A new Hyundai can be expensive. That is why many people may have a hard time deciding whether they should lease or finance one. There are several things that you will need to know before you decide which option is best.

What Is Leasing?

Leasing is like renting a car. You will not have to pay the full price upfront. However, you will have to pay for the expected depreciation. You will also have to pay fees and interest. Additionally, you will likely have to make a down payment.

You will make monthly payments. Lease terms typically last two to three years, but they can vary.

What Is Financing?

Financing is the traditional way to get a new car. Most people finance a car through a credit union or bank. The lender will send the money to the company to pay the vehicle. You will make monthly payments until you pay the loan off. The lender will own the title until you pay off the loan.

Pros And Cons of Leasing

Before you decide whether you should lease or buy, you need to weigh the pros and cons. If you lease a car, then you will have a lower monthly payment. You will also be able to return the car at the end of the lease if you do not want it anymore.

However, there are mileage restrictions that apply. The car also has no equity, which means that you cannot trade it in.

Pros And Cons of Financing

You won't have mileage limits if you finance a car. You will also have an asset once you pay for your car. However, if you finance, then your monthly payments will be higher. You will also be responsible for paying for the car repairs if the warranty period has already expired.

Categories: Finance