Leasing vs. Financing a New Chevrolet

Leasing vs. Financing a Chevy

Leasing vs. Financing a New Vehicle at Victory Chevrolet of Savannah

There are pros and cons to both leasing and financing. At the end of the day, you will need to determine which of these options will work best for you and your lifestyle. It is always important to pay attention to the details offered on the leasing or financing agreement from each dealership and find the best fit for you. Additionally, a dealership may include additional rebates in a lease agreement that a customer of a loan would not receive. It may not be practical to compare leases and loans on a head-to-head basis because the “money element,” or interest rate, on a lease may differ from the interest rate that usually comes with a loan. At Victory Chevrolet of Savannah, we service several cities including Smithville, Independence, Kansas City, and many more. Stop by today to find out more about your leasing vs. financing options.

General Info on Loans and Leases

When you take out a loan from a bank, credit union, or other lenders you end up paying back the money on a regular basis for a specified period of time, usually over months or years. The interest on the loan is covered by a portion of each payment, with the remainder going toward chipping away at the principal. Leases allow customers to drive a brand-new vehicle for a predetermined period of time in exchange for a monthly payment. Although that payment is frequently less than the monthly cost of financing a new car, customers are still required to give the vehicle back at the conclusion of the term of the lease, you never really build any equity in a vehicle.

Other Options to Long to Term Loans

If you want to drive a new automobile every few years, taking out a loan to purchase a vehicle is not going to be the best option for you. You would be better off leasing because if you took out a long-term loan and traded the vehicle in early, you would end up paying so much more in interest charges than paying down the principal. It is simple to become “upside-down” with a loan with a longer-term loan. “Upside down” in a loan simply implies that you owe more money than the car is worth, and that situation persists and worsens over a long period. The trade-in, resale, or insurance value of the vehicle is probably going to be less than what you still owe on a loan if you need to get rid of it sooner than expected, or if it is destroyed or stolen.

What To Keep in Mind Before Leasing or Financing

It is important not to forget that the better your credit score, the better of a deal you can make whether you plan on leasing or financing. It is also a good idea to figure out your monthly budget so you can go into either leasing or financing with a firm idea of what you can financially handle. Lastly, always keep in mind the needs you have from your vehicle and make the best financial decision accordingly.


Contact our finance department if you would like to learn more about your leasing vs. financing options. You can also apply online or use our payment calculator to see about where your monthly payments will be.