There are a number of factors in choosing whether Leasing or Buying a new vehicle is best for you. Leasing a GMC long-term or buying the vehicle through a loan come with different pros and cons. Below is a breakdown of each.
When leasing a vehicle from AutoNation GMC Mendenhall, GMC will remain the owner of the vehicle. You will be permitted to use the vehicle for the length of the lease contract. At the end of the lease you will have the option to purchase the vehicle.
When you buy a new GMC from AutoNation GMC Mendenhall you will own the vehicle once financing is completed.
When starting a lease, you may pay "cap cost" reduction (what would be called the 'Financed Amount' in a loan), government, or lessor charges. Other costs include insurance, security deposits, the first month's payment and any prior lease or credit dues remaining.
When you buy your GMC, you could pay the full price and purchase the vehicle outright or you could make payments through a loan. Either way, you will be paying sales tax and other state, government or lender fees and taxes. Other costs include insurance, prior vehicle loan or credit balances, and, if financed by a loan, the first month's payments and a security deposit.
Monthly payments for a leased, new GMCs are generally lower as you only pay for the vehicle's depreciation. Depreciation is measured by the vehicles market value over time and is not tied to the full purchase price of your new GMC vehicle. Rental charges, sales tax, use tax and other affiliated fees are also associated with leasing a new vehicle.
Monthly payments for financed purchase of your new GMC are often higher due to paying for the entire price of the GMC, including state taxes and fees. Though, you will own your GMC at the end of your loan's term.
Some lease requirements restrict lessees from moving out-of-state with the vehicle. If you are considering a future move, you should check the terms of your lease closely and speak with your dealer regarding questions. Additionally, most leases restrict the maximum number of miles the lessee can drive the vehicle per year, with overage charges for additional miles driven.
Buying a vehicle, either outright or by financing, often do not restrict moving within a country, but may restrict moves outside the country. There are no mileage restrictions or penalties with your own vehicle. You are free to drive the vehicle as you like.
You will be required to keep insurance on your leased vehicle meeting the requirements outlined in your contract.
You will be required to keep insurance on your purchased vehicle meeting the requirements outlined in your contract. If the car is purchased outright, you will need to meet the requirements of your state.
GAP insurance helps to cover the difference in the actual value of a vehicle and the balance remaining on financing in the event of a disaster, such as a total loss. GAP coverage is usually included in lease agreements. If it is not, you can usually purchase it.
GAP coverage is not required for financing a purchase it is still a good idea in case of a disaster, such as a total loss. Comprehensive and collision coverage may not cover the full value of the totaled car, but GAP insurance would. It is not usually included in loan agreements and must be purchased separately.
At the end of the lease term, there are several options. You could return your vehicle and get a new leased vehicle, you could walk away from leasing altogether, or, if you really enjoyed your vehicle, you could purchase your leased GMC at the end of your term.
When the last payment for your vehicle's loan leaves your account and you receive your GMC title, you OWN your vehicle! It's up to you to keep it, sell it or trade it.
LEASE OR BUY A GMC IN MEMPHIS
Interested in whether you should lease or buy a GMC in MEMPHIS? Check out our handy guide above for more information on whether leasing or buying is right for you. Still not sure? Feel free to give us a call at (901) 881-0179 to speak with one of our knowledgeable team members. We will go through your unique situation to help better understand which option is right for you.
You may also want to check out our latest lease and finance specials to help influence your decision. At AutoNation GMC Mendenhall, we are dedicated to getting you behind the wheel of the GMC car you have been dreaming about. We look forward to demonstrating our commitment to excellence!
Get Hours and Directions to AutoNation GMC Mendenhall
See the map below or request directions to AutoNation GMC Mendenhall. We're one of the leading GMC dealers in the area, and we want to show you why. Call us at (901) 881-0179 if you have any questions.