Finance or Lease
Should I Finance or Lease My New Car?
“Lease my new Chevy or Finance my new Chevy – which one is better?”
One of the questions we encounter most often is whether customers are better off leasing or financing a new Chevy, GMC, Buick or Cadillac. Leasing and financing have their respective advantages and we have listed some of these advantages below. The lease vs. finance question varies depending on your driving habits, your estimated time of ownership, and other personal preferences. Check it out below and call us to discuss further.
Should you lease your new Chevy, Cadillac, Buick or GMC?
Here are some reasons to lease instead of finance:
Your car or truck will always be brand new: If you decide to lease a new vehicle every three years, you will always have the newest features and technology available. For instance, leasing a new Chevrolet Silverado or a new GMC Sierra will allow you to enjoy the great features now available on the 2014 models. People who lease their cars and trucks will always enjoy bright paint, fresh interior, and that “new car smell.”
Your payments will (typically) be lower in a lease: Since lease payments are incentivized by General Motors, leasing a new Chevrolet or other GM vehicle can typically help you enjoy a lower payment than if you were to purchase the vehicle outright.
You know exactly what your vehicle will be worth at lease-end: Getting a fair trade value is one of the most significant concerns for most car buyers. If you choose to lease your next car, you’ll never have to worry about what it is worth. This is because the “residual value” (or future value) of the car is determined at signing.
You have many options at lease end: Say you’ve leased your new Chevy truck for the past few years and it’s now time to turn it in. You will have the option to buy this truck for the “residual value” if you want to keep it. You will also have the option to upgrade to a new one and will likely qualify for GM loyalty rebates if you decide to do so.
Your vehicle will always be under warranty: Most Chevy, GMC, Buick, and Cadillac leases last for a maximum of 39 months. This means that your new car will likely be covered by GM’s warranty for the duration of your agreement. You can sleep easy, without having to worry about hefty repair bills.
You can pay for excess mileage at lease signing: Many customers feel that excess mileage is more expensive in a lease than in a purchase. This might not be the case. Excess mileage on a lease can typically be purchased for approximately $.20 per mile. This might be more cost effective than paying for the mileage in the form of depreciation, something you could encounter if you purchase your new vehicle.
Should you finance your new Chevrolet, Cadillac, Buick or GMC?
Here are some reasons to finance instead of lease:
You will own your vehicle when the payments are over: If you want to drive your new Chevy for many years, then you might be better off to purchase it. Although you’ll always have the option to purchase your car at lease-end, many customers feel it’s easier to simply own the car from the beginning.
You can lock in an extremely low-interest rate for a long period of time: Financing your new car enables you to take advantage of extremely low rates for a long period of time. For instance, if you finance a new GMC Sierra for 84 months at 4%, you’re guaranteeing yourself the ability to pay only 4% on that loan for seven years. This protects you against rising interest rates while allowing you the flexibility to pay off your car at your own pace.
You will be protected from mileage fluctuations: If you’re not sure of the direction your life will take over the next few years, you might want to consider financing your new car. If you agree to a low mileage Chevrolet lease and then take a job that requires you to commute an hour to work, you might find yourself in a difficult position. Financing the Chevrolet would allow you to put as many miles on the new car as needed. While this could also cost you in the form of depreciation and repairs, many customers find this to be less scary than paying excess mileage charges.
Interested in learning more about new Chevy, GMC, Buick and Cadillac vehicles? Would you like to hear more about the lease specials on the new cars at Banks Chevrolet Cadillac Buick GMC?
Contact us at 866-275-8431 to get a customized lease quote. Also, you can check out our lease specials.