Lease Advantage

Not sure if you want to lease or purchase your next vehicle? Read on below to learn more about financing versus leasing your next GMC!

What Happens When You Finance a Vehicle

When you go to finance a vehicle, you start at the selling price and pay to zero. Because the buyer is paying on the entire vehicle, the payment is usually higher. The buyer is then obligated for the entire loan term, and the buyer assumes responsibility for the vehicle value which includes:

• Loss of value from damage to vehicle
• Loss of value from broken odometer
• Loss of value due to changing fuel prices
• Loss of value from changing market

As your vehicle’s mileage increases, additional maintenance will be required on things such as tires, brakes, transmission, and air conditioning, among others, which can be costly.

What Happens When You Lease a Vehicle

When you go to lease a vehicle, you start at the selling price but only pay until the option amount. Since the lessee is only paying on a portion of the vehicle, typically the payments are less. The lessee has no long-term obligations for the vehicle and is offered options and protections such as:

• Warranty for the entire contract term
• Guaranteed Option Value at Lease End, regardless of market changes
• No lost value from a repaired collision or broken and repaired odometer
• Protection against a loss from escalating or dropping fuel prices
• Gap Coverage (not all qualify)
• Ability to purchase the car after the lease or return it and walk away. If there is equity, you can purchase the car to trade or sell it.