Should You Buy or Lease Your Next Car?

It’s always the big question. When it comes to financing cars, buy vs. lease? What it all comes down to is what is right for you. At Ray Skillman Southside Hyundai, we can help you determine which one is right.

So What’s the Difference?

There’s a big difference between buying a car and leasing a car. When you buy, you own the car, even if you take out a loan to pay for it. You have control over all the aspects of the car. Once you’ve paid off the loan, you can keep it, sell it, trade it, or even just give it away if you want to.

If you lease a car, you have an agreement with the dealership to drive it for a specified amount of time. You make a monthly lease payment, but you don’t own the vehicle. There are restrictions on how many miles you can drive, and usually, there are restrictions about making any modifications to the vehicle.

The Benefits of Leasing

Leasing is a good way to save on your monthly payment, and depending on the agreement, it might even include some scheduled maintenance, such as oil changes. If you like to have the latest features in your vehicle and like to upgrade to a new car every few years, a Hyundai lease is a good option.

The Downside of Leasing

While leasing is a great option, it is not for everyone. Since lease agreements come with mileage restrictions, if you tend to drive a lot, you may end up paying an extra fee at the end of the lease for any mileage overages. If you continually lease one vehicle after another, your monthly payments will never end.

The Benefits of Buying

In a closer look at a car buy vs lease scenario, buying has some benefits. There are no mileage limits, so you can drive your car as long and as far as you want, and once you pay off the loan, you won’t have any car payments. When you buy a car, it’s yours to do what you want. Make modifications, add accessories, and even change the paint color. You can also sell your car on your own schedule; if you decide you want an upgrade, then you can trade it or sell it and get a new car with a new loan.

The Downside of Buying

One of the most significant downsides of buying a car is the immediate depreciation. You’ll lose up to 25% of the car’s value in the first five years. When you buy a car, there are often higher upfront costs compared to leasing. It’s a good idea to put down about 20% of the new cars ticket price, which can be quite a lot.

Buying vs. Leasing: Which Road is Right for You?

The bottom line is it comes down to your personal situation. You have options, and now that you have more information about cars and buy vs lease, you can begin to make an informed decision. But don’t be afraid to ask your dealership’s finance team to go over your own situation with you. A reputable dealer like Ray Skillman Southside Hyundai will give you an honest assessment of your financing options so you can decide whether car buying vs. leasing is right for you.