Financing Your New Vehicle

When you buy a new or preowned vehicle at Spitzer Chevrolet Northfield, our expert finance department will find a lease or loan that fits your budget. They can help you decide between a lease vs. buying so you can make the decision that is right for you.

If you have any questions about the financing process and whether a lease or buying is best for you, we invite you to contact us at Spitzer Chevrolet Northfield.

Benefits of Buying

Deciding between a lease or buying can be tough. When buying a vehicle, you pay for the entire sticker price over a long term, usually between 48 and 72 months, to make monthly payments affordable.

With a car loan, you can modify the car to suit your style. If you feel like selling it before the end of the loan term and buying a new one, you can, but you do have to pay off the auto loan. As you make payments on your car, you build equity and the car eventually becomes an asset after your loan falls below the vehicle’s resale value.

Benefits of Leasing

When leasing a new vehicle, you have some limitations. Car lease prices are determined by the sticker price less the residual, which is the value of the car at the end of the lease term. Finance experts then figure the lease payments by dividing the lease amount by the term.

Because leases are for short terms, monthly costs are low, and they come with mileage limits. During your lease period, you cannot modify the car. At the end of the lease, you can return the car or buy it outright. Another benefit of leasing is that you can get a new car every two or three years. If you get a new lease every 24 or 36 months, you also get to benefit from continuously having a new car warranty as well as the latest tech and safety features.

Differences Between Leasing and Buying

When you lease or buy a car with a financing program, you will have loan payments each month. With a car purchase loan, you are paying to own the car. During a lease, you only pay for the time you drive the car – usually between two and three years. When you lease, you cannot sell the car during the term; but when you buy a car, you can sell it any time.

If you have good credit, the interest rate on a traditional car loan is usually lower than the rates on a lease. No matter how you finance a car, you do need to have car insurance. Most importantly, if you lease, you have mileage limits, often between 10,000 and 15,000 annually. If you go over the mileage limits, you will receive a fine for each mile over your limit. Often, the limitations on leases help choose the answer to the question should I lease or buy.

Spitzer Lease Program

At Spitzer Northfield Chevrolet, our finance department strives to make the car-buying process quick and easy. We offer an online credit application and a tool to help you figure your credit score. We also offer a trade-in calculator so you can estimate the value of your vehicle.

If you have any questions about the pros and cons of leasing and buying, our finance department at Spitzer Northfield Chevrolet is ready to help you.