It’s a question as old as the auto industry itself, should you lease or buy your next vehicle? Drivers all around will give you different reasons why they answer one way over the other, but ultimately the question remains unanswered. That’s why we’ve assembled this quick guide, to help you learn the real differences between Chevy leasing and financing.
What is Leasing?
A vehicle lease is a form of long-term rental, in which the lessee will assume stewardship for the vehicle over the course of the leasing period without taking on the full responsibility of ownership. Like vehicle financing, a lease requires lessees to pay a monthly charge to maintain the vehicle, however this charge is usually less than the monthly payments made to finance a vehicle.
What is Financing?
On the flipside, financing a vehicle entails applying for a loan to purchase the vehicle, and then paying off the loan over a set period detailed in the loan agreement. Buyers must first apply for a loan and then agree to the terms laid out in the loan offer provided by the lender.
What’s the Difference?
While there are many similarities between the two processes such as monthly payments and the requirement of some kind of up-front cost, they are very different financial processes in the end. Loan payments are oftentimes more expensive than lease payments, but this is made up for by you being able to keep the vehicle rather than return it at the end of the agreement! The decision ultimately boils down to how much risk are you willing to take on to get back on the road?
Sound straightforward? We think so too! Make sure to take some time to think about which option sounds better for your situation. Once decided, make your way down to Valley Chevrolet of Hastings to check out the amazing selection of new and used vehicles!
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