Why Leasing May Be Better than Paying Cash for your Honda
You could be someone who likes to pay for their vehicle in cash. You don’t want to rely on borrowing money for your possessions, no matter how important they may be. Is there a better way to use your money, though? Can you make your cash flow work for you to enhance your lifestyle or provide a more secure future?
Leasing your Honda could be your answer.
Leasing isn’t just for businesses.
It provides a viable vehicle ownership option for people from all walks of life. Whether you can afford to buy your Honda outright or need to secure the lower payments to make ends meet, or if you use your Honda as a company car, leasing could be the best choice in your situation.
- Leasing has competitive interest rates
In nearly every circumstance, Honda leases have a lower interest rate than you can achieve on even the most modest of investments. If you have extra cash, you can put it to work in an investment portfolio or RRSP. It will earn you more invested than it saves you in the interest you pay on your Honda lease.
- You only pay for the portion of the car you use
If you pay cash for your Honda, you’re paying for 100 percent of the car no matter how long you own it. A lease means you only pay for the portion of the car’s life that you actually use. You can use the extra money you keep for more important things in life.
- Leases are great for business
If you are a business owner, leasing can prove to be a much better way of obtaining a company car than paying for your Honda in full. With low payments instead of using a chunk of cash from your business, you can afford to invest in business promotion or operations that can make you money. Leases are often the best way to write off your company car for income tax purposes as well.
- You save on depreciation
Although Honda values depreciate at a slower rate than most cars, your Honda still won’t increase in value. If you pay cash for your Honda, that depreciation is YOUR money ebbing away. With a Honda lease, you don’t have to worry about the rate of depreciation. When your lease is complete, you can turn it in without a concern for its depreciation.
- You aren’t tied to your car purchase
If you decide to pay cash for your car and want to upgrade in the future, you’ll have to deal with either selling it or trading it in. With a lease, it’s simple. You can choose to easily upgrade to the newest model once your lease is up by just starting a new lease.
- You can buy your lease in the end
At the end of your Honda lease, you might decide you don’t want to part with your car. If that’s the case, you can buy it out through financing at a competitive rate or paying cash. In the meantime, you’ll have saved money with low payments by using your cash flow in other ways, whether you start a savings account, RRSP, or pay down your mortgage.