Buying vs. Leasing a Car: Which is Right for You?

Since the whole premise of a car lease is that you're paying an amount equivalent to the vehicle's depreciation value, it makes more sense to buy if you know you're going to put some significant miles and wear* on the car.

For example, buying is likely your best option if you have a long commute or a job that has you travelling most of the year. Likewise, if you want to go off-roading on the weekends-try it with a Hyundai Palisade -leasing usually isn't the right choice, either. Leases restrict you to a set mileage (10,000 or 12,000 miles per year) and will charge you fees for excessive wear and tear.

(*Keep in mind that wear extends to the interior of the vehicle, not just the exterior and the moving parts. So, if you have kids or pets that are going to be travelling with you regularly, buying a car is probably the financially advantageous option in the long run.) 

Typically, buying or financing a new car requires a significant down payment - about 20% of the vehicle's sale price - and hefty monthly payments. However, once you've paid off your new car loan in full, the vehicle is yours outright.

Also, you'll be on the hook for all repairs and maintenance over the course of your ownership, especially once your warranty ends. Buying a new Hyundai helps to defer some of these extra expenses thanks to their amazing 10-year/100,000-mile powertrain warranty. (There's a reason Hyundai has America's Best Warranty!)

Leasing a vehicle is better than buying if you want to keep your monthly expenses lower, too. In fact, leasing is usually cheaper in the short term, as your down payments are minimal (or nonexistent) and monthly payments only cover the vehicle's depreciation cost, not the sale price.

Use our payment calculator tool to see how much it would cost to finance vs. lease a vehicle.

Vehicle leases make particular sense if you need a car for business purposes yet aren't going to be driving vast distances with it.

For example, let's say you have a job in Birmingham that you know will only be for a handful of years; at the end of that period, you'll be moving somewhere else and won't necessarily want to take your vehicle with you. A lease allows you to get a newer model with a more affordable down payment, and if it's used for business purposes you can also take advantage of tax deductions. 

Many people simply don't like taking care of their vehicles; they drive them and that's it. Having something dependable is crucial, and a leased vehicle is the answer. Because they're always new and under warranty, leased cars typically only require regular routine maintenance (oil changes, tires rotations, and the like) and rarely "break down." Leasing a car is just the easiest, most reliable option.