Lease vs Buy a Hyundai in Lubbock TX

Should You Buy or Lease Your New Hyundai?

Buying a new car or choosing any of those awesome lease deals is a big thing to decide. We, at Gene Messer Hyundai, are here to help.

Adding a new vehicle to your life is a big step and we know the decision to buy or lease your next car can be daunting. The process of buying a new car is undoubtedly overwhelming considering the amount of time you spend selecting the make and model before signing the paperwork for your next set of wheels. While the idea of buying a vehicle sounds exciting, purchasing a new car, truck or SUV may not be a suitable choice for all.

Leasing, in contrast, is easier than you think. This option doesn't have a daunting auto loan or a hefty monthly payment involved. If you love the idea of saving on the upfront payment and want to drive a newest Hyundai model, then the Hyundai car lease option is certainly for you.

Does Hyundai lease deals sound interesting? Here is some detailed information on leasing and a brief comparison between buy vs lease.

Understanding Leasing:

In simple terms, leasing is similar to the concept of renting a car for a long-term under an agreement prepared by the car dealers for the consumer. The process may seem confusing, but it is pretty simple. You will pay the money to the car lender or the dealer to use their vehicle under a contract for a fixed length of time. During this time, you will drive the car within a predetermined mileage limit, usually between 13,000 to 15,000 miles a year. The package will cover vehicle services and most of the repair costs.

At the end of your lease term you are expected to return the car in its original shape and in pretty good condition. Sounds super simple, right?

How Much Would You Pay for Leasing?

Here is an example to help you understand how much you would pay when you choose leasing. When you choose the Hyundai model, which is priced at $25,000, you will be paying 40 percent of the price tag. The lease price is calculated based on the projected value of the vehicle at the end of a 36-month lease term and the depreciation value based on its original price, which means you will pay $10,000 for your Hyundai car lease. The price per month is then calculated based on the lease term.

Other Costs:

One of the major costs associated with leasing is GAP insurance. While the cost associated with it can be high, it is a good idea for leased vehicles in most circumstances. Apart from the insurance, your Hyundai car lease will include lease fees and taxes in the monthly costs.

Pros:

     
  • Low monthly cost
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  • No maintenance fee
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  • The possible option of driving new models every two to three years
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  • No trading or selling involved

Cons:

     
  • You are not going to own a vehicle
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  • Mileage is limited
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  • You will need a GAP insurance

Understanding Buying:

Buying a car is the first step towards your car ownership. Although, Hyundai car lease options sounds great, but it is not for everyone. You either pay cash or choose a loan to buy your new Hyundai. The upfront cost is certainly high, but that shouldn't outweigh the benefits of buying a car. The process involved in buying is straightforward: you choose the car, check the features, and sign the papers to close the car deal and own your favorite Hyundai car.

Building Equity:

Buying a car means you are owning the vehicle as long as you are not selling it. Perhaps, this is the greatest benefit of buying a car. Once you finish off your loan, you are building equity in the vehicle. Although the future value of any vehicle depreciates, it still offers you upfront cash value at any point of time when you decide to sell it.

Customizing:

When you own the vehicle, you can make any customizations whenever you want to. However, certain vehicle customizations may void the warranty.

Apart from the financial decision-making process, price haggling and loan, you may have to compare both lease vs. buy options before deciding. Here is a brief overview with pros and cons.

Pros:

     
  • You own the vehicle once you finish the loan payment
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  • You bear all expenses associated with car repair and maintenance
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  • Once you own the car (after you pay off the loan), you can sell it
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  • You don't have any mileage limits
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  • Ability to build equity in the vehicle

Cons:

     
  • Upfront down payment
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  • High monthly payment
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  • Your car depreciates dramatically

Bottom Line:

It is always a tough call while selecting a choice between buying or leasing a car. On one hand, a Hyundai car lease gives you the flexibility to save on upfront payment, whereas car buying makes you the owner of your favorite Hyundai car. Because of the changing landscape in the industry, more consumers are choosing the Hyundai car lease option over the car loan option to buy their next vehicle. And it certainly looks like the trend is not changing anytime soon.

We hope this article will help you decide which financing decision is practical for you. Visit our webpage and our lease specials page to learn more about our lease deals, truck lease deals and other Honda leasing choices. When you are ready, give us a call at 866-296-8023, and an expert from our team will be of assistance.

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