Finance vs. Lease: Which Should You Choose?

Getting a new car is a big decision -- one that often requires research and diligence on the part of the shopper. But there's much more that goes into it than just looking for the right vehicle. You'll need to decide ahead of time what kind of financing solution you prefer.

Shoppers who work with Withnell Hyundai typically pick between two payment plan options: a Hyundai lease or auto loan. Both paths allow drivers to split up the cost of a vehicle with monthly payments, but there are important differences between the two.

Leasing may be the right move if you're looking for lower monthly payments and like to get a new car every couple of years. With a lease, you'll only borrow the car from the dealership instead of buying it outright. The benefit is you'll only pay for the cost of the vehicle's depreciation during the lease term. Thus, you'll likely have lower payments than a loan. However, lease agreements usually come with yearly mileage limits and prohibit modifications.

If you want to own your car long term, we recommend financing. With an auto loan, you can split up the total cost of the vehicle by making monthly payments over several years. This makes buying newer, nicer vehicle much easier for shoppers. However, a loan is a long-term commitment and you'll be responsible for major repair costs once your warranty expires.

If you have questions about lease and loan opportunities, call us here at Valone Ford Lincoln Inc. to speak with an auto finance expert.

Categories: Finance
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