What's the Difference Between Financing and Leasing?

One of the most common questions we get here at Great Lakes Honda pertains to the differences between financing and leasing. More importantly, many of our customers want to know which payment option is best for them, and why.

The answer to the latter part of this question that we receive isn't a concrete one: deciding which option is best for you depends on your personal preferences, and your budgetary situation. However, understanding the former part of this question can help you deduce which option is best for you.

So what are the differences between financing and leasing?

Financing vs. Leasing

Financing is pretty simple to think about: when you finance a vehicle you are buying it. Generally what happens is you find a vehicle you like, and you then apply for an auto loan which will cover the initial cost of said vehicle. Then over, the months (and while you are driving your vehicle around) you pay down that loan in monthly installments. Once the loan is paid off, you own the car! Congrats!

Leasing is a little bit different. You do not own the vehicle; instead you pay a predetermined amount per month for the privilege of driving it. Additionally, there are parameters around mileage and damage. However, leasing can be more affordable on a month-to-month basis, and is great if you are looking for a short-term vehicle for professional purposes, or for inner city personal purposes.

In short, financing is great for people who want to own their car, and for those who drive a lot, or drive extensive distances. Leasing is great for those who may not want to buy a vehicle, or just need a short-term driving option and don't mind the parameters incorporated with their lease.

Still Have Questions? Visit Us Today!

If you would like us to expound on any of this information, or if you would like to explore financing or leasing a vehicle on our lot, please feel free to visit us at Great Lakes Honda, located in Akron, OH. Our team can discuss certain details, answer questions, and help you set up a test drive with a specific Honda model.

We proudly serve drivers through Akron, Cuyahoga Falls, Medina, and Stow, OH.

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