Chevrolet Shopping Tips: Financing Vs. Leasing

Key Takeaways:

• • The process of buying a new vehicle starts with the decision to finance or lease it.
  • You can lease your Chevrolet on an ascertained term with the mileage cap.
  • Advantages of a car lease may include a lower monthly payment.
  • When you finance, you own the car once the loan is paid.
  • Financing benefits may include the ability to sell or trade in the vehicle.

The excitement of buying your first car is often quickly replaced with the anxiety of finding the right financing option. Do you go with a loan or lease? Which is right for you? Does leasing a Chevrolet help save money, or is it the other way around? These and several other questions can pose a significant hurdle in your way of car buying.

To make things easier, Auffenburg Chevrolet of Farmington brings you this brief guide so you can purchase your Chevrolet without any trouble.

Pros of Leasing a Chevrolet

As you may already know, leasing is similar to renting a vehicle but involves some intricacies. You make monthly payments to cover the cost of depreciation, taxes, and fees. The car is returned at the end of your lease, and you’re done with it. Leasing a vehicle has the pros that make it an attractive option. Let’s look at a few.

The Charm of New Vehicles

Leasing a Chevrolet gives you the joy of switching between different models now and then. So let’s say you’ve driven the Chevy Cruze for the past two years, and you’re currently eyeing the Chevy Silverado. With leasing, you can achieve your dream of driving a new car without committing to a new one now and then.

Easy On The Pocket

Who wouldn’t want to save some extra dollars they can use? Leasing a Chevrolet requires lower monthly payments as compared to financing one. The difference may lie somewhere between 20 to 30 percent. If you’re good at negotiating, you can get a lower leasing rate from your dealership in Viburnum, MO.

Ease of Trade-In or Upgrade

When leasing a Chevrolet, you’re essentially renting it for a set period. Once your contract expires, you can either trade your car for a new one or return the vehicle to the dealership with no strings attached. On the other hand, if you finance a vehicle, you’ll be required to sell the car or pay off the loan before upgrading to a new model.

Cons of Leasing a Chevrolet

Mileage Limitations

You can say goodbye to long road trips when you lease a car. Most leasing companies put strict mileage limits on their vehicles. For instance, the average mileage limit for a car lease is between 10,000 and 15,000 miles per year. So, buying a car could be more feasible if you drive more than that regularly.

Lack of Ownership

Some people get an emotional attachment to their cars and enjoy being able to modify them as they see fit. You may like to put your personal touch or the idea of having your vehicle registered in your name, but you can’t do so while leasing. A leased vehicle is a car you borrow from the leasing company for a time.

Wear and Tear Costs

Driving a car regularly involves costs, like oil changes, new tires, and the occasional fender bender. When leasing a vehicle, however, you’re responsible for any damage that exceeds the car’s everyday wear and tear. So if you’re leasing a Chevrolet and get into a fender bender, you may have to turn out your pocket to fix those new dents.

Pros of Car Finance

Financing is the better option for car buyers who want to own their car outright. Once you make your final car payment, the vehicle is officially yours, and you can do all you want in your will. The limitations exist only in dreams when you’re a car owner. Let’s look at what pros and cons car buying brings.

Equity Build-up

Chevrolet financing is lucrative in the sense that it helps build equity. With each car payment, you’re building ownership of your car. In the future, if you want to trade in or sell your car, you’ll be able to command a higher value because you own a more significant percentage of it.

Drive Endlessly

Make your dreams of a cross-country road trip come true. Now that the car is yours, nothing is stopping you! Forget about the mileage restrictions or turn-in penalties leases typically have.

Modifications Freedom

When your car becomes your own, it’s natural to mark your territory and make the car feel like home. With leasing, restrictions on aftermarket modifications are common because you technically don’t own the vehicle. But now that you’re the boss, you can do whatever you want to make your car feel more like you.

Cons of Chevrolet Financing

Value Depreciation

One thing we all despise about Chevrolet financing is that once the car is yours, you can’t control its depreciation. Sooner or later, it will be time to trade in or sell, and you’ll have to accept that your vehicle is now worth much less than what you paid for.

Time Restricted Benefit

If you need to sell your car before the end of your loan contract, you may owe money on the vehicle. And unless you can put up with the loan for the entire 60 months (or however long you agreed to financing terms), you can forget about your car plus the money you already paid.

Repair and Insurance Cost

We hate being the bearer of bleak news, but things happen – accidents, dents, engine problems. These all come with a cost; car buying can be pretty pricey. You have insurance to help with the accident repairs, but your deductible will come from your pocket.

Final Verdict:

Our job to enlighten you about leasing a Chevrolet or buying one is done here. Now you decide to make! Thoroughly examine the pros and cons to see what suits you the best. If you have any questions, don’t hesitate to contact your nearest Chevrolet dealer.

Chevrolet Dealership in Viburnum, MO

At Auffenburg Chevrolet of Farmington, serving Viburnum, MO, we have an extensive new Chevrolet inventory. You can explore all the financing options we provide and take a test drive. See us today, and let’s get you into the Chevrolet of your dreams!

Apply for Chevrolet financing today!