Should I buy or lease a new car?

Owning a Honda can be a great investment. If you take care of it, you may not need to buy another car for years, or you may be able to sell it for a good price when you opt for something new (make sure to come back to us in Savannah, GA). Because there are no restrictions, you'll be able to drive as much as you want. And you can customize your car with accessories, add-ons, paint, bumper stickers, or aftermarket performance enhancers.

Who owns it? The car is yours and only yours. You might pay for it with cash, or make payments under a financing plan. If you're financing the Honda, your lender will require you to meet certain obligations, such as monthly payments or a down payment. Otherwise, your car can be repossessed.

Up-front costs: Financing a Honda means the bank or lender will need an initial payment from you, which is usually calculated according to your credit score, among other factors. You may also choose to trade in your old vehicle, the value of which can be put toward your down payment.

Future value: While the value of a new Honda begins to decrease, you may be able to sell your car for a fair price as long as you maintain it properly. It's important to visit a factory-authorized service facility at regular maintenance intervals for this reason. Even a car in rough shape may be sold for parts or scrap.

End of payments: You'll pay the amount stipulated in your contract, and once you're done, that's it. The institution you borrowed from will send you a lien release, which is proof that the vehicle belongs entirely to you and may not be repossessed for nonpayment. The vehicle is now yours.

Leasing a Honda is much cheaper than buying it outright, because you're only paying a percentage of the total price. You won't have to worry about getting a good price or finding a buyer when you're done, as the dealership will take it back from you. If you like to have the newest technology in your car, leasing may be your best bet, as you can regularly upgrade to drive the latest models. You may also be able to drive a nicer car than you could normally afford.

Who owns it? The institution through which you are leasing the Honda retains ownership. You're essentially renting the vehicle. Your contract will state that you're using the car for a set amount of time in exchange for a set amount of money.

Up-front costs: A lease doesn't typically require a down payment, but you will have to provide the first month's payment along with a security deposit, acquisition fee, and any other applicable costs. It's possible to lower your monthly payments by increasing your initial payment.

Future value: Because you don't own the car, you will turn it in to the leasing agency at the end of your lease. Pay close attention to any mileage restrictions or wear-and-tear guidelines, since excessive use may cost you extra when you return your vehicle.

End of payments: You usually just return the vehicle when your lease ends. However, you may be able to purchase it during or after the term of your lease, or trade it in before the term is over. If you think you might want any of these options, ask your financing agent about them before the lease is signed.

Best cars to lease: The amount you'll pay for a lease is based on how long you'll have the car and how much it will depreciate once you've driven it, so the most affordable leases are on cars that hold their value after the lease is up. You can review lease ratings to see which cars depreciate quickly and which stay valuable.