Financing a car involves taking out a loan over a specified term with regular monthly payments. At the end of the loan term, you own the car outright. The amount of the loan is based on the purchase price of the car, your down payment amount, interest rate, and other factors. With approved credit, you may even have the option to finance a vehicle with $0 down.
The more money you put down up front, the lower your monthly payment will be for the duration of your loan..
Interest Rate:
An interest rate is the percentage of the loan or credit balance that a lender charges for borrowing money. Essentially, it is the cost of borrowing money.
Credit Score:
Your credit score is a number that represents your creditworthiness. It is based on your credit history, payment history, outstanding debts, and other factors.
The higher your credit score, the more likely you are to be approved for loans and credit cards, and the lower your interest rate will be.
What is leasing:
Leasing a car involves paying for the use of a vehicle over a set term, typically 2 or 3 years. You make regular monthly payments, and at the end of the lease term, you return the car to the leasing company. You do not own the car, but you may have the option to buy it at the end of the lease term.
The cost of a lease is typically lower than the cost of financing a car, but you may have restrictions on use, mileage, and other factors
Lease-To-Own
Lease-to-own is a great way to purchase a car when you don’t have a large budget for monthly payments.
It involves starting with a low-mileage lease with the lowest monthly payment option.
Since you plan on buying the car out at the end of the lease, the low mileage limit won’t be an issue. At the end of the lease term, you can purchase your car directly through Honda. Here at Pure Honda Ferndale, we offer a second option with some additional peace-of-mind.
Rather than purchasing your car directly through Honda, you can purchase it through our dealership as a Certified Pre-Owned Honda.
Your car would go through 182-point inspection to ensure it's in top-notch condition.
Any necessary reconditioning is then performed to get the car up to Certified Pre-Owned standards.
The vehicle can then be purchased as a Certified Pre-Owned Honda, complete with a 7-year/100,000-mile powertrain warranty and up to a 4-year/48,000 mile non-powertrain warranty extension.
Advantages of Financing
Ownership: After the loan is paid off, you own the vehicle outright
Equity: You can build positive equity
No Mileage Limits: There are no restrictions to the amount of miles you may put on the vehicle
No wear & tear penalties
No usage limitations
Advantages of Leasing
Get the latest technology every few years
Don’t rack up miles on a vehicle that you own
You can replace your vehicle before the factory warranty expires
