When Does it Make Sense to Lease?

2018 Chevrolet Equinox with teen driver
If you’re in the market for a new car, you might be overwhelmed by car financing information. While some people recommend buying your new vehicle, others swear by the flexibility of leasing. So, when does it make sense to lease over buying? Let’s go through the basics, so you can make the best decision for your needs.

Leasing vs. Buying

First, what are the main differences between leasing vs. buying? Buying a vehicle is a long-term solution. Generally, you’ll need to spend a little more on your down payment and monthly fees. But after years of paying off your loan, the car is yours to own. Leasing a vehicle is a short-term option. Typically, your contract will last two or three years – which means your car is often under warranty the whole time. At the end of your contract, simply turn the car into the dealership. This low-stress solution is a great option if you need a vehicle for a shorter period of time.

Why Lease?

If you feel like a car loan is too big of a commitment for your needs, you might be a good candidate for a car lease. See if any of these scenarios sound familiar:

  • Short-Term Stay: Moving somewhere for college or a short-term work stay? Leasing a vehicle might be an easier option than dealing with the resale issues of traditional car financing.
  • Luxury Shopping: Want to experience luxury without breaking the bank? Check out the promotions on a luxury car lease. You’ll typically save quite a bit, especially with a trade-in.
  • Work Vehicles: Need a car for your business? A leased vehicle is much easier to work into your expenses from an accounting perspective.
  • Upgrade Potential: Get bored with cars easily? You can turn in your leased vehicle after a few years and explore the latest models with the latest technology.

Find Your New Car Today

Ready to find your next vehicle? Contact us at Bowman Chevy in Clarkston, near Waterford and Detroit, and we’ll help you find just the right model for your budget and lifestyle. We can help you take a test drive, set up financing, and even learn what to do after buying a car. Stop by the dealership today!

Buying a Car Should Be Fun!

Approved car loan application formRyan Hotchkiss, Business Manager, fears that many people don’t look to finance a vehicle because they are afraid of embarrassment or rejection. “Buying a car should be fun,” he says, and “anyone can qualify.” Most dealerships advertise that they can finance anyone, or that everyone is approved, but most people are unsure of what this means or do not think that they will meet the correct qualifications. The truth – Ryan says, is that “anyone can qualify; however, this may come with stipulations.” This means that a buyer may have to put money down on the vehicle, go for a longer-term loan, higher interest rate or finance a less expensive vehicle. There are many great options available and we work with a variety of banks and credit unions in order to make financing work for each individual and situation.

Shop your car – not your credit. Each time you take a test drive – you should not be filling out a credit application. Each time your credit is run it shows as an inquiry on your credit report. While this does not necessarily hurt your score, too many inquiries can cause your score to drop and will also raise red flags when trying to apply for credit. Vehicles are an investment, not just a purchase.  Ryan says to “drive as many cars as possible, educate yourself and know what you are looking for. We can find you exactly what you are looking for, so shop around and compare.” Many dealerships advertise that they can offer you guaranteed financing and will urge you to fill out a credit application for your test drive. Ryan advises against this. Shop around – but buy from someone you trust. The financing process is the same anywhere you go, new or used, so find the car you want and then search for a dealer that you trust. Ryan hopes that we can be that dealership for you, and with an inventory of 400+ new and 150+ used cars with plenty of variety, we hope to help you find exactly what you need  – and finance it at the price you want!

Connect with Ryan on LinkedIn!

See Ryan’s Interview on Independence Television