide to resell it.
This depends on several factors, including the appearance of the car, its history reports, its characteristics, and so on.
For example, it makes sense that a well-maintained used car car with low mileage and lots of additional options is selling at a higher price than a rusty car that went through some accidents.
Apart from these somewhat controllable factors, there is also the depreciation of the car that terribly affects its value.
By definition, depreciation is the decline in the value of your property since its acquisition. On average, a car loses half its purchase value in the first three years, and 10% for each subsequent year.
No vehicle model is exempted, but since there is no absolute fairness in this world, some vehicle brands have a better resale value as they are less affected by the depreciation. This is the case for Honda vehicles, which are recognized for their resale value according to annual evaluations conducted by The Canadian Black Book.
If you lease your vehicle, its resale value is not a concern, because you do not have to worry about reselling it once your lease is over, which is a time and energy-consuming process. Basically, you pay for what you use.
However, this is not as simple when it comes to purchasing your car since you must take into consideration all the factors mentioned above that may lead to a decline in the value of your vehicle. Fortunately, all cars sold at Lombardi Honda have excellent resale value because of the increasing reliability of this car brand.
Mileage and Other Restrictions
Most leases generally have an annual mileage limit coupled with additional premiums in the event of an overrun. Therefore, you have to be very careful about your driving habits before signing your lease. If you plan to go on a few road trips, run away from car leasing or you will end up breaking the bank.
You should also bear in mind that you don’t own the leased car. Therefore, you will constantly get stressed about keeping the car in good condition if you do not want to be charged for any damages made to the vehicle once the lease it over. The insurances of leased cars are also usually more expensive than those of purchased vehicle.
Car lease interest rates and purchase interest rates are certainly not the same.
It is therefore wise to check with your dealer. At Lombardi Honda, we promise to always offer you our best rates, whichever option you choose.
Moreover, our various financing plans available for buyers, including our in-house financing, will allow them to obtain pre-approved loans so that no customer leaves our dealership empty-handed. On-site financing experts will be able to offer you the best plan according to your budget and your lifestyle.
Even if you still have not made up your mind yet, it's not a big deal, because Lombardi Honda promises to never leave its customers disoriented. Our on-site automotive experts are trained and mandated to guide you. They will sit with you and analyze your situation in order to advise you the best options without pressuring you. Come and visit us now to make an informed choice.
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