Should You Lease or Buy a Chevrolet from Walker?
While there may be several reasons why people consider leasing a car or truck from Walker Chevrolet in Franklin TN, three of the most common are: They enjoy driving a new vehicle every few years, they use the vehicle for business or they want the lower monthly payments typical of a lease.
Is Leasing a Chevrolet Less Expensive than Buying?
While the price of the Chevy may not be less expensive, the monthly payments for leased vehicles are typically lower than the monthly payments when you buy. This is because you are only paying for the part of the car or truck that you are using. In other words, you are paying for the depreciation on the vehicle over the duration of the lease. When you buy, your monthly payments reflect the entire purchase price of the vehicle. Because of this, people who choose to lease can often times lease a more expensive vehicle and have the same monthly payments as if they bought a less expensive vehicle.
What Other Costs are Associated with Leasing?
Similar to renting an apartment, costs associated with leasing a Chevy typically include first month’s payment plus a security deposit that is refundable. Often gap insurance, which covers the difference in price between the cars value and what your insurance company will pay if the car should be damaged or stolen, is also required. There may also be a mileage fee if you drive over the annual mileage limit set in your lease agreement. These upfront costs are usually not required when buying a vehicle. Other costs such as a down payment, sales tax (on the full purchase price), loan interest, and miscellaneous government fees usually come into play when buying.
What Happens at the End of My Chevrolet Lease?
When your lease expires, you pretty much return the Chevy to the dealership and walk away or discuss the option to purchase the vehicle from the dealership. Sometimes there may be end of lease costs for things like excessive mileage or scratches and dents that are considered beyond normal if you do turn the Chevy back in to Walker Chevrolet. Additionally, when turning in a lease you usually don’t retain the same value as if you were trading in a car you purchased, and you can’t sell it to a third party without purchasing the balance of the value of the car. In other words, the trade in value of a vehicle you buy is usually worth more and you always have the option to sell your Chevy to a third party. Take the survey below to help decide if leasing is right for you.
You're more likely to buy
- When you lease a car, you are typically capped at 15,000 miles a year. Additional mileage can cost you up to 35 cents per mile. And that can really add up.
- If you like to personalize a car, this investment can be lost on a leased car.
- If you like the idea of ownership, you are less likely to be happy with the lease option.
- If you like the feeling of accomplishment that paying off a large purchase brings and should consider that when you lease a car, the payment ends only when you return the car.
- If the car you presently own is over 3 years old you are more likely a buyer. While not always true, you can usually drive for less if you're willing to buy and drive for at least 3 years.
- If you don't mind doing your own car repairs, you probably don't mind driving a car after the warranty expires.
To see the results for a person more likely to lease, Click here
Get pre-approved for financing
Search our inventory
You're more likely to lease
- Lease arrangements usually involve a 15,000 miles-per-year cap and charge for extra miles. If you drive very little, you may be a candidate for a luxury lease.
- When you negotiate a 24 or 36-month lease, you can be sure you'll always be driving a new vehicle.
- Although you need to maintain and repair your leased vehicle just as you would an owned vehicle, because you typically lease for 2 to 3 years, the car is normally under warranty.
- Many people prefer to drive a vehicle that is priced above their means and leasing provides the solution.
- If you don't mind not owning the car, you are free to enjoy the benefits of leasing like low monthly payments and a low down payment.
- If you own the company, and you use your car for business, check with your tax advisor. You may be able to deduct your auto expenses, including your monthly lease payment. And if the company you work for gives you a monthly car allowance, you may want to lease since you'll be able to drive a nicer car for a lower monthly payment.
To see the results for a person more likely to buy, Click here.
Get pre-approved for financing
Search our inventory
Leasing allows you to pay for the portion of the vehicle that you expect to use (pluse lease charges) rather the full price of the vehicle, as with traditional financing.
As a result, the key benefits of leasing include:
1. You can drive more vehicle for a smaller monthly investment
2. You have a guaranteed purchase price
3. GAP insurance is typically included with most leases
4. Protection against negative equity.
5. You can drive a new vehicle more often
6. With a 24 or 36 month lease you will be covered for most of your lease by GM's Comprehensive Bumper-to-Bumper, 3-Year/36,000 Mile Limited Warranty included with every New Chevrolet Model.
When deciding whether to lease or finance, you need to weigh the advantages and disadvantages of each alternative and how they fit with your particular driving needs and budget. Walker Chevrolet will be glad to provide you with payment examples for each alternative, to help you make this important decision.