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Leasing vs Buying a New Car

Leasing vs Buying a New Car

Why Should You Lease a New Car?

If you prefer to drive newer, safer, more reliable cars or trucks, but not pay a big down payment every few years, and also do not travel an enormous amount yearly, then a new car lease might be the right choice for you. Leasing is intended for those who would prefer to bypass the hassle of buying and selling every time they want to upgrade to a new car or truck.

Why Should You Buy a New Car?

Conversely, if you want long term automotive relationships with a greater sense of ownership and commitment, then buying should be what’s ideal for you. Car-buying is typically best for people who will not mind driving the same car or truck for more than five years or even until it is no longer fit for the street.

Lease vs Buy: Which Is Right for You?

Being aware of the pros, cons, and overall benefits of buying vs leasing a vehicle is imperative. Be sure to examine factors like repair costs, vehicle ownership, monthly payments, and potential savings when weighing the pros and cons of the best new vehicle financing type for you.

Buying: Ownership vs Leasing

When considering vehicle financing, new car or truck ownership surely comes along with many well-known advantages, most associated with complete ownership of the car, truck or SUV. You may not realize, however, there are also some great advantages to leasing, as well. It’s essential to consider all financial aspects including interest rate, down payment, monthly payments, term length, buyout payments, depreciation, and maintenance & repair costs, before making a decision. A thorough checkup of your current financial situation, future needs, and your preference for commitment, will likely ensure that you make the perfect choice between leasing and buying a new car.

leasing vs financing a new car benefits

Monthly Payments

Car or truck lease payments are often less expensive compared to car financing and loan payments as the standard lease structure is basically renting with the option to buy out at the final payment of your lease term. Just consider when leasing that you will need a decent credit score, and will be required to carry collision and comprehensive insurance, although the same can be said for the lower rate auto loans. Though it could add to your monthly payments, it is also best to get a model with the features you want or need, as personal satisfaction is often priceless.

more expensive to buy or lease a new car

Maintenance & Repair

Auto leasing often includes regular vehicle maintenance & repair. It is important to keep this in mind when calculating monthly costs of leasing vs ownership. Regardless of what make and model you buy, mechanic bills are an uncertain cost that can quickly add up. And for those of us who are not certified auto mechanics with a hydraulic jack and full toolset in the garage, leasing can be the best option for peace of mind.

lease vs buy car analysis

Investment vs Savings

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 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 the best investment on a purchased/financed vehicle, you can pay it off quickly and also avoid excessive wear and mileage.

Lease Buy
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
APR % Credit-Based Credit-Based
New Vehicles Available Available
Pre-Owned Vehicles Not Available Available
Vehicle Customization Not Available Available
Poor Credit Financing Not Available Available

Hyundai Lease and Finance Offers In Oklahoma City OK

Bob Howard 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 in Oklahoma City, OK. We look forward to serving you.

Bob Howard Hyundai 35.392165, -97.524597.