Buying vs. Leasing
Buying vs. Leasing:
Which is Better?
The Crossroads of Buying and Leasing
Every potential buyer faces the crossroads of buying or leasing their next vehicle. For some drivers, this is an easy decision because they like the benefits of leasing, or they prefer the longevity of a purchase, but for others, the decision isn’t so easy. Dive in with us as we explore the subject of buying vs. leasing, and help you decide which method of ownership is right for you. Once you’ve made your decision, make your way down to Cleveland Hyundai and take home your new Hyundai today.
The Basics of Buying
When you buy a car; you’re purchasing the vehicle for the agreed purchase price. You can either pay cash for the vehicle or apply for an auto loan and make monthly payments until the entirety of the loan is paid off. Drivers enjoy certain freedom with buying a car because the car is yours to keep when you’ve paid it off. This means that you can customize your vehicle, keep it in any condition, and drive any number of miles that you wish. Though purchasing a vehicle does have its freedoms, there are downsides. A new vehicle depreciates the most within its first three years; this can be detrimental, especially if you have a car loan and you want to trade in your vehicle shortly after buying it. You may find that you have negative equity because your vehicle deprecated more than the payments covered.
The Basics of Leasing
Leasing a vehicle has been favored by many drivers because of the freedom that it offers. When you lease a vehicle, you’re essentially renting the vehicle for two or three years. Leasing involves you picking out your favorite model, and making lease payments until it’s time to return the vehicle. Leasing is often cheaper because you only make payments on the depreciation of the vehicle plus nominal finance fees. Once your lease is up, you typically have the option to purchase the vehicle, or return the vehicle and start the leasing process with a brand new car of your choosing. Leasing is great for individuals who love to drive a new vehicle every few years, but it does have its drawbacks.
When you lease a car, you must keep your car in good condition, keeping up with all of its maintenance and any potential repairs. In addition, because you’re paying a predetermined amount of depreciation on the vehicle, you must abide by the agreed mileage limit to avoid any excess wear and tear. When you lease, you never truly own the vehicle, so you’ll always have a monthly lease payment, which may not be ideal for drivers looking to eventually not have a car note one day.
Which is Better?
This is a question that only you can answer, as both options have their pros and cons. Many buyers enjoy the benefits of leasing because of the freedom that it gives them to jump from vehicle to vehicle every few years. Leasing also offers the benefits of low payments, but the mileage restrictions and the fact that you have no equity when you return the car is a turn-off for some lessees.
While buying a vehicle is more expensive upfront because you’ll be paying for the entire purchase price, plus tax, you’ll eventually pay off the loan and no longer have a car payment. Additionally, buyers enjoy the benefit of having equity in their vehicle even after paying it off.
While some drivers struggle to decide between leasing and buying, other drivers do both. Some drivers enjoy their cars so much that they decide to buy the vehicle after the lease, financing, or paying for the remaining balance.
Make Your Way to Our Dealership Today
At Spitzer Hyundai Cleveland we support our customers regardless of whether they choose to lease or purchase their next vehicle. Featuring regular purchase specials that offer low-interest rates and attractive loan terms, along with lease specials that feature low monthly costs, there’s no better place to come for incredible savings. Paired with a team of friendly professionals, Spitzer Cleveland Hyundai welcomes you to come in and test drive your favorite model. Thanks to tempting specials and a broad inventory, you too can drive the car of your dreams at an affordable price.