Finance vs Leasing

There are advantages and disadvantages to both financing and leasing a vehicle. There is certainly no wrong way to go about it because it really just comes down to what your needs and preferences are.

If you’re in between finance and leasing allow us to help you decide which one is right for you at Serra Buick GMC Rochester Hills.

Upgrades vs Ownership

If you’re someone who likes to have the latest features and technology in your vehicle, leasing might be perfect for you. When you decide to lease you're essentially renting your vehicle for a period of time and when that time is up you can choose to switch to a newer model.

Financing a car with a traditional auto loan also has its perks. You’ll slowly begin to build equity on your vehicle and in the end when it’s all paid off you are left with something of value that fully belongs to you.

Payments

Auto loan - Loan payments are based on how much you owe the loan lender and can tend to be more expensive than lease payments.

Lease payments - Lease payments are based on the amount of the car’s value that will depreciate during the lease term. Even if the loan term is twice as long as the lease term, the lease payments tend to be less.

Flexibility

If you’re someone who wants to be able to customize your vehicle in the future, leasing may not be for you. When leasing you aren’t able to change or customize your vehicle because it has to be brought back to the dealership in top condition. You also can’t choose to get rid of the vehicle at any time like you can when you finance.

Returning a lease early can actually cost you more money, while with financing as long as you pay off your remaining balance you can get rid of the car at any given time.

Extra Costs

If you return your lease vehicle with damages or you end up going over the allotted mileage you’re going to end up having to pay extra.

If you don’t want to risk extra costs, financing is the way to go since you don’t have to return the vehicle so you can do whatever you want to it.

Buick and GMC Financing and Leasing in Rochester Hills

Once you decide if you want to finance or lease your next vehicle visit us at Serra Buick GMC Rochester Hills. No matter your credit situation our expert staff and finance team are here to help you find an auto loan or lease terms that work for you.