Buying vs Leasing
Buying vs Leasing in Adams, MA
At Haddad GMC in Adams, MA, we're committed to helping our neighbors from local Massachusetts communities find the GMC Sierra 1500 pickup or GMC SUV that will make a positive impact on their lives. But maybe you're thinking it's complicated to figure out how to pay for your next vehicle. Fortunately, we know that part can be simplified so let's compare the pros and cons of buying vs. leasing your next GMC vehicle.
We can make the "loan vs. lease" decision easy to understand
We have friendly, knowledgeable specialists in our finance center who are very good at explaining the difference between getting a loan vs. getting a lease. They're also good at helping you get qualified for whichever financing method you prefer. Then they can help you get affordable monthly loan or lease payments. We won't cover all the differences between a loan and a lease, but let's look at some of what sets your choices apart.
Advantages of a buying a GMC vehicle with a loan
Getting a GMC loan simply means you're borrowing money from the lender to buy the truck or SUV, then paying it back with monthly payments. Every time you make a payment, you're gradually building an ever-increasing share in the ownership of the vehicle. That ownership share, or "equity," is like a savings acount with your name on it. It's money that Lenox, MA buyers can someday use to help pay for their next car. Here are some key benefits with a loan:
- You're actually buying a GMC model from our new inventory so you can eventually own it by paying off the loan
- With each loan payment, you're building cash value that can add up to thousands of dollars' worth of value
- Once you play off the loan, you won't have any more monthly car payments
- The cash value, or "equity," is real money that can help you pay for your next vehicle
- By making your loan payments on time, you're helping to build your credit score
What's involved in leasing a GMC truck or SUV
Leasing a car is like renting it for a specific period of time: Usually 36 months. The monthly payments will probably be lower than what you'd pay with a loan for the same vehicle. But it's important to remember that you aren't building any ownership stake, or cash value, in the vehicle. At the end of the lease, you don't have any equity at all and have to start over but you can choose to stop leasing and start buying your next vehicle with a loan. A summary of things to keep in mind about a lease:
- With a lease, your monthly payments are usually lower than loan payments
- At the end of the lease, you don't have to sell the car because you won't own it, so you have to return it to us
- With a lease, you're limited on the number of miles you can drive without paying a penalty, whereas with a loan, you can drive as many miles as you want
- A lease requires that you pay for any excess wear-and-tear or damage to the vehicle when you return it, and you won't be able to customize that GMC truck or SUV the way you could if you bought it with a car loan
Use your car's trade-in value to pay for your next GMC vehicle
The biggest financial advantage you have when you get your next vehicle is the amount of cash value that you've built up in your current car. You can find out what that is quickly and easily by submitting our Blue Book trade-in value form. Of course, if you leased that vehicle you won't have any trade-in value which is something to keep in mind before getting a lease. We'll be happy to tell you more about your options when you visit with us at Haddad GMC in Adams, MA.