Have Questions Regarding Lease vs Finance?
Pathway Hyundai is Here to Help!
How can we help you with financing your next car? We know it can be confusing, especially if this is your first time going through the process, but doesn't have to be! Your auto finance choices are broader than ever, with various terms, great rates and leasing options available to you. Our expert Finance Team here at Pathway Hyundai is here to help you make sure you can make an informed decision that will work best with your needs, budget and lifestyle concerns. If you are just looking to get started right away, Click Here to Get Pre-Approved Today
When you choose to buy your car you pay for the entire cost of a vehicle, regardless of how many miles you drive it or how long you keep it. Monthly payments for financing are higher than for leasing. You typically make a down payment, pay sales taxes in cash or roll them into your loan, and pay an interest rate determined by your loan company based on your credit score. You make your first payment a month after you sign your contract. Later, you may decide to sell or trade the vehicle for its depreciated resale or trade value.
When you choose to lease your vehicle you pay only a portion of the total cost / value of the car, crossover or SUV you choose, which is the part that you "use up" during the time you're driving it. Leasing is a form of financing and is not the same as renting. You have the option of not making a down payment, you pay sales tax only on your monthly payments (in most states), and you pay a financial rate, called money factor, that is similar to the interest on a loan. You may also be required to pay fees and possibly a security deposit that you don't pay when you buy. You make your first payment at the time you sign your contract for the month ahead. At lease-end, you may either return the vehicle or purchase it for its depreciated resale value. You may be charged a lease-end disposition fee.
Lease vs Finance Example
As an example, if you LEASE a $20,000 car that will have, say, an estimated resale value of $13,000 after 24 months, you only pay for the $7000 difference (this is called depreciation), plus finance charges, plus possible fees. You return the car at lease-end, or buy it to own it.
When you BUY, you pay the entire $20,000, plus finance charges, plus possible fees. You own the car at the end of your loan, although its value is less than the $20,000 you initially paid.
Get Approved Today
Getting pre-approved for your finance or lease application to get into a new or used Hyundai has never been easier. Fill out our basic application form here online to save yourself some time before coming into our dealership and we can get you driving off the lot in your new vehicle as soon as possible.