Leasing vs. Financing
Leasing vs. Financing a New Vehicle at Premier Hyundai of Seaside
Leasing and financing are two options to drive a brand-new vehicle. Both offer advantages for different kinds of buyers. They also come with some downsides that you should consider before you commit. Whichever method you choose to get a new vehicle in Seaside, Salinas, or Monterey, you can find your next model at Premier Hyundai of Seaside.
How Leasing Works
You are probably pretty familiar with the process of buying a vehicle and getting approved for a car loan. Leasing is more like renting a vehicle because you make monthly payments for the term of your lease, which is usually two or three years. At the end of the term, you must decide if you want to buy the vehicle, return it and start a different lease with a new vehicle, or just return it without getting a new lease.
If you are considering leasing, you will find several advantages. For one thing, leasing payments are often lower than loan payments because you are only paying on the value of the vehicle while you drive it. With a loan, your payments are based on the entire value or sticker price of the vehicle.
Since your payments may be lower, you might consider a more expensive model than what you could afford to buy with a loan. You may choose a higher trim or one that comes fully loaded.
People who like to drive the latest model may find leasing a better option. They can upgrade to a newer vehicle every couple of years to enjoy current technology. Another benefit is that they won’t need to worry about selling the vehicle or finding a buyer when it’s time to move into another model.
The Disadvantages of Leasing
Before you decide to lease, you should also consider the disadvantages. One of the main issues is mileage restrictions. Most leases give you a certain number of allotted miles. If you go over that number during your lease, you will pay extra. This can add up to several hundreds of dollars or even thousands.
Another factor that may sway you from leasing is the inability to customize your vehicle. You can’t switch out the stereo system for a fancier product. You can’t replace or add other accessories to the vehicle. When you buy a vehicle, it’s yours to do with as you please. You can install accessories or even change the paint color because you own the vehicle eve with a loan.
Be aware of other fees you may encounter with leasing. You might end up paying a fee for wear and tear if the vehicle isn’t returned in excellent condition. If you decide to terminate the lease early, you could pay extra to get out of the lease.
Consider both leasing and buying when you want a new vehicle. Decide which one is right based on how you drive and what you want in a vehicle. Check out Premier Hyundai of Seaside to find the right model for you today.