One of the most important decisions you need to make when shopping for a new car is whether you want to buy or lease it. However, choosing the right option isn't as easy as you think. There are many aspects of buying and leasing that you must consider for you to make the best decision for your lifestyle.
Fortunately, Winner Hyundai can help you and drivers in Dover, Wyoming, and Rodney Village choose the best option for your particular wants and needs. All you have to do is read the guide below to find out everything there is to know about buying vs leasing a new car.
Pros and Cons of Buying a New Car
There are two ways to buy a new car. You can pay for the entire cost of the vehicle upfront, but most people usually apply for a finance program and pay it off with monthly payments. One of the biggest benefits of both options is that once the vehicle is paid for, it's completely yours. This means the title is in your name, and you don't need to make any more monthly payments.
You're also free to customize the car however you like if you buy it. Want to upgrade the stereo system, paint the exterior a different color, or convert the suspension system? Go ahead! You won't be penalized for any of that because the car is completely yours.
Most importantly, you have the freedom to drive wherever you want no matter how far because buying a car doesn't restrict the number of miles you can drive per year. So, if you commute long distances regularly or are a lover of spontaneous road trips, buying is most likely the best option.
Unfortunately, there are a few drawbacks to buying you need to consider. For instance, buying a new car is usually more expensive than leasing even if you have a hefty down payment. In addition to that, financing plans are longer than lease programs. This means you make costly monthly payments longer.
Pros and Cons of Leasing a New Car
Like financing, leasing a new car will require you to make monthly payments for a period of time. However, lease payments are generally less expensive. This is because you're only paying off the difference between the price of the car and its residual value, or how much the vehicle is worth when the lease period ends. Lease plans are shorter as well. The standard lease plan is usually for three years. Plus, little to no down payments are required to get low monthly payments.
Another big perk about leasing is that you can get a new car every three years, or however long your contract is. Once your contract is up, you just return the car to the dealer, pay the end-of-lease costs, and pick out a new car to lease.
However, like buying, leasing does have its disadvantages. The most prominent drawback is that you're only allowed to drive a certain number of miles per year. Exceeding that number will result in costly fees.
Leasing also forbids you from customizing the car, and it will penalize you for excessive wear and tear when the vehicle is returned to the dealership.
Leasing vs Buying: Which is Best for You?
Buying and leasing a new car offers its own set of benefits and drawbacks. If you need a plan that won't restrict your miles, then consider buying your next new car. If you require an option that's more cost-effective, leasing is the way to go.
If you still need help making your decision, contact Winner Hyundai. We'll give you all the information you need to make the best choice for your lifestyle.