If you like to drive newer, safer, more reliable cars, trucks, or SUVs, not pay a considerable down payment every 3-4 years, and also don’t drive an excessive amount annually, then a new car lease may be best for you. Leasing is ideal for those who prefer to avoid the annoyance of buying and selling each time they want to get into a new car or truck.
Contrarily, if you want long term relationships with a greater sense of commitment and ownership, then buying may be what’s right for you. Car-buying is typically best for drivers who will not mind driving the same car, truck, or SUV for more than five years or even until the vehicle is no longer suitable for the road.
Being aware of the pros, cons, and overall benefits of buying vs leasing a vehicle is critical. Be sure to examine factors like vehicle ownership, monthly payments, repair costs, and potential savings when weighing the pros and cons of the best new vehicle financing type for you.
When considering vehicle financing, new car, truck, or SUV ownership surely comes along with many advantages, most associated with outright ownership of the car. You may not be aware, but, there are also some nice benefits of leasing, as well. It’s important to consider all financial aspects including term length, down payment, monthly payments, buyout payments, interest rate, depreciation, and maintenance & repair costs, before making a decision. A thorough examination of your current financial situation, future needs, and your preference for commitment, will likely ensure that you make the ideal choice between leasing and buying a new car, truck, or SUV.
Car lease payments are often less expensive in comparison to auto loan and car financing payments as the normal lease structure is pretty much renting with the option to purchase at the final payment of your lease term. Remember when leasing that you will need a higher credit score, and will be asked to carry comprehensive and collision insurance, although the same can be said for the best rate auto loans. Though it may add to monthly payments, it is also better to choose a model with the features you need or want, as personal satisfaction is often priceless.
Auto leases often include regular vehicle maintenance & repair. It is important to remember this when calculating monthly costs of ownership vs leasing. Regardless of what make and model you choose, mechanic bills are an unknown cost that can quickly add up. And for those of us who are not certified mechanics with a full toolset and hydraulic jack in the garage, leasing can be the best option for peace of mind.
In general, a new car lease saves money in the short term with lower monthly payments, while buying earns you a long term investment, meaning full ownership of the value of the car or truck at the time it is traded, sold, or paid-off. For best savings on a lease, avoid lease return fees for terminating the vehicle lease early, going over mileage, or putting on excessive wear and tear. For maximum investment on a purchased/financed vehicle, you can pay it off quickly and also avoid excessive wear and mileage.
|Ownership||No Ownership||Pride of Ownership|
|Down Payment||Smaller Down Payment||Larger Down Payment|
|Monthly Payment||Smaller Monthly Payments||Larger Monthly Payments|
|Maintenance & Repair Costs||Typically Included||Not Included|
|Savings/Investment||Short Term Savings||Long Term Investment|
|Finance Term||Approx. 2-4 Years||Approx. 3-6 Years|
|Pre-Owned Vehicles||Not Available||Available|
|Vehicle Customization||Not Available||Available|
|Poor Credit Financing||Not Available||Available|
Sterling McCall Hyundai knows that choosing the right Hyundai car and financing option is never easy. Our team of experienced Hyundai lease and finance specialists are on hand to help you make the right choice. Visit us online, by phone, or in-person at our dealership location in Houston, TX. We look forward to serving you.