Finance vs Leasing

Learn more, and determine the best way to buy a new Chevrolet

Financing vs. Leasing at City Chevrolet in Columbia City

Buying or leasing a new vehicle doesn't have to be complicated. Our finance team at City Chevrolet helps drivers all around Columbia City get into reliable vehicles every day. Although financing is by far the most popular way to get into a new or used car, many well-qualified drivers may not be aware that leasing could also be a great option for them. Depending on your lifestyle, budget, driving habits, and needs, financing or leasing could both be great options for you.

Buying or Leasing near Fort Wayne: Which is Better?

Answering this question is highly individualized and depends on your specific situation. Financing is usually the easier route to go for most drivers, and leasing is a great option for people who have great credit. This doesn't mean people with little or poor credit can't get a lease, but it is often a little more complicated and can end up being more costly than financing. On the other hand, leasing contracts typically have lower monthly payments than the average monthly loan payment. The best thing to do is make a side-by-side comparison by taking in your individual factors and the cost of the vehicle to see which option works best for you.

What Does it Mean to Lease a Car?

When you lease a car, the leasing company owns the car, and you pay a monthly payment based on the price of the car (capitalized cost), minus depreciation (residual value), interest (money factor), and other fees. Leasing uses terms like these that are different than financing terms. Other fees or terms associated with leasing are lease origination fees, registration fees, mileage fees, down payments, and security deposits. This might sound like a lot, but monthly lease payments are usually lower than a loan payment.

Leasing a car is sort of like having a long-term rental, and the contracts are typically pretty strict. We expect you to keep the vehicle in showroom condition and keep to monthly or yearly mileage caps. If you go over the agreed mileage in your contract, you usually have to pay extra. When you lease a vehicle, expect to return the vehicle as close to it's original condition as possible. In most cases, you can't do any customization, not even to change the wheels, like if you wanted to get bigger or low-profile tires. However, leasing a car means you can trade up for a new car and enjoy the latest technology every couple of years and not worry about haggling over a trade-in vehicle.

What Do I Need to Know About Buying or Financing a Car?

Financing is the most popular way to get a new or used vehicle because cars are so expensive that most people don't have cash on hand to buy them outright. When you finance a vehicle, you typically get a loan from a bank or one of our trusted lenders, and they hold on to the title until you pay it off. Once you have paid the loan in full, the car is yours, and you can do whatever you want, even turn around and sell it or use it as a trade-in.

When you finance a vehicle, the most important terms to pay attention to are your interest rate or APR, the term of your loan or how many months, and your trade-in value if you have one. You will also have to pay sales tax on the cost of your vehicle, registration, and other fees. You want your APR to be as low as possible to save you on the life of the loan. If you want your monthly payment to be lower on your Chevy Silverado, for example, you could put down cash upfront to lower your overall loan cost or ask for longer loan terms.

The Benefits of Leasing a Car Near Huntington

Some of the benefits of leasing include:

  • Lower monthly payments
  • Enjoying the latest technology and a new car every few years
  • Your car will always be under the warranty
  • Trading in a leased vehicle is easy
  • You may save on sales tax and have lower down payments

The Benefits of Financing Near Warsaw

Some of the benefits of financing include:

  • You own the car once it's paid off
  • No mileage restrictions
  • You can customize your vehicle
  • You can use your vehicle as a trade-in for a future purchase
  • You can sell whenever you want
  • Financing is easier

Financing and Leasing Specials Near Ligonier, IN

Be sure to check out our limited finance and lease specials. These deals can save you on specific models because we often offer special financing rates, low leasing fees, and much more. Be sure to check often because we change them or add new ones frequently.

Ask Our Financing Experts at City Chevrolet

Still have questions about financing or leasing? Our finance experts at City Chevrolet can help! Contact us today to start your side-by-side comparison and find out which option is best for you.

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