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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.

Looking for specific advice? Use our search feature to explore our various topics.

Couple in car

Buying vs. Leasing your Next Car

To Buy or to Lease: What’s the best option for your new vehicle?

With new and used car prices soaring due to shortages, you will want to shop long and hard for the best deal for new vehicles. Before you buy, research prices using sites such as Autotrader, KBB, Cars.com, CarGurus.com, and TrueCar, as they will give you a strong idea of where the market is. Per Kiplinger, these sites will offer algorithmically derived labels like “Great Deal” or “Overpriced.”

After you’ve chosen the car, your next decision might be whether to buy or lease. Which one is right for you? Here’s a quick point-by-point guide to help you weigh the options.

Upfront costs

Buying a car: Most people finance their car purchases with an auto loan. Even so, upfront costs may include your down payment, taxes, registration and other dealer fees.

Leasing a car: Upfront leasing costs may include the first month's payment, a security deposit, an acquisition fee, title fees, registration fees and other dealer fees.

Payment term lengths

Buying a car: Payment terms are typically stretched out for 60 to 72 months.

Leasing a car: A normal lease runs 24, 36 or 48 months. Be careful of leases longer than 36 months. The factory warranty may run out and leave you with the costs of repairs.

Monthly payments

Buying a car: Because you're paying off the full purchase price of the vehicle plus interest and other finance charges, loan payments are sometimes higher than lease payments.

Leasing a car: You're only paying for the amount you're using the vehicle. Mileage, your down payment and residual value are all calculated into your payment.

Vehicle value

Buying a car: The future value of your vehicle is based on its wear and tear, mileage, depreciation, market demand and age. This value can vary on a monthly basis.

Leasing a car: At the start of the lease, the vehicle's market value is based on a residual value. This will predetermine the value at the end of the term and cannot be negotiated.

Mileage

Buying a car: There are no limits to mileage.

Leasing a car: Leasing a vehicle comes with mileage restrictions. If you regularly drive under 10,000 or over 15,000 miles every year, leasing is not the best choice. Overages can get expensive, and costs will vary based on your vehicle.

Wear and tear

Buying a car: You are responsible for the repairs and maintenance that are not covered outside of warranties.

Leasing a car: You are responsible for returning the vehicle with any repairs and maintenance performed per the owner's manual.

If you have decided that an auto loan is the way to go, we’re here to help! Call us today at 888-873-2640 to get started with your application.

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