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Personal Finance Advice You Can Count On.

We make it easy to do everyday banking at Horizon, but everybody still needs some sensible advice from time to time to help with their goals and strategies for saving, investing wisely and making the most out of your financial journey. That’s why we provide fresh advice topics to help you along the way.

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To Buy or to Lease

Couple at car dealership

What’s the best option for your new vehicle?

Shopping around for new vehicles can be both exciting and daunting. And one of the biggest decisions playing into your final choice may be whether to buy or lease.

Which one is right for you? Here’s a quick guide to help you figure it out:

OwnershipOwning your vehicle means that once you’ve paid it off, you may be able to go years without a car payment. That money can be saved toward a new vehicle, or put toward other life expenses. When a lease term is up, most people move on to another lease. So their monthly payment never really goes away. But it’s a choice some people make in order to have an updated, current vehicle.

LimitationsWhen you own your own car, you can use it as much as you need or want to. If you put lots of miles on your vehicle, it may get you a little less money when you resell it, but this may not be a big concern for you.

Leased vehicles have annual mileage restrictions — so if you have a long work commute, or plan to take long road trips, a lease may result in additional fees once your term is up.
Up-Front Costs

You can keep monthly payments down by making an up-front down-payment on your new or used vehicle. You’ll also be paying for taxes, and license plates/registration. 

Up-front costs may include your first month’s payment, a security deposit (which may be refunded when you complete your lease), a down payment and/or acquisition fee, as well as the usual costs for taxes and license plates/registration.

Moving UpOnce you finish making payments, you own your car. Which means that any money you get by reselling it, is yours to apply toward your next vehicle when you’re ready to move on.

At the end of your lease, you can choose to lease a brand-new car with the latest features and technologies. Or you can buy-out the existing car with a new financing option. But you won’t have any equity to keep for yourself.

PersonalizationBuying a car allows you to customize your car in any way you want (though some modifications may void your warranty). A leased vehicle will typically be turned back in when your term is complete. That means you have to keep it in condition for another person to use it after you — and modifications will need to be removed. 


Want to compare apples to apples? Talk to us about an auto loan today, so you can decide the right direction for your unique needs.


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