If it’s about time to consider a new car, you have a lot to think about. Not only do you need to consider what makes and models interest you, but you also have to decide if you would like to lease or finance your new car, truck, or SUV. Both of these options provide some benefits, so let’s take a closer look at each in great detail.
How Does Leasing Work?
Leasing is an excellent option for those who are looking for a great deal on a newer vehicle. Leasing is much like renting a vehicle — usually for a period of three years — and then deciding if you would like to buy it or not. Should you choose not to purchase the vehicle, you’ll then lease or look to finance another.
Leasing is a smart choice if you don’t have a large amount of money for a down payment and are looking to see smaller monthly payments. With a lease, you are essentially paying for the first few years of the vehicle. That means your payments likely won’t be as high. Considering you’ll be saving money, leasing generally allows you to take a look at makes and models you may not be able to afford to finance.
Another important benefit of a lease is that the vehicles are new or almost new. This means that it’s unlikely you’ll be opening up your wallet to pay for costly repairs. Some parts may even still be under warranty, helping you save on service.
So Why Finance?
While leasing certainly has its benefits, financing may still be the right choice for you. The biggest positive of financing is that eventually, you’ll own the vehicle. This means you can sell or trade it down the road and actually get something in return. More importantly, this means that once your loan is paid off, you’ll have no more monthly payments, which may end up saving you money in the long run.
Leasing also comes with some stipulations, which financing does not. With a lease, you’ll need to make sure not to go over your mileage limit, and you’ll need to keep the vehicle in relatively good shape, or else you’ll likely be facing financial penalties when you turn it in. With financing, after you get the keys, you can do with it as you please.
Let Parkway Hyundai Help You Decide
Come down to our Hyundai Finance Center in Wilmington, North Carolina, and let our team help you choose between leasing and financing your next vehicle. We offer personalized financing plans and even have Hyundai lease deals and specials.