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We know there are a lot of decisions that you have to make when getting a vehicle. One of them is, should you buy or lease the vehicle you want? Here at Jim Hudson Hyundai, we think you should know the pros and cons of both purchasing methods.
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Here then are the pros and cons of buying:
Pros:
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You will actually own the vehicle one day
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You will not have to deal with economic penalties or restrictions on mileage
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You don't have to worry about dents, dings, scratches, or other exterior/interior damage
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You can customize your vehicle however you want it
Cons:
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The monthly payment on a purchased car is typically higher
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The initial out-of-pocket cost is higher due to having to pay a down payment
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Equity can be lost due to the monthly payments going primarily towards interest instead of the principle
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You can get stuck in an "upside-down situation," where you owe more than what the vehicle is worth
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Here are the pros and cons of leasing:
Pros:
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You have lower out-of-pocket expenses
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You have to pay little or no down payment
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Your monthly payments are usually lower
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You can own a new car every few years when you lease ? no long-term commitment
Cons:
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You never really own the vehicle you are leasing
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You are subject to mileage restrictions and have to pay extra for every mile over you drive
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Insurers typically charge higher coverage costs
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Other dealers may try to transfer more depreciation cost onto you by giving the vehicle an unfairly low residual value
As you can see, there are many advantages and disadvantages should you buy or lease a vehicle. Regardless of which method you choose, be sure to review your budget, learn more about your credit rating and current interest rates, and think hard about which option is best for you and your lifestyle. From all of us at Jim Hudson Hyundai, happy hunting! |
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