Lease or Buy, Calgary Hyundai Has Your Leasing Options
There are pros and cons to each option, and the choice depends on a number of factors:
What you want your monthly payments to be, how many kilometres you drive each year, and how attached you get to your cars. And, from a purely financial perspective, it’s important to consider the cost of each option over the entire lifetime of the vehicle.
Buying a vehicle is the more straightforward transaction. Simply put, you’re paying for all of its costs and sales tax upfront with cash or credit card. If financing through loans, monthly payments will be determined by how much was spent on price + interest rate x length (in months) until payoff at last payment date. There can also potentially arise various finance charges or fees and these based on lender-approved plans. When you make the last payment on the loan, you’ll own your car and can choose to sell it or continue driving it.
Leasing a car means you only pay for the portion of the vehicle you use over the course of the lease, which is usually three to five years. This can save your wallet since monthly lease payments will be lower than what someone would spend on ownership of an identical vehicle with financing included in its price tag – all other things being equal (i.e., assuming no factory rebates). There are very specific rules about how many kilometres one should drive before returning their leased vehicle; if these guidelines aren’t followed then there could potentially be penalties involved like losses due termination fee etc.. So make sure read through every detail carefully! As with purchasing a vehicle, there may be various finance changes and fees.
When you do the calculations, you’ll find that you can make some fairly broad generalizations about the cost of leasing versus buying:
- In the short term, the monthly costs of leasing are lower than the monthly costs of buying.
- In the long term, the cost of buying is less than leasing, because the buyer can continue to drive the car after all the payments have been made.
To help you get started in making the decision that’s right for your needs, we’ve put together a brief list of some things to consider.
Advantages of buying:
- Full ownership at the end of the loan
- No limit on kilometres
- Less worry about dents and dings/condition
- Flexibility to customize your vehicle
Advantages of leasing:
- Smaller (or no) down payment
- A new car every few years
- You can drive a better car for less money
- No long-term commitment
Now that you know some of the basics, we recommend that you look at your budget, learn more about the specifics of your credit rating and contact a Calgary Hyundai Product Specialist to find the vehicle and finance options that will meet your needs.