Should you Lease?

If you’ve been shopping around for a new Chevy you may be wondering whether it would be better financially for you to buy it outright or lease. There are a number of benefits to both as well as drawbacks. Therefore, it’s a good idea to make sure you consider all the factors involved in leasing and buying before you make a final decision.

For many people, one of the main advantages of leasing over buying is the potential cost savings. If you’ve paid attention to lease advertisements for new Chevrolets you most likely know that it is much cheaper on a per month basis to lease a new Chevy than actually buy one outright. That can be quite appealing if you are shopping around on a budget. To determine whether this is really as good of a deal as it might at first appear to be; however, it is important to look a little deeper at all of the factors involved in leasing and buying.

Your lifestyle choices can play a role in whether leasing is a financially a good deal or not. For example, it’s important to consider how many miles you might be likely to drive on an annual basis. Most lease terms require that you not drive more than a specified amount of miles per year or run the risk of paying a penalty at the end of the lease term. For most lease agreements, this is a 10,000 mile per year cap. That’s fine if you only drive short distances each year and plan no long trips. If you like to take a family vacation every year and/or you commute to work on a daily basis this can quickly become a problem. As a matter of fact, the average driver puts at least 15,000 miles per year on his or her vehicle. It is also important to know that the penalty assessed comes in the form of a charge per every mile you go over the limit. Depending on how far over the limit you go, it could add up quite quickly.

You should also think about which type of vehicle will best suit your needs and understand that most lease advertisements are for certain models only; usually the base model with no extra trims or options. If you’re looking for something a little fancier with more options and an automatic transmission, be prepared to pay more on the lease.

What about the down payment? Are you prepared to make a down payment on a vehicle that you will only be leasing? Don’t be surprised if the terms of the lease require you to make a down payment of at least $4,000. A trade-in might be able to take care of that requirement but know that you are in essence trading in a car to simply rent another one for a long period of time.

The length of time you plan to keep the car can also impact whether this is the best deal for you or not. Individuals who like to drive a brand new vehicle all the time and who typically trade in a car every couple of years will find that leasing is financially advantageous. On the other hand, if you like the idea of paying off a vehicle and not having a note, a lease agreement won’t provide that benefit for you.

Keeping these tips and guidelines in mind when you are considering the purchase or lease of a new Chevrolet can assure that you make the decision that is financially the best for you and your situation.