The Benefits of a Chevy Lease
When you’re searching for a new car, all the number-crunching that comes with purchasing a new set of wheels can be dizzying. Not only do you have to pony up a sizeable down payment, but you also have to think about the taxes and fees that come with that new set of wheels (i.e., title and registration. The word on the street is that buying a car is a better option than leasing one. After all, every payment you make towards a car that you purchase goes towards owning that car by the end of the loan’s term. However, there are some situations where a new Chevy lease makes more financial sense.
Low or No Down Payment
Smart shoppers usually try to put down at least 10 to 12 percent of their new car’s cost, and with the rising price of cars, that 10 or 12 percent can be a pretty substantial chunk of change.
A lease, on the other hand, often requires little to no down payment, especially if you have a good credit history. These lease deals are often more affordable than a down payment on a new car. Unlike homes, which increase in value the longer you hold onto them (we hope), cars are a depreciating asset. Meaning, they lose value with age. Depending on your short- and long-term financial goals, it may make more sense to hold onto your cash instead of sinking it into a down payment on an asset that is only going to decrease in value.
Lower Monthly Payments with a Chevy Lease
One of the biggest benefits of leasing a car is that your monthly payments on a lease are often lower than they would be on a car loan. This is because of the way that leasing works.
Say that you want a $20,000 car that is expected to depreciate in value over the next three years, meaning that it will be worth $12,000 at the end of that period. If you were buying that car, you’d have to make payments on all $20,000, but leasing that car means that you’d only be making payments towards the difference between the initial cost and the cost at the end of the lease. That cost would be $8,000 in this example. In other words, leasing means you’d be making payments on $8,000 for a car that is worth $20,000.
Lease obligations also don’t get reported on your credit, which can be beneficial for companies that need to acquire a lot of cars or for people who are trying to build their credit. Plus, people who use their cars for work can write off their lease payments on their taxes. All in all, those lower monthly payments could make a lot of financial sense for someone without much cash flow.
More Car for Your Money
Because your monthly payments will be lower for a car that you lease, you’ll be able to get more car for your money.
To use the previous example, if you end up leasing a $20,000 car that depreciates to $12,000, you’d only be making payments on $8,000. If you were prepared to make payments on the whole $20,000, you could get a nicer car and still be making the same payments as you would be on a loan for a cheaper car.
Upgrade More Often
Because the terms of a lease are usually only two or three years long, you will find yourself driving new cars much more frequently. Buying a car generally means that you’re stuck with that car until you pay off the loan, usually in five years or so. If you decide you want a new car before then, you either have to try to sell your car on your own or trade it in at a dealership. Both options can end up costing money instead of saving money.
However, if you lease a car, you simply return it to the dealership at the end of the lease and then lease or buy another car. If you’re the type of person that likes to drive a new vehicle every few years or so, leasing would be the best option for you.
Save on Maintenance Costs
Driving a newer car for less time means you’re driving the car during the most trouble-free times of its life. That means you won’t have to shell out huge sums of cash for costly repairs that can happen as a car ages.
Also, leasing a new car means that any repairs or maintenance costs your car might need should be covered under the manufacturer’s warranty. Taking advantage of the new car’s warranty means that you’ll be saving on basic repairs like oil changes.
There are many potential benefits towards getting a Chevy lease at DePaula Chevy. You will likely have no or a low down payment, enjoy smaller monthly payments, drive a nicer car for a better price, get a new car more often, and save money on maintenance and repairs. Though there are many benefits to leasing a new car, there are also benefits to buying. Be sure to consider your options and your unique financial situation carefully before making any decisions.