Choosing whether to lease or finance a car is solely up to the preferences and budget of the driver. Both options offer many benefits, but they can vary vastly. Leasing cars involves lower risk contractual agreements that have short-term monetary benefits. On the other hand, financing your vehicle presents long-term monetary benefits but less flexibility.
What exactly is car leasing? Leasing a car is a short-term car “purchase” or long-term “rental”, which typically lasts between 24 to 36 months. There are many reasons why someone may choose to lease a car instead of financing. Car leasing makes more sense when you are visiting or living somewhere for a short period of time, or when you simply desire a new, temporary vehicle.
Car leasing is most attractive to drivers who regularly like to drive new vehicles. Some drivers also prefer to lease solely to have the ability to test out a car before entering a long-term financing agreement. There are many pros that come along with leasing cars. One major benefit is that you only pay for a portion of the car’s value instead of paying the full price over time, as you would do with financing. Monthly payments also traditionally tend to be lower for leasing a car than they are for financing. Overall, you do end up paying less in taxes, monthly payments and total cost when leasing a vehicle. However, if you intend to purchase the vehicle and keep it for many years, financing may be your better option.
There are many leasing options you can enter here, with our Hyundai leasing experts. With the ability to switch out your vehicle every 2 to 3 years, many drivers opt to enter a car lease for new vehicles rather than for used cars. However, leasing a used car is still a smart option. Another benefit of leasing versus financing your vehicle is the flexibility that comes at the end of your lease.
Here are your options to consider towards the end of your car lease:
- Return your vehicle to the dealership.
- Extend your lease term.
- Return your vehicle and switch it out with another vehicle.
- Enter a lease transfer.
- Buy your vehicle at the end of your lease.
FINANCE OR LEASE A HYUNDAI
Whether you decide financing or leasing a vehicle is best for you, our staff here at Abbotsford Hyundai is available to help you find the best option for your preferences and budget. Come in today to talk to one of our Financial Services experts!
Contact us for more detailed information on leasing versus financing your vehicle.