Dedi will perform a lot better and be more consistent and reliable. They’re not THAT expensive if you’re making nontrivial use of them. Otherwise maybe you can keep moving around between Contabo products. Keep in mind too that hdd performance will seem a lot better when you’re not sharing it with dozens of other users. I have an HDD server and it’s fine for browsing. Might not be great for large seek-intensive databases but I’m not currently doing that
Anyway you can also ask on lowendspirit.com which is a forum about budget vps.
Added: also look at kimsufi.com as an alternative to Hetzner.