What is Leasing?

Hyundai Elantra in downtown Chicago

If you’re in the market for a new car, you might be considering leasing versus buying a car. This is an important decision, but once you understand what leasing is and how it works, making it becomes easier. Us here at Patrick Hyundai in Schaumburg are here to help! In this guide, we’ll go through a few key benefits and disadvantages, and guide you through the process, hopefully, making your decision easier.

The Advantages and Disadvantages of Leasing a Car

A car lease allows you to drive a new vehicle without having to pay for a car in its entirety. You only pay for a portion of the car’s cost over the life of your agreement. Because of this, the monthly payments are lower than they would be if you were purchasing the car. It’s important to know that there will be requirements in your lease agreement including the number of miles you can drive, getting regularly scheduled maintenance, and more. While there are pros and cons to leasing a new vehicle, the decision to do so is dependent on your needs, what you can afford, and what you want.

Benefits

  • Lower monthly payments
  • No need for a car loan
  • You can get in a new car with no money down
  • You can get a new model every few years
  • Don’t have to worry about costly car repairs

Disadvantages

  • Some drivers worry about possible fees during a lease. Depending on your agreement, you could face a penalty if:
    • You exceed your mileage limit
    • You fail to keep the interior and exterior in good condition
    • The vehicle shows significant wear and tear
    • You break your lease early
  • You don’t own the car (though you may be able to purchase it at the end of your agreement).

How to Lease and Get A Good Deal

Before you lease, you should familiarize yourself with residual costs and capitalized cost. Capitalized cost is the selling price of a vehicle. Residual value is the car’s estimated value at the end of the lease. The difference between these prices is sometimes called the depreciation, and this is what you pay. Knowing these values will help you calculate your ideal monthly payments.

Land the best lease deal with these tips:

  1. Choose your model. Check out our new Hyundai inventory to find the vehicle you want.
  2. Compare lease deals. Take a moment to see our current incentives and new vehicle specials for the best offers.
  3. Negotiate selling price. Once you’re ready to strike a deal, it’s time to negotiate. Luckily, here at Patrick Hyundai, we offer competitive pricing on all our vehicles.
  4. Sign the contract.

Is Leasing A Hyundai Car or SUV Right for You?

If you have more questions about leasing, feel free to contact us today, or just head over to Patrick Hyundai in Schaumburg to find your next vehicle ! Our finance specialists are happy to help you choose the Hyundai lease best for you.

Categories: Finance, Tips