Research Financing vs Leasing

Financing vs. Leasing in Girard, PA

Unless you can pay in full for your new car, truck, or SUV, auto finance or auto lease plans are your only options. Which payment plan is best for you depends on your lifestyle, personal preference, and budget. To help you make a decision, the finance experts at McQuillen Chevrolet GMC in Girard, PA have laid out the advantages and disadvantages of lease and finance deals. Read on to learn more, and if you have any questions, give us a call at (877) 544-1134.

Pros of Financing

1. Gain full ownership. Since you’re paying for the entire cost of the vehicle, your vehicle will be yours after you make the final loan payment.
2. Financing is cost effective long-term. Purchasing one vehicle that will last you 10 years or more is more cost effective in the long run.
3. You have more freedom. Do you have a long commute? Do you want to add a lift kit to your pickup truck? Do you want to have the option of selling your car? There are no mileage or customization restrictions when you own your vehicle.

Cons of Financing

1. Larger down payment. A larger down payment is typically required, so you may find yourself stuck in a tricky situation if you haven’t saved up for a new vehicle or don’t have a car to trade-in.
2. You have a depreciating asset. Cars decrease in value as soon as you drive off of the lot, meaning you lose money if you decide to resell it.

Pros of Leasing

1. Lower monthly payments. When you lease a car, truck, or SUV from our Chevy GMC Buick dealership, you’re only paying for the residual value of the vehicle instead of its total cost.
2. No out of pocket auto maintenance costs. A brand new Chevy, GMC, or Buick comes with a bumper-to-bumper warranty that you will reap the full benefits of. The entire time the vehicle is in your possession, repairs and auto maintenance work won’t strain your wallet.
3. Enjoy the latest in technology features. Technology such as Bluetooth® hands-free calling and an advanced rearview camera system could be yours every few years when you lease from McQuillen Chevrolet GMC in Girard, PA.

Cons of Leasing

1. You will not automatically gain full ownership. When you’ve reached the end of your lease term, you return the car to McQuillen Chevrolet GMC and then decide whether to walk away, purchase it, or lease another vehicle.
2. Mileage and customization restrictions. Adding aftermarket parts and exceeding your contract’s mileage restrictions, usually limited to 12,000 miles a year, will result in fees and penalties. That also includes any excessive wear and tear to the cabin and exterior.
3. Difficult to gain approval with poor credit. Lease deals are typically reserved for people with a credit score over 700.

Finance or Lease a Vehicle at McQuillen Chevrolet GMC

Now that you know the pros and cons of buying vs. leasing a new vehicle, apply for financing to get the process started. Complete our secure online application with your contact information and vehicle of interest from our new inventory, and a finance expert will get in touch with you shortly. If you have questions or would like to speak with a team member at McQuillen Chevrolet GMC in Girard, PA, give us a call at 877-544-1134.