Buying vs. Leasing a New Acura

The decision of whether it is better to buy or lease a new Acura has no firm, across-the-board answer. The truth is that both options are advantageous for different reasons for different types of drivers. What that really means is, with neither option completely outweighing the other, there is an option that is right for everybody depending certain factors unique to you including budget, credit history, and how many miles you tend to drive. Acura also has current offers and leasing specials, so no matter which option you choose to go with, there will be plenty of options waiting for you on the other side of your decision.

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Leasing a New Acura

2017 Acura RDX

Leasing can be a great way for drivers to take the newest models home with a monthly payment that is often lower than if they were to buy a new car. That’s because when you buy a car, the monthly payment is determined by the total cost of the car. Leasing, on the other hand is different. The monthly payment is determined by the vehicle’s residual value. To help make sense of this, let’s turn to Consumer Reports, which states that, “Lease payments are almost always lower than loan payments because you’re paying only for the vehicle’s depreciation during the lease term, plus interest charges (called rent charges), taxes, and fees.” By making payments toward a principal that is not the total value of the new car but rather the value it is expected to lose at the end of the lease term (which usually runs about three years) your monthly payment will be lower.

In a real-life scenario, it would look like this: If you’re interested in leasing a new car that is priced at $36,000 and is expected to decline by $18,000 at the end of a 36-month lease term, then your monthly payment goes toward that expected loss of $18,000, rather than the full price of the car. This means you would have to pay about $500 a month over those 36 months. To compare, if you were to buy that car priced at $36,000 with a three-year loan, then your monthly payments would go toward that full-price amount, which would come to about $1,000 a month over those same 36 months. So in this case, leasing will result in a monthly payment of about half as much as buying the car and paying off the loan.

Choosing to lease an Acura over another make has an added advantage here for drivers who think that leasing might be right for them. With a commitment to high-quality craftsmanship that has stood the test of time, Acura models tend to lose less value than other vehicles of different brands. By losing less value over a lease term, monthly payments, as well as the total residual value, will fall well below the average.

Other Considerations with Leasing

2017 Acura ILX

Something to factor in when you’re deciding to lease a car is how many miles you typically drive. Lease agreements do come with mileage limits that are derived from the average driver’s habits. But if you typically drive more than the norm, especially long distances that take you far and wide, you might be faced with penalties and fees for exceeding mileage restrictions when you return the vehicle at the end of the lease term.

Coming to the end of the lease term also presents another consideration for some drivers who tend to become attached to their cars and might find it hard to let go when it comes time to return it. There is always an option to buy the car at that point; however, that will require the driver to finance the remaining value of the car.

Additionally, if at any point during the lease term your driving needs change, the commitment of leasing precludes drivers from ending the lease agreement early without penalty. So for drivers who have a lifestyle where a three-year commitment to a car feels cumbersome, you might consider going the route of buying instead.

Buying a New Acura

Acura TLX GT Package

For the driver who prefers to drive their vehicle for as long as possible, and doesn’t necessarily want to lease the newest model every three years or so, buying is a great option and has many advantages. In the long run, although leasing a car results in lower monthly payments, buying a car will result in a lower amount paid overall. That’s because once you have paid off the loan, you own the car outright and can continue to drive it without having to worry about a monthly payment at all.

Drivers who buy also won’t have to worry about exceeding mileage restrictions or facing additional penalties for wear and tear other than the cost of repairs. That can mean peace of mind and the freedom to traverse the open road, wherever it might take you.

Buying a vehicle also translates into more freedom to customize or add accessories to your vehicle, which you wouldn’t be able to do if you were leasing. Because you are expected to return your leased vehicle to the dealership at the end of your lease term, you agree to return the vehicle in a certain condition. But when buying, none of those restrictions apply, so you can do whatever you please to have your car reflect your preferences or sensibility.

Other Considerations

2017 Acura RDX

Depending on how you prefer to pay for things, buying a car with its larger monthly payment can feel like an undertaking. It also often requires a larger down payment upfront than leasing a vehicle would. There may be options to put less money down at the beginning in exchange for a longer loan term, but that could result in higher interest rates.

However, for drivers who have excellent credit, there may be avenues that would prove to be very beneficial and present financing options that could be the perfect balance of a down-payment amount in ratio to the monthly payment. It may take a little bit more research and time exploring loan options to find the one right one for you, so for drivers who are short on time the conciseness of leasing may be more appealing.

That same conciseness and rigidity afforded by leasing also results in a set of agreements of value that are locked in and unaffected by market fluctuations. So, although buying a vehicle gives drivers added freedom from restrictions, it also means you’re on your own and not protected by a lease agreement to insulate your investment. In this case, freedom can mean a vulnerability that some drivers would rather not deal with.

Explore Further

Chicagoland Acura Dealers are here for you every step of the way. Contact us for more information and answers to any questions about whether buying or leasing is better for you given your driving needs, preferences, and lifestyle. Find our dealer location closest to you to visit us in person and to check out and test drive all our Acura models to determine the best fit for you.

Chicagoland Acura Dealers 41.8819, 87.6278.