If you want to drive newer, safer, more reliable vehicles, prefer not to make a considerable down payment every few years, and also don’t drive an exorbitant amount of miles every year, then a new car lease might be best for you. Leasing is designed for those who would prefer to bypass the annoyance of buying and selling each time they want to drive a new car.
On the other hand, if you want long term automotive relationships with a greater sense of commitment and ownership, then buying should be what’s right for you. Car-buying is typically best for drivers who will not mind driving the same car or truck for more than five years or even until it is no longer suited for the highway.
Being aware of the pros, cons, and overall benefits of buying vs leasing a car or truck is critical. Be sure to contemplate repair costs, vehicle ownership, monthly payments, and potential savings when considering the best new car, truck or SUV financing type for you.
When it comes to vehicle financing, new car, truck, or SUV ownership certainly comes with many well-known advantages, most associated with absolute ownership of the car or truck. You may not realize, but, there are also a few nice upsides of leasing, as well. It’s imperative to consider all financial aspects including buyout payments, down payment, monthly payments, term length, interest rate, depreciation, and maintenance & repair costs, before making a decision. A thorough inspection of your current financial situation, future needs, and your preference for commitment, will likely ensure that you make the best choice between leasing and buying a new car, truck, or SUV.
Car or truck lease payments are oftentimes less expensive when compared to car financing and loan payments as the typical lease structure is basically renting with the option to purchase near the final payment of your lease term. Just consider when leasing that you will need a healthy credit score, and will be asked to carry collision and comprehensive insurance, although the same can be said for the lower rate auto loans. Though it could likely increase your monthly payments, it’s also better to choose a model with the features you want or need, as personal satisfaction is often priceless.
Auto leasing often includes regular vehicle maintenance & repair. It is important to keep this in mind when calculating monthly costs of ownership vs leasing. Regardless of what make and model you select, mechanic bills are an unknown cost that can rapidly add up. And for those who aren’t certified mechanics with a hydraulic jack and full toolset in the garage, leasing may be the best option for peace of mind.
In general, a new car or truck 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, truck, or SUV at the time it is traded, sold, or paid-off. For best value on a lease, avoid lease return fees for going over mileage, terminating the vehicle lease early, or putting on excessive wear and tear. For maximizing investment on a financed/purchased 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|
Gene Messer 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 Lubbock, TX. We look forward to serving you.