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If you’re in the market for a new car, truck, or SUV, you might want to consider a lease. Leasing has explosively grown in popularity for consumers, so much that often lease programs are more financially advantageous than traditional financing. Consider current Chevy lease deals, and you’ll see offers on almost every model in the lineup. It’s no wonder since today’s buyers demand flexible financing terms and programs that work with their differing lifestyles.
Why should you consider a lease? Leasing offers a sound alternative to a loan-to-buy contract, sometimes even giving buyers more choices, such as opting for a more expensive model than they could traditionally afford. It’s one of the many reasons the time may be right to consider a lease. Not only that but manufacturers like Chevrolet are constantly releasing new lease offers that make it an attractive choice.
What happens with a lease is determined by the terms set forth by you (the lessor) and the dealership. You have the freedom to design a lease program that works for your driving style. You can dial in specifics, like mileage allowances and lease terms, to customize a solution that fits your monthly budget and keeps you driving a near-new vehicle. There’s peace-of-mind knowing that your vehicle is always protected by the factory warranty.
Maybe you’re tired of owning a car for five or more years, waiting to pay off the loan until you can trade up for something newer. If that’s you, or if you’re just curious about leasing, drop by Raceway Chevy, and our team of finance experts will share all the ins and outs, pros and cons, and everything in between. We believe in equipping our customers with options so they’ll have plenty of desirable ways to end up driving the car of their dreams.
A lease is an alternative to traditional financing. In a traditional loan, you purchase the vehicle over time, usually by putting some money down - called a down payment - and accepting a payment plan that runs for a set period of time. A typical finance contract lasts for three, four, or five years, and once you’ve made all the payments, you own the vehicle outright.
By contrast, a lease is similar to a long-term rental. You essentially ‘borrow’ the vehicle by agreeing contractually to pay for the expected loss in value that will occur during the time you are driving it. This loss in value is called depreciation, and it’s represented in a lease contract as the capitalized cost, or cap cost, minus the vehicle’s residual value.
There are three main dollar amounts that determine a lease’s terms: capitalized cost, residual value, and depreciation. Capitalized cost - known as cap cost - is the agreed-upon price of the vehicle. For example, let’s say you want to lease a $20,000 car for three years. Your cap cost is $20,000. Residual value is the amount the vehicle will be worth after the lease term ends. If you subtract the residual from the cap cost, what you have left is depreciation. That is the amount you are contractually obligated to pay.
For example, if your cap cost is $20,000 and the residual is $9,000, the depreciation will be $11,000. That’s the amount you’ll pay. You can choose a 2, 3, or even 4-year lease so that depreciation is spread over this timeframe in the form of regular monthly payments. Since it’s not a loan, you won’t pay traditional interest on the lease. Instead, the dealer will apply what’s called a money factor, which is the lease equivalent of interest. The money factor, plus any additional costs (such as sales tax, destination charges, or doc fees), are also added to the depreciation.
Leasing appeals to buyers who want to drive a newer vehicle that’s continuously covered by a factory warranty but also want to be able to upgrade their vehicle every few years. Most lease terms don’t exceed the manufacturer’s limited bumper-to-bumper warranty, so driving a leased car essentially means zero maintenance worries. Some manufacturers even included regularly scheduled maintenance as part of the lease, which means a nearly zero-cost driving experience.
The most beneficial reason to lease is that you’re essentially driving a new car. People who lease tend to roll out of one lease and right into another. They’ve made room in their monthly budgets for payment, and they select a vehicle that fits that budget and switch to a new one as the prior lease expires. This is a stress-free, easy way to keep a newer vehicle in your driveway without the hassle of arranging traditional financing.
A newer car means you’ll have access to the latest safety and technology features. You won’t be sitting in an older vehicle watching as newer cars hit the market with coveted advanced infotainment features and driver-assist safety systems. As a lessor, you’re driving a car that’s usually less than three years old, so you’re benefiting from the latest advancements from the factory. And, all that newness doesn’t mean a higher price tag. On average, lease payments are lower than traditional finance payments, a benefit that means you drive more car for your money.
Raceway Chevy has access to the latest lease deals from Chevrolet, including programs for popular vehicles like the Suburban, the Equinox, and the exciting Camaro. Our finance professionals are trained to seek out the most advantageous finance and lease programs on behalf of our customers. We understand the complexities involved with a lease, and we’ll explain them in simple terms so you can make an informed decision when it comes time to acquire your next new vehicle.
As the end of your lease approaches, we encourage you to begin inspecting the vehicle early. We will conduct a thorough inspection upon return, but you could avoid paying unnecessary fees by doing a careful inspection yourself before bringing it in for return. Begin with the exterior. Examine the body of the car, the paint, the windows, the doors. Touch up anything that looks less-than-ideal and, of course, fix any obvious repairs that need to occur. Then inspect the interior, make sure the seats are in good condition, that there is no significant damage to anything, and make sure that everything is present. Any missing items or accessories will have to be replaced either by you or by the dealership once you return the car (which you will be charged for).
