Should You Lease or Buy Your Next Honda?
It's one of the biggest decisions you'll make at the dealership. We'll break down the real differences — monthly payments, long-term costs, flexibility, and ownership — so you can choose what's right for your lifestyle and budget.
Lease if you want lower monthly payments, always drive a new Honda with the latest features, and prefer flexibility every 2-3 years. Buy if you want to build equity, drive unlimited miles, customize your vehicle, and keep it long-term. Most Columbia and Lexington families who drive 12,000+ miles annually benefit from buying.
Leasing vs Buying: Side-by-Side Comparison
See how the two options stack up across key factors.
| Factor | Leasing | Buying (Financing) |
|---|---|---|
| Monthly Payment | Lower (typically 20-30% less) | Higher |
| Down Payment | Often lower or $0 | Typically 10-20% recommended |
| Ownership at End | Return vehicle (or buy it) | You own it outright |
| Mileage Limits | Yes (typically 10-12K/year) | No limits |
| Customization | Not allowed | Full freedom |
| Warranty Coverage | Always under warranty | Warranty expires (3yr/36K) |
| Maintenance Costs | Minimal (new car) | Increase over time |
| End-of-Term Options | Return, buy, or lease new | Keep, sell, or trade |
| Equity Building | None | Yes — value is yours |
| Total Long-Term Cost | Higher if you always lease | Lower if you keep 5+ years |
| Credit Requirements | Generally higher score needed | More flexible options |
| SC Sales Tax | Pay only on monthly payments | Pay on full purchase price |
How Honda Leasing Works
Understanding the basics helps you make a confident decision.
When you lease a Honda, you're essentially paying for the vehicle's depreciation during your lease term — not the full purchase price. That's why monthly payments are lower. At the end of your lease (typically 24-36 months), you have three options:
- Return the vehicle and walk away (or lease a new Honda)
- Purchase the vehicle at the predetermined residual value
- Extend your lease on a month-to-month basis
Honda Financial Services offers competitive lease programs through our dealership. As your local Honda dealer serving Columbia, Lexington, and Irmo, we'll help you understand current lease specials and find the right terms for your budget.
How Buying (Financing) Works
The path to ownership and long-term value.
When you finance a Honda, you're borrowing money to purchase the vehicle. Each monthly payment builds equity — ownership stake — in your car. Once you've made all your payments (typically 48-72 months), you own the vehicle free and clear.
- Build equity that you can use toward your next vehicle
- No mileage restrictions — drive as much as you want
- Customize freely — wheels, accessories, modifications
- Keep it forever — years of payment-free driving after payoff
Steve Padgett's Honda of Lake Murray works with Honda Financial Services and multiple lenders to find competitive rates for buyers across the Midlands. Whether you have excellent credit or are rebuilding, we have financing solutions.
Leasing May Be Right for You If...
- You drive less than 12,000 miles per year
- You want the lowest possible monthly payment
- You prefer driving a new car every 2-3 years
- You want the latest Honda safety and tech features
- You don't want to worry about selling or trade-in hassle
- You use your vehicle primarily for business (tax advantages)
- You prefer predictable, warranty-covered maintenance
Local Consideration
If your daily commute in the Columbia metro area is relatively short — say, Irmo to downtown Columbia or Lexington to Lake Murray — leasing can work well within mileage limits. Many of our Lake Murray customers who work locally find leasing fits their lifestyle perfectly.
Buying May Be Right for You If...
- You drive more than 12,000-15,000 miles per year
- You want to own your vehicle outright
- You plan to keep your car for 5+ years
- You want to customize with accessories or modifications
- You prefer building equity instead of continuous payments
- You have kids who may use the car later
- You want flexibility to sell or trade whenever you choose
Local Consideration
If you regularly commute from Lexington to Columbia, travel to Charleston or Charlotte frequently, or take family road trips to the coast, buying typically makes more sense. High-mileage drivers in the Midlands benefit from ownership's unlimited miles and long-term value.
Real Cost Example: Honda CR-V
Hypothetical comparison over 6 years. Actual terms vary.
Leasing (Two 3-Year Leases)
- Monthly payment: ~$350
- Total over 6 years: ~$25,200
- Ownership at end: $0 (no equity)
- Always drove a new CR-V
- Never paid for major repairs
Buying (6-Year Loan)
- Monthly payment: ~$500
- Total over 6 years: ~$36,000
- Ownership at end: ~$18,000+ (vehicle value)
- Net cost: ~$18,000
- Years of payment-free driving ahead
*This is a simplified example. Your actual payments depend on credit score, down payment, trade-in, and current incentives. Our finance team will provide exact numbers for your situation.
South Carolina Tax Considerations
How state taxes affect your decision.
In South Carolina, sales tax treatment differs between leasing and buying:
- Buying: You pay sales tax (capped at $500) on the full purchase price upfront
- Leasing: You pay sales tax only on each monthly payment
South Carolina's $500 sales tax cap on vehicle purchases is one of the lowest in the nation, which actually makes buying more attractive here than in many other states. This is an advantage for Columbia, Lexington, and Irmo buyers compared to neighboring states like North Carolina or Georgia.
Lease vs Buy: Common Questions
Answers from our finance team.
What credit score do I need to lease a Honda?
Honda Financial Services typically prefers credit scores of 680+ for the best lease terms. However, we work with customers across the credit spectrum. If your score is lower, buying with a subprime loan may be easier to qualify for than leasing.
Can I buy my leased Honda at the end?
Yes. Every Honda lease includes a purchase option at a predetermined residual value. Many of our customers choose to buy their leased vehicle — especially if they've kept it in great condition and driven fewer miles than allowed.
What happens if I go over my lease mileage?
You'll pay a per-mile fee (typically $0.15-$0.20/mile) for excess mileage at lease end. If you know you'll drive more, we can often negotiate higher mileage limits upfront for a slightly higher payment.
Is it better to put money down on a lease?
Not always. With leasing, a large down payment reduces monthly payments but doesn't build equity. If the car is totaled, you could lose that down payment. Many financial experts recommend putting little or nothing down on a lease.
Can I get out of a lease early?
Yes, but there are costs. Options include paying an early termination fee, transferring the lease to someone else, or trading in and rolling remaining payments into a new vehicle. Our finance team can explain your options.
Do you offer lease specials for Columbia area residents?
Yes. Honda regularly offers lease incentives, and we have additional programs for customers in Columbia, Lexington, Irmo, and throughout the Midlands. Contact us for current specials or check our website for updated offers.
Let's Find Your Best Option
Our finance team will run the numbers for both scenarios — no obligation.
Get Pre-Approved Online
Complete our secure credit application in minutes. We'll show you real payments for leasing AND buying so you can compare.
Start Application →Talk to a Finance Specialist
Prefer to discuss your situation in person? Our finance team is here to answer questions — not pressure you into a decision.
Call (803) 392-0488Serving Columbia, Lexington & Irmo Drivers
Steve Padgett's Honda of Lake Murray — Your trusted Honda dealer in the Midlands since day one.
750 Western Ln, Irmo, SC 29063 · (803) 392-0488 · View Hours