Buying vs. Leasing Guide
Buying Vs. Leasing Guide
| Buying | Leasing | |
|---|---|---|
| Money due at signing | Typically, you will be expected to pay at least a down payment (typically around 20% of the total price), taxes, registration and other fees. In the short term, this is the more expensive option. | Usually you will be expected to pay for the first month's payment, a refundable security deposit, taxes, registration and other fees. Some leases may provide the option for a down payment. Leasing is the cheaper option in the short term. |
| Monthly payments | Car loan payments are usually higher than lease payments, since you're paying off the entire price of the vehicle in a relatively short time period. | Lease payments are usually lower than loan payments, since you're primarily only paying for the depreciation of the vehicle. |
| End of term | At the end of the loan term (typically 4-5 years), you will own your car and can use that equity to pay for your next car. | At the end of the lease (typically two to four years), you'll either have to finance the purchase of your car, or start the process over again with a newer vehicle. |
| Personalization | Your vehicle is yours to modify or customize as you like. You can add aftermarket parts, bumper stickers, or a new paint job as you see fit. | Since the lessor will want the vehicle returned in so that it's as easy to resell as possible, any modifications or custom parts you add will need to be removed before you return the car. |
| When it's time to upgrade | You'll have to deal with selling or trading in your car when you decide you want a different one. | You can return the vehicle at end of your lease, pay any remaining costs, and you're free to upgrade to a newer model. |
| Long-term value | Almost all vehicles depreciate over time, but the cash value of your car is yours to use as you see fit. | For leased vehicles, depreciation doesn't affect your personal finances. However, you don't have any equity in the vehicle, so you walk away from the lease emptyhanded. |
Buying vs Leasing Guide at Neil Huffman Acura at Oxmoor
When debating whether buying or leasing a new Acura is right for you? At Neil Huffman Acura at Oxmoor, our finance specialists are here to help. The decision of whether to buy or lease a new Acura can be difficult to navigate, and depends on a number of factors. Whether you just want something nice to for your commute around town, or you looking for your car of the next 20 years, Neil Huffman Acura at Oxmoor has the resources you need to drive home happy. Plus, we offer our signature 7 Day Like it or Exchange it Promise, so you can feel confident you're leaving with no regrets.
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