Buy Vs Lease Information

At Richardson Chevrolet, we strive to be more than just a destination for the latest Chevy cars, trucks, and SUVs. Our goal is to help drivers from Houghton to Harrison, MI, find convenient and affordable financing that fits their needs and budget.

When it comes to paying for your new Chevy vehicle, you can pay cash in full, take out a loan, or lease it for a few years. Because paying in full is uncommon and self-explanatory, we'll take a quick look at the important characteristics of the other two methods.

The primary difference between a loan and a lease is that, with financing, you are paying towards ownership. With a lease, you are paying to use the vehicle for a period of time, and at the end of the contract, there a few options.

Leasing

Leasing Pros

• With a lease, there's no long-term commitment, and you can walk away at the end of the contract.
• Monthly lease payments are generally substantially lower than financing installments.
• A leased vehicle only incurs tax on the monthly payments, not its full price.
• Leased vehicles are covered under warranty for the duration of the contract.
• Contract terms protect lessees from depreciation.
• Lessees can enjoy the latest automotive amenities and technologies more often.

Leasing Cons

• Lessees don't own the vehicle and can't make major modifications.
• A leased vehicle carries monthly mileage limitations to preserve its resale value.
• Early lease termination incurs extra costs.
• Lessees are responsible for damage in excess of "normal wear and tear."

Financing

Financing Pros

• With a loan, you are paying into the principal and will own the vehicle outright at the end of the financing term.
• Financed vehicles can be personalized as the owner sees fit.
• A financed vehicle can be sold at any time.
• Making on-time loan payments is an excellent way to build or improve your credit score.

Financing Cons

• After the original warranty expires, the owner is responsible for repairs. (Extended warranties are available.)
• Monthly loan payments are generally higher than lease payments.
• Financing a vehicle requires paying tax on its full sale price.
• Financing terms are generally significantly longer than lease terms.

Lease FAQs

What are my lease-end options?:

You can lease a brand-new vehicle, convert your lease to a loan, or simply return the vehicle to the dealership and walk away (Disposition Fee may apply).

What is a Disposition Fee?:

As specified in the lease contract, the Disposition Fee is a fixed cost paid at the end of the lease term if the lessee chooses not to purchase a new vehicle. Chevrolet waives this fee if you lease a new GM vehicle.

Can I turn in my vehicle early (Early Termination)?:

Turning in a leased vehicle before the end of the term may result in considerable charges. These may include the remaining monthly payments of the contract plus an early termination fee. Refer to the lease contract or ask a finance representative for more information

Can I transfer my lease?:

GM Financial offers a lease assumption program that allows qualified lessees to transfer their lease to another party in the same state.

What is considered excess wear?:

The standards for excessive wear and tear are outlined in the lease agreement. Some examples of excess wear are cracked or broken glass, missing or broken parts, and extensive scratching.

For more information about leasing or financing a new Chevrolet near Houghton and Clare, MI, please contact Richardson Chevrolet. Our friendly and experienced financed experts will be happy to assist you.