Leasing vs Buying a New Car

Why Should You Lease a New Car?

If you want to drive newer, safer, more reliable cars or trucks, prefer not to commit to a sizable down payment every 3-4 years, and also do not travel an excessive amount of miles annually, then a new car lease might be the right choice for you. Leasing is better for those who would prefer to avert the hassle of selling and buying each time they want to upgrade to a new car.

Why Should You Buy a New Car?

On the other hand, if you prefer long term automotive relationships with a larger sense of ownership and commitment, then buying may be what's best 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 it's no longer fit for the highway.

Lease vs Buy: Which Is Right for You?

Being aware of the pros, cons, and overall benefits of buying vs leasing a car, truck, or SUV is important. Be sure to contemplate repair costs, vehicle ownership, monthly payments, and potential savings when calculating the best new car or truck financing type for you.

Buying: Ownership vs Leasing

When weighing the value of vehicle financing, new car, truck, or SUV ownership certainly comes with many advantages, most associated with complete ownership of the car. You may not realize, however, there are also some nice upsides of leasing, as well. It's important to consider all financial aspects including down payment, monthly payments, term length, buyout payments, interest rate, depreciation, and maintenance & repair costs, before making a decision. A precise examination of your current financial situation, future needs, and your preference for commitment, will likely ensure that you make the optimal choice between leasing and buying a new car.

leasing vs financing a new car pros and cons

Monthly Payments

Vehicle lease payments are oftentimes less expensive compared to car financing and loan payments as the typical lease layout is pretty much renting with the option to buy out near the final payment of your lease term. Consider when leasing that you will need a decent credit score, and will be required to carry collision and comprehensive insurance, though the same can be said for the better rate auto loans. Though it could likely add to your monthly payments, it's also best to choose a model with the features you want or need, as personal satisfaction is often priceless.

why leasing a car is smart

Maintenance & Repair

Auto leases often include regular vehicle maintenance & repair. It is important to remember this when calculating monthly costs of ownership vs leasing. No matter what make and model you select, mechanic bills are an unpredictable cost that can quickly add up. And for those 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.

analysis of lease vs buy a car

Savings vs Investment

In general, a new car, truck, or SUV lease saves money in the short term with more affordable 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 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 in a shorter term and also avoid excessive wear and mileage.

LeaseBuy
New VehiclesAvailableAvailable
Pre-Owned VehiclesNot AvailableAvailable
Vehicle CustomizationNot AvailableAvailable
Poor Credit FinancingNot AvailableAvailable
APR %Credit-BasedCredit-Based
OwnershipNo OwnershipPride of Ownership
Down PaymentSmaller Down PaymentLarger Down Payment
Monthly PaymentSmaller Monthly PaymentsLarger Monthly Payments
Savings/InvestmentShort Term SavingsLong Term Investment
Finance TermApprox. 2-4 YearsApprox. 3-6 Years
Maintenance & Repair CostsTypically IncludedNot Included

Hyundai Lease and Finance Offers Near Houston TX

Ron Carter Hyundai knows that choosing the right Hyundai car and financing option is never easy. Our team of experienced Hyundai lease and finance specialist are on hand to help you make the right choice. Visit us online, by phone, or in-person at our dealership location near Houston, TX. We look forward to serving you.