When looking for a new ride, it�s a good idea to think about all of the options for getting into that new car. There are benefits to both leasing and buying a car (whether through financing or paying outright with cash). Here is a rundown of the difference between the two options and the advantages of each � perfect for a buyer to refer to when they are making purchasing decisions at a Hyundai dealership in Brampton.
click here Ownership
Buying/financing a vehicle means that the purchaser owns it outright. They can keep it as long as they want, and can resell it, too. With leasing, on the other hand, there is no ownership of the vehicle. The car owner must return it at the end of the lease (unless they decide to buy it).
Immediate Costs
Up-front costs for buying a car include the cash price or the first down payment, as well as taxes and fees. Immediate costs associated with leasing usually include the first month�s payment, an additional down payment, a refundable security deposit, and taxes/other fees.
Monthly Payments
Paying off a car loan after purchasing the vehicle is often more expensive month-to-month than making lease payments. When the car is owned, the owner is paying off the entire purchase price. When the car is leased, the lessee only pays for the depreciation of the vehicle during the lease�s term (as well as rent charges, taxes and fees).
Returning the Vehicle
Car buyers have to either sell or trade their car in when they no longer want it. Car leasers can simply return the vehicle when the lease ends.
Early Termination
Buyers can sell or trade in their car whenever they want. Leasers must pay early termination fees if they wish to end their lease early.
Mileage
Buyers can put as many miles on their car as necessary. Leasers are usually restricted in regard to the number of miles they can drive per year.
Wear and Tear
Leases will mostly hold the lessee responsible for excessive wear and tear on the vehicle while it is in their possession, and will charge a fee. Car buyers can put as much wear and tear on their vehicle as they want, but they must be conscious of the fact that this will decrease its resale value.
Conclusion
To put it simply, those who choose to lease a car do not own that car. They are subject to the lease�s terms and must abide by them or risk facing extra fees and charges. This is very similar to renting an apartment versus buying a home. Renting/leasing is more restrictive, but some people cannot afford to buy cars because the loan payments are higher than lease payments.
Another scenario where it makes sense to lease a car from a Hyundai car dealership in Brampton is if prospective owners/lessees do not plan on keeping the car long, or prefer to drive the newest models available on the road. Whatever the purchasing decision, whether buying or leasing from a car dealership in Brampton, buyers should be aware of the differences and make smart, informed choices.