American Honda Finance - Buy or lease?
If you are looking into getting a new vehicle, you may consider whether you want to buy or lease. American Honda Finance offers financial services that can help you decide which option is best for you.
If you plan to keep a vehicle for five to ten years or more, buying is probably the best option for you. If you choose to buy, financing is available for nearly all the products available including Acura vehicles, motorcycles, ATVs, and power equipment. American Honda Finance can provide you with competitive rates and terms that will meet your needs. You can even have convenient online access to your account.
When using traditional financing to buy a vehicle, you and the dealer that is selling you the car will agree on a down payment and the term (how long you will be financing the vehicle). A monthly payment will be calculated based on the purchase price, term, and annual percentage rate (APR). You can even apply for pre-approval online through American Honda Finance.
When financing your vehicle through American Honda Finance, your payments will be part principal and part interest. In the beginning of the term of your loan, the payment covers mostly the interest, but as the term progresses over time, a larger portion will go towards payment of the principal amount. In turn, the amount of interest paid decreases. The more you pay in principal, the more equity you have built in your vehicle. At the end of your term, or when the full amount is paid, you will be the proud owner of your own vehicle.
But what about leasing? American Honda Finance offers information and advice about leasing a vehicle. When leasing a vehicle through American Honda Finance, you use the vehicle for the first and best period of the life of the vehicle. You pay a monthly payment that is usually lower than traditional financing. This payment covers the depreciation of the vehicle, plus a service fee. When you lease, your mileage is limited to 12,000 to 15,000 miles per year. You can purchase extra miles up front to save excess mileage charges at the end of your lease.
Your monthly lease payment is determined by the term of the lease, a capitalized cost that is based on the purchase price, the vehicle’s projected value at the end of the lease, and a service charge. You can pay a down payment to lower your monthly payment. Just as with traditional financing when buying a vehicle, you can apply for pre-approval online through American Honda Finance.
At the end of the lease period with American Honda Finance, you can purchase the vehicle at a predetermined price, or you can return the vehicle and take care of anything you are obligated to pay at the end of the term. If you return your vehicle, you may choose to lease another vehicle. American Honda Finance offers a Leadership Leasing Loyalty program that makes it easy to lease another vehicle immediately after the end of a lease.
Begin by checking out American Honda Finance online for more information, so that you can make the best choice for your vehicle needs.