Advantages of Buying a Hyundai

What is the monthly payment you want to pay? How many miles/kilometers do you travel each year? From a purely financial point of view, it is important for a person to calculate the actual cost of each option for the total time one has a great model car.

Purchasing is the simplest solution when acquiring a vehicle. In simple terms, folks pay the total cost of the vehicle (including sales taxes). If they finance the purchase with a loan, their monthly payment will depend on the cost of the vehicle, the loan interest rate, and its duration. There could also be various other fees and taxes. When (and if) a person makes the last payment on their loan, he/she becomes the owner of said vehicle, which means you can do what you want with it. To get an idea of the monthly payment associated with financing the purchase, it is best to use an online monthly calculator.

When individuals lease a vehicle, they pay only for the time they have the vehicle, which is usually a leasing period of 1 to 5 years. Since you do not pay for the total cost of the vehicle, your monthly payment is less. However, with leasing, there are conditions to be met with respect to the number of miles/km allocated and the condition of the vehicle on return, for example. In addition, there is a penalty fee if the driver of the vehicle decides to return it before the end of his/her contract. It is, therefore, very important to carefully read the contract (including the fine print). As with the purchase of a vehicle, there could also be various financing charges and fees associated with a lease.

When all calculations are made, there are some conclusions that can be drawn from comparing the two options:

  • In the short term, a monthly lease is lower than that of a purchase.
  • In the long term, the cost of a purchase is less than the cost of the lease since the buyer remains the owner of the vehicle and can continue to drive after all the monthly payments have been paid.

To help you make the decision that best suits your situation, it is crucial to know the benefits associated with each option. Lastly, never make an impulse buy as this could devastate you financially.