This inspection is a vitally important part of the end-of-lease process, as failing to return the vehicle in the same condition you received it could cause you to incur extra fees that would exceed the cost of touch-ups and repairs. Don't spend more money in fees than you have to by getting your vehicle inspected early and repairing things at your preferred locations. We are not trying to trick you; we want to help you reach the end of your lease in the easiest and cheapest way possible, so you will have an excellent end of lease experience.
When your lease with us comes to an end, there are essentially three options: you may either return the car and begin a new lease, you may purchase the car, or you may just return the car and walk away. Perhaps one of these options automatically jumps out to you as the obviously better option, but this is actually a more multifaceted decision than it may initially seem. Purchasing may, in some cases, be more economically friendly than beginning a new lease, but it must be carefully examined and thoroughly considered because beginning a new lease has its own benefits. Simply returning the lease and walking away is the easiest option if you didn't like the vehicle you leased or don't need another vehicle after turning your lease in.
Pros of Leasing Something New:
Pros of Purchasing the Vehicle You Leased:
Like we mentioned earlier, if you choose to return your lease, you are responsible for any fees incurred due to damage or going over the mileage limits. Your pre-return inspection may help you save some money on repairs and may even allow you the option to purchase extra miles, so you don't get hit with high fees there. If these fixes and fees are too much, you may want to seriously consider purchasing the vehicle. The thing you want to examine here is the car’s residual value; if the vehicle’s residual value is lower than its trade-in value, then purchasing is likely going to be the better option. If, however, the residual value is higher than the vehicle’s trade-in value, then you may be better off entering into another lease agreement.
If you need more help working through this question, come on in, and we will help you work through it. These are not easy questions, and we want to help you through any difficulties or confusion you may be having. We can also get the process started by either scheduling or conducting your inspection or by helping you pick out your next model to lease.
One of the exciting things about leasing is that it may allow you to obtain a vehicle that you wouldn’t be able to afford if you were purchasing. With this in mind, let’s aim high with our lease options.
The Chevy Corvette is one of the most renowned sports cars on the market. Because of this, it is one of the highest MSRPs in the lineup and would require a hefty down payment. Maybe you’ve always wanted one but have always assumed that it is too expensive and would never be a reality for you. By leasing a Corvette, however, you would be able to be behind the wheel and have it in your own garage in a much more economically savvy fashion. Its high-performance quality and innovative style make it difficult to turn down, and with reasonable lease options, it may become a reality for you.
Chevy pickups are some of the best on the market, and they don’t come any better than the Silverado HD. These trucks usually come with a pretty high price tag, though. The Colorado is a cheaper option, and while it is a fantastic vehicle, there may be some features of the Silverado HD that you desire, such as the larger size, the increased off-roading and towing capabilities and technologies, and the overall bolder stance. By leasing, you would have access to all of these features without having to find the money right now; and if you find it somewhere during the time of your lease deal, it could be yours if you choose to purchase at the end.
The Chevy Suburban is the staple vehicle in many American homes. We think that this is a good car for which to consider a lease because it is a family-oriented vehicle that will suit you and your family very nicely with its epic amount of passenger and cargo space, top-notch safety features, and durable construction. By leasing, you will be able to channel your money towards your family rather than towards a vehicle down payment. Put both the car and the money towards your family and don’t worry about buying right now.
Electric vehicles are increasing in popularity right now, and for a good reason. Aside from being more eco-friendly than traditional vehicles, they also tend to be some of the most stylish cars on the market. As electric vehicles settle into the market and become more mainstream, however, they tend to be on the higher end of the price scale while they are still a novelty. Aside from their price, an electric vehicle will provide you with a different driving experience than a traditional vehicle, so it may be something you want to test out in a lease before making an official purchase.
The Spark is a fantastic vehicle for a first-time car buyer; it is stylish (especially with its fun color options), compact, and affordable. Its relatively low starting MSRP is also a reason why it makes a great lease option because your monthly payments will be low with this car. The Spark is the perfect car for single commuters or people who are getting their first vehicle due to its compact size, easy handling, and fun and spunky aesthetic.
Raceway Chevrolet is committed to providing a stress and hassle-free car-leasing experience for every one of our customers. Our financing team will take all the time you need to answer your questions about how leasing works, what vehicles you can lease, and what lease deals we are currently offering, so you can get the best deal possible. We are leasing experts. Our team of highly-trained finance professionals knows how to sift through many different lease programs to determine the one that fits your specific budget, credit score, and personal preferences.
We never take a one-size-fits-all approach. Instead, we