When it comes time to get a new vehicle, one of the biggest decisions is whether to finance or lease. Both options have their advantages and drawbacks, and the right choice depends on your individual situation and preferences. At McGonigal Buick GMC in Kokomo, IN, we're here to help you understand the differences so you can make an informed decision.
What is Financing a Car?
When you finance a car, you're borrowing money to purchase the vehicle outright. You make a down payment, and then pay off the loan balance in monthly installments, typically over 2-7 years. Once you've paid off the loan, you own the car free and clear. Many of our customers in the Marion IN area prefer financing so they can ultimately own their vehicle.
The biggest advantages of financing are that you're building equity with each payment, and once the loan is paid off, you eliminate a monthly car payment from your budget. You're also free to drive as much as you want, modify the car as you please, and sell it whenever you choose. The main drawbacks are that financed vehicles require higher monthly payments than leasing, and you're responsible for all maintenance and repairs once the warranty expires.
What is Leasing a Car?
When you lease, you only pay for the portion of the vehicle's value that you use over the course of the lease (usually 2-4 years). Monthly lease payments are typically lower than loan payments, and you get the pleasure of driving a new car every few years. Leasing is a great option if you don't drive a lot of miles annually and prefer to always drive a new vehicle with the latest features, technology and styling.
The main benefits of leasing are the lower monthly payments and the ability to regularly upgrade to the newest models. Most leases also include warranty coverage, so you don't have to worry about unexpected repair costs. However, leasing does have some restrictions - mileage is usually limited to 12,000-15,000 miles per year, and you'll pay extra fees if you exceed those limits. You also can't customize the vehicle, and you must keep it in good condition to avoid wear-and-tear fees when you turn it in. With leasing, you don't own the car at the end of the lease.
Special Financing and Lease Offers on Buicks and GMCs
At McGonigal Buick GMC, we offer competitive financing rates and lease specials on our extensive selection of new Buicks and GMCs. Our knowledgeable finance team will work with you to find the ideal vehicle and payment plan for your lifestyle and budget. We invite you to browse our new inventory online and visit our finance center page to get pre-approved today.
Whether you decide that financing or leasing is right for you, we're here to provide a smooth, transparent experience from start to finish. If you have any questions or would like more information on our current finance and lease offers, don't hesitate to contact us or stop by our Kokomo dealership. We're just a short drive from Marion IN and look forward to serving you.