New Car Lease vs Buy

New Car Lease vs Buy

Why Should You Lease a New Car?

If you prefer to drive newer, safer, more reliable cars, trucks, or SUVs, but prefer not to pay a sizeable down payment every few years, and also don’t travel an exorbitant amount every year, then a new car lease should be best for you. Leasing is ideal for people who prefer to escape the hassle of selling and buying every time they want to upgrade to a new vehicle.

Why Buy a New Car?

On the other hand, if you want long term automotive relationships with a higher sense of ownership and commitment, then buying may be what’s ideal for you. Car-buying is typically best for drivers who will not mind driving the same car or truck for more than five years or even until it’s no longer suited for the street.

Leasing vs Buying: Which One Is Right for You?

Being aware of the pros, cons, and overall benefits of buying vs leasing a car, truck, or SUV is important. Be sure to acknowledge factors such as monthly payments, vehicle ownership, repair costs, and potential savings when calculating the best new car financing type for you.

Buying: Ownership vs Leasing

When considering vehicle financing, new car or truck ownership surely comes along with many advantages, most associated with absolute ownership of the car. You may not realize, however, there are also a few nice advantages to leasing, as well. It’s essential to consider all financial aspects including down payment, monthly payments, term length, buyout payments, interest rate, depreciation, and maintenance & repair costs, before making a decision. A close study of your current financial situation, future needs, and your preference for commitment, will likely ensure that you make the ideal choice between leasing and buying a new car or truck.

leasing vs buying a new car pros and cons

Monthly Payments

Vehicle lease payments are often less expensive compared to car financing and loan payments as the typical lease contract is basically renting with the option to purchase at the final payment of your lease term. Remember when leasing that you are going to need a nice credit score, and will be asked to carry comprehensive and collision insurance, although the same can be said for the lower rate auto loans. Although it could increase monthly payments, it’s also smart to choose a model with the features you need or want, as personal satisfaction is often priceless.

is it better to buy or lease a car

Maintenance & Repair

Auto leasing often includes regular vehicle maintenance & repair. It is important to keep this in mind when calculating monthly costs of leasing vs ownership. No matter what make and model you select, mechanic bills are an unknown cost that can rapidly add up. And for those who are not certified mechanics with a hydraulic jack and full toolset in the garage, leasing might be the best option for peace of mind.

is leasing better than buying

Savings vs Investment

In general, a new vehicle lease saves money in the short term with more affordable monthly payments, while buying gets you a long term investment, meaning full ownership of the value of the car, truck, or SUV at the time it is traded, sold, or paid-off. For best value on a lease, avoid lease return fees for going over mileage, terminating the vehicle lease early, or putting on excessive wear and tear. For your best investment on a purchased/financed vehicle, you can pay it off in a shorter term and also avoid excessive wear and mileage.

Maintenance & Repair CostsTypically IncludedNot Included
Down PaymentSmaller Down PaymentLarger Down Payment
Monthly PaymentSmaller Monthly PaymentsLarger Monthly Payments
OwnershipNo OwnershipPride of Ownership
APR %Credit-BasedCredit-Based
Finance TermApprox. 2-4 YearsApprox. 3-6 Years
Savings/InvestmentShort Term SavingsLong Term Investment
Vehicle CustomizationNot AvailableAvailable
Pre-Owned VehiclesNot AvailableAvailable
Poor Credit FinancingNot AvailableAvailable
New VehiclesAvailableAvailable

Honda Lease and Finance Offers In Beaumont TX

Mike Smith Honda knows that choosing the right Honda car and financing option is never easy. Our team of experienced Honda lease and finance specialist are on hand to help you make the right choice. Visit us online, by phone, or in-person at our dealership location in Beaumont, TX. We look forward to serving you.

I give 5 stars for their professionalism, courtesy and keeping me updated when my truck was in for service. BUT I give 1 star for having to pay to have the transmission tweaked and fluids flushed when my 2019 Honda Ridgeline was running rough. I personally feel that should have been covered under warranty and not charged $298. The reason I bought a Honda was for its known durability and sustainability......😒 I've had the Honda less than 2 years.

Customer: eyeseeu2 lol
Date: 2020-11-26

My experience at Mike Smith Honda was one I will always remember. They have some of the best representatives in the business with quick service, bright smiles, and great deals. I may not be a Honda guy but the Mustang I got from here is amazing and they made sure it was exactly what I was looking for.

Customer: Stephen Fredeman
Date: 2020-10-27

Mike Smith is the go to place for me. I've been to other dealerships and none of the salesmen have been as helpful and customer oriented as Mr Derrick Dawson. He made my experience stress free and very informative. I left completely satisfied with my purchase and experience. I highly recommend Mr Dawson and the mike Smith team.

Customer: Amarilys Ivy
Date: 2020-10-06

Great Service, low interest rate!

This is the second time to make a purchase from Mike Smith Honda, and they had great service once again! They worked really hard to get the payment we need and a low interest rate!

Customer: Jacqueline
Date: 2020-10-01


Excellent fast and courteous service. Brandi is excellent. Appreciated the safety precautions during pandemic and cleanliness of facility. Also the availability of amenities. And ease of checkout.

Customer: Mrs. R. Sanchez
Date: 2020-09-30