A lease contract is typically a short-term arrangement, often between two and three years, where the driver is essentially paying for the use of the vehicle. Shoppers provide the dealership with a down payment and make monthly lease payments based on the calculated value of the vehicle at the end of the term. Because the payments aren’t based on the full value of the car, they are often lower than purchase payments. And since the lease term typically coincides with the vehicle new-car warranty, any serious issues are generally covered. The downside of leasing is that you do not own the vehicle at the end of the term and you cannot make modifications to the vehicle.
When you finance a vehicle, you agree to a fixed payment term with monthly payments that are each applied to the total value of the finance contract. Each payment builds equity in the vehicle and drivers who choose to can make additional payments and apply them directly to the principal balance, shortening the term of the contract. At the end of finance term, you own the vehicle outright and can trade it in toward the cost of a new vehicle, sell it, or keep it for as long as it lives. Of course, because drivers are paying the full negotiated cost of the vehicle, payments can be higher with a purchase contract.
For Naperville and Aurora drivers who like to upgrade frequently, don’t drive excessive miles, and enjoy the confidence of knowing their vehicle is covered should anything happen to it, leasing is an excellent option. For those who want full control over their vehicle’s appearance, drive more than standard mileage, and like the idea of eventually being payment free, purchasing is a good choice.
When you’re ready to get the financing you need to make that new car purchase happen, Chevrolet of Naperville is here to help. Contact us today at 630-357-6100 or stop by our showroom at 1515 West Ogden Ave. in Naperville, IL to speak to an associate about the difference between leasing and buying and the right option for you.