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.
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.
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.
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.
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.
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.
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 |
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.
