Choosing between buying and leasing of a brand new car has always been a hard nut to crack. In the first place, buying is too costly, but makes you the owner of the car; on the other hand, leasing involves paying a certain amount for a given period of time.
When leasing a car the monthly payments are low. The cost of repairing the car when damaged is included in the warrant. Not only do you have to change the car after every year but you are also able to get a good car with less money. In addition, the tax to be paid is reduced.
One of the cons for leasing a car is that you don’t become the owner of the car. ”The mileage is limited between 12,000 to 15,000 miles a year.” (Siu). Exceeding the mileage leads to extra charges per mile. Moreover, the lease contracts contain unfamiliar terms which leads to confusion and at the end you will have to pay much more for the leased car than if you had bought the car and still have it for a long period of time. In case of any dents or tears, charges will be applied accordingly. It also becomes more expensive to end the lease early if need be. For example, if you get a job transfer overseas.
In reality, buying a car is more preferred to leasing, after purchasing a car you have the flexibility and the ability to do any modifications on the car, and you can also save the money which you could have used for the monthly payments if you had leased. To add on that, you can be able to drive as much as possible since there is no limit in mileage. There is also a possibility of trading in the car for a new one.
In this case, the price of buying 2018 Honda Accord sport according to Cars Direct is “ $35,790(base); $35,790(as tested), an APR OF 3% has been achieved compared to the previous 5.5%.this means that 1.5litre LX trim level is $249 for 36 months and $2,399 at signing. The reduced price for lease which is $800 at signing makes it effective to lease as the cost has dropped with $22 from $338 to $316. The price has been reduced with a difference of $ 1,100 making it at $249 for 36 months with $2,699 at signing down from $3,799, the monthly payment has been reduced from $395 to$364.” (Siu)
Although this may be true, leasing makes one enjoy the luxury not putting in mind the high price. When one leases a car they are held responsible for matters pertaining to the condition of the car. Furthermore, dealers in some places do not prove how they came about with the lease prices they have but one can always note some variables. Also, insurance for comprehensive coverage should always be incorporated in the lease.
To sum it all leasing is costly compared to purchasing. In the long run, after comparing the pros and cons of purchasing or leasing a car it is preferable to buy a brand new 2018 Honda Accord sport.
Works Cited
Siu, Jason. 2018 Honda Accord Lease Price Cut as Sales Struggle. 12 April 2018. Article. 27 April 2018. .
