Buying vs. Leasing
Buying vs. Leasing a Car
Understanding the differences between buying and leasing is key to making an informed vehicle purchasing decision that makes the most sense for your finances, lifestyle, driving routine, and personal preferences.
The following compares the pros and cons of buying and leasing, the economics of each, and why you might choose to finance one way or another. Learn more at our Finance Department.
BUYING
Who Owns It
You can buy a car with cash or finance it and make monthly payments. Either way, it's yours.
If you finance a vehicle, you must meet the obligations required by the lender, such as down payment and timely monthly payments. Otherwise, the lender can repossess the vehicle.
Most drivers finance through a dealership, bank, or credit union to cover the vehicle’s value plus interest over 3–6 years. Check our online financing options for details.
Upfront Costs
Financing usually requires a down payment between 10–20% of the MSRP. You can also trade in your current vehicle to reduce your down payment.
Future Value
Cars depreciate over time, losing roughly 20% in the first year. Buying allows you to build equity if your payments outpace depreciation. Proper maintenance helps protect your investment. Explore our vehicle specials to get more value for your purchase.
End of Payments
Once payments are complete, the vehicle is fully yours, and you will receive a lien release. You can also sell your vehicle back to us when the time comes.
LEASING
Who Owns It
Leasing means you pay for the use of the car, but the finance institution owns it. Monthly payments are usually lower than buying.
Upfront Costs
Leases often require only the first month’s payment, a security deposit, and acquisition fees. Paying more upfront can lower monthly payments. Check our lease and finance options.
Future Value
At lease-end, you do not own the vehicle and avoid selling responsibility. Mileage limits and wear guidelines may apply.
End of Payments
Most return the vehicle at lease-end, but you may purchase or trade it in depending on the lease terms. Our sell us your car page can help with trade-ins.
Best Cars to Lease
Cars that retain value well are best for leasing. Check book values and lease ratings before choosing. Find the latest Honda specials that are great for leasing.
Buying vs. Leasing: Which Is Right for Me?
Deciding whether to buy or lease can be tricky. Our Finance Department can help you evaluate which option fits your budget and driving habits. Contact us online to start your leasing or financing application.
Frequently Asked Questions – Buying vs. Leasing
What is the main difference between buying and leasing a car?
Buying means you own the vehicle outright after paying it off. Leasing means you pay to use the vehicle for a set period, and the finance company retains ownership.
Which option has lower monthly payments?
Leasing typically has lower monthly payments compared to financing a purchase of the same vehicle. Learn more about our finance and lease options.
Can I customize a leased car?
Leased vehicles usually cannot be modified. Any changes may need to be reversed at lease-end, or you could incur fees.
What happens at the end of a lease?
You can return the vehicle, purchase it, or trade it in for another lease or purchase. See our trade-in options.
Is buying a car better long-term?
Buying can be more cost-effective in the long term because you build equity, whereas leasing avoids long-term ownership but has mileage and wear restrictions.
Can I finance a lease buyout?
Yes. Many dealerships offer financing options if you decide to purchase the vehicle at the end of your lease. Apply online at our financing page.