Are You Better Off Buying or Leasing a Chevy?
The answer to that question depends almost entirely on your particular situation and what you are looking for in a vehicle. That being said, we can still provide you with some general guidance to help you consider what might be best for you. The answer likely comes down to what you are looking for and need in a vehicle, particularly if you want to own your next car or not.
A lease can have a lower monthly payment, and you can enjoy a new Chevy without making a long-term commitment, whereas buying a vehicle has the benefit of long-term ownership. Let’s take a closer look at the ins and outs of buying versus leasing your next Chevy and see if we can figure out which option is right for you.
How Does Vehicle Ownership Work?
This is one of the most important considerations when deciding whether you should lease your next vehicle. When you buy a new or used car, you can either pay the full price to buy it outright or get an auto loan to help you afford it. While you pay off the loan, your lender technically owns the vehicle; they hold its title to protect their investment. Once you finish paying off the loan, then the title is transferred to you and you own the vehicle going forward. You can then do what you wish with the car—sell it, trade it, gift it to family, etc.
If you choose to lease a new Chevy, then you’ll find yourself in a similar situation initially. During the lease period, the leasing company (who your lease agreement is with) keeps the title and they own the vehicle, though you are responsible for it as the driver. At the end of the lease, unlike with a loan, the title is not transferred to you; you do not own a vehicle you lease, and you typically never will. The exception is if you choose to buy it after the lease ends; this is often an option but absolutely not a requirement when leasing.
Consider Your Payments With Each Option
Payments are generally the same whether you choose to lease a vehicle or get a loan, though there can be important differences based on the specific terms of your financing agreement. In either case, you need to make routine payments on your financing in order to stay up-to-date with it and not risk going into default or a similar situation.
Monthly payments are typical, though some loans might require payments every two weeks; again, this depends on the terms of your financing rather than the type of financing you have. In some situations, you might be able to pay off an entire lease up-front, so you do not have to worry about making monthly payments. This is not typical for a lease agreement, nor is it required when offered.
What to Know About Vehicle Mileage
This is an essential aspect of leasing a vehicle—one that not everyone knows about if they have never leased a car before. When you get an auto loan to help you buy a vehicle, there is typically no mileage limit involved; as long as you keep making payments, you can drive as much as you want. With a lease, however, there is a limit on how many miles you can put on the vehicle based on the terms of the lease.
If you exceed this limit, you will need to pay an extra fee. However, you can often buy extra miles ahead of time if you know you are likely to exceed it and want to avoid the fee. The exact limit and the cost of extra miles depend on the specifics of your lease agreement, so read your financing paperwork carefully.
How Wear and Tear Can Impact Your Options
When you lease a vehicle, you are essentially paying for the depreciation rather than renting or buying the car. This is why there is a mileage limit on a lease, as well as terms about how much wear and tear you can put on your leased vehicle. You are usually allowed to have very minor wear on a vehicle, such as tiny bumps or scratches on the body, minor wear to the interior, and similar things.
Routine maintenance is usually your responsibility with a leased vehicle, including oil changes, new tires, and similar types of service; some might be provided as part of the lease. Anything beyond what is specifically allowed by the leasing company and terms of your agreement is your responsibility to fix, so it is a good idea to get ahead of that before your lease comes to an end. When you buy a car with an auto loan, all wear and tear is your responsibility because it is your vehicle.
Which Option Is More Flexible?
This largely depends on what you are looking for. When you get an auto loan to buy a vehicle, you do not have to worry about things like mileage limits, how many years you can drive it for, or minor dings to the paint job. Since you are paying off the vehicle you intend to own, whatever happens to it is solely your concern.
Leasing a vehicle has less flexibility while you drive it since you have to follow strict guidelines that are part of the agreement. That being said, you have more flexibility long-term since you are only leasing it for a few years and then you are free to go for something else without any further commitment. Speaking of which…
What Happens at the End of a Loan or Lease?
Here we have one of the biggest differentiations between leasing and getting an auto loan, and one of the most important to be sure you understand. When an auto loan comes to an end because you have made your final payment on it, then the lender will transfer the title to you, and it is officially your vehicle.
Once everything is done, you can do as you please with your vehicle, as we said earlier, and you have no further obligation to the lender. If something happens and you fail to make payments on your loan, then you are still responsible for paying it back. Even in the case of repossession, the borrower still has to pay off the remaining value of the loan after the repossessed vehicle is sold at auction.
As your lease comes to an end, you will take your vehicle in for an inspection to see how it looks. If any issues need to be repaired, you should have them fixed—otherwise, you will be billed for the cost of fixing them after you return the vehicle.
Once the lease ends, you return the vehicle and sign some final paperwork, and if there are no outstanding fees or issues, then you are all done. You can simply walk away, lease or buy a different vehicle, or you may be able to buy the car you have been leasing if you decide you cannot part with it. This gives you much greater freedom compared to buying a car, but you do not own the vehicle at the end of the financing term.
We Make Figuring Out Financing Hassle-Free
As we have said, the right financing for your next vehicle depends on what you need, what works best for you, and whether you want a long-term commitment. If you want to own your car, then you should buy it—and that usually requires a loan. On the other hand, if you prefer to keep things free of obligations and just enjoy a new car for a few years, then leasing could be the perfect choice.
If you are still unsure which option best meets your needs, our financing experts at Chevyland are here to help with everything you require. We will listen to you, discuss your options, and walk you through the different terms and conditions of lease or loan offers to see what will best fit your budget and lifestyle. No matter what you are looking for, we will make sure you drive away completely happy.