Why Leasing Your Next Chevrolet Vehicle is the Right Choice
If you are one of the millions of Canadian drivers who can’t wait to get behind the wheel of a new car or truck every two or three years, the lower monthly payments and warranty coverage can be a very smart choice.
Leasing a vehicle is a popular new strategy with many advantages. When you lease, you are always driving one of the latest and most up-to-date models of Chevrolet. Another advantage is that as you drive, you pay for what you use. You’re not constrained by the selling price of the vehicle as you are when you buy.
The benefits of leasing
Having your vehicle leased allows you to enjoy the latest styling, technology, and performance. Not only does this apply now but once again in a few years. And while many new car loan contracts can last from 4 to 7 years, with most contracts, the lease term is usually only 2 or 3 years.
You could also be eligible for “pull-ahead” offers, which allow you to get into a new lease even earlier. One of the best options for leasing is that if you decide you want to keep the vehicle when the lease expires, you can still buy it at the end of your lease.
Another great advantage of leasing a new car or truck is that the price you’ll pay each month is like purchasing a pre-owned vehicle. The main difference between leasing and purchasing your new vehicle is that actual ownership will not be in your name.
On the surface, no one else will know the difference. For all practical purposes, your friends and neighbors won’t know whether you own or lease your new Chevrolet. What they may eventually notice is that you never seem to keep your vehicles very long. After just a few years, they will probably notice that you always seem to be driving a new model.
Leasing requires less money up front. When you have a good credit rating, you can sign up for a lease by making just the first and last payment. This completely avoids the thousands of dollars necessary with a large down payment when buying a new vehicle.
Many drivers are concerned about the mileage limits that come with a leased vehicle. But after adding up their commute mileage to work, plus a few occasional long trips, they find the limits aren’t as troublesome as they first thought.
It’s possible with some lease contracts to allow up to 120,000 km over a total of 3 years. This can help high-mileage drivers enjoy the advantages of leasing and not worry about going over their mileage limit.
With a lease, since you’re paying to drive the vehicle for a fixed period of time, the car payment is usually lower than when you make a purchase. Ask your dealer to go over all of your options to see what the actual cost difference will be between leasing and buying a vehicle. Also, with GM vehicle leasing, you could also quality to save money with loyalty programs.
We all know that with the purchase of a new vehicle, its value decreases as soon as you drive it off the dealer’s lot. This is generally true for the most part, but it will vary greatly depending on the type and model of the vehicle. With leasing, this becomes a non-issue.
Are there disadvantages?
Leasing can have disadvantages though. When you lease a vehicle, it’s not yours. You do not own it because it’s owned by the leasing company. And because it’s their vehicle, they can put restrictions on how you use it, how many miles you can drive and how you care for the vehicle.
Nearly every lease has mileage restrictions built into the contract. These generally allow you to drive between 15,000 and 25,000 km per year. If you go over that mileage, there will be steep excess mileage charges. Your actual mileage can vary each year since the leasing company isn’t going to check at the end of each year, but they will check when you turn the vehicle in. And if the mileage is over the total mileage restricted by the contract, you will be facing a stiff penalty.
Excess wear fees
While normal wear and tear is expected when you drive a leased vehicle, a lease will require that you return the vehicle in nearly its original condition. There should be no damage, no excessive wear, or customization that cannot be removed. If the vehicle doesn’t meet these requirements, you can be charged for excess wear even if your mileage was within what the lease requires. You will also need to show proof that all of the recommended services were performed at the correct time and mileage.
The specific requirements for your lease will vary according to the contract you sign. But you should read it carefully. Never assume that if you were allowed to do something with a previous lease, you would also be able to do the same thing with the next one.
Your leasing company also may not allow you to use your vehicle for ride sharing. You may not be authorized to share rides working for companies like Uber or Lyft. If you are using your vehicle for ride-sharing, make sure the lease allows you to do so. And be sure that you don’t exceed your mileage restriction while operating a ride-hauling business.
You have no equity
Vehicle leases are structured so that you dont gain equity or ownership in the vehicle. When you return it at the end of your contract, you will not receive any money to use as a down payment to trade-in on your next vehicle.
If you decide to buy the car at the end of your lease, you will need to finance the remaining balance. Their is a chance the interest rate will be more than it would be for a new vehicle because your lease return is a used car.
The good news is your can turn your lease into the dealership and get a new vehicle with no miles. You can drive off the lot in a new current year model without worrying about your trade unlike a traditional finance loan.
Leasing with Viking Motors
Leasing with Chevrolet’s GM Financial program at Viking Motors is today more convenient than ever. And you can use the secure online credit application to save time before walking into our dealership.
Viking Motors is Manitoba’s premier source for both new and high-quality used vehicles from Chevrolet, Buick, and GMC. Whether you’re looking to purchase or lease a top-quality new or used car or truck, let our experts be your guide in finding the right vehicle for you and your family.