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

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

The decision to buy or lease a car can be a little confusing at first, but the circumstances in which one makes more sense than the other are actually pretty clear. Let’s go over the biggest reasons to either lease or finance a new Hyundai (or any other make and model, for that matter).

When To Buy a Car

You Drive a Lot

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.)

You Customize Your Rides

Are you planning on customizing or modifying the car? If so, you definitely want to buy. When you lease a vehicle, you’ll have to remove all those customizations before returning the car to the dealership.

You Can Afford It

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!)

When To Lease a Car

You Like to Upgrade

If you’d like to upgrade your vehicle to a new model every few years and don’t want to deal with selling or trading in your car each time, leasing is a convenient way to go. You’ll always have the latest and greatest automotive features and safety systems.

You Want to Limit Monthly Costs

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.

You Use the Car for Business

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.

You Want Something Reliable

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.

Still Wondering Whether to Finance or Lease? Call Us!

Any other questions about which lease vs. finance options are perfect for you? Interested in checking out a new Hyundai in Birmingham? Swipe open your phone and call Jim Burke Hyundai at 205-324-3371. Or feel free to drop by our Birmingham car dealership at 1424 5th Ave N! We offer a wide range of Hyundai financing, leasing, and purchasing opportunities for all car shoppers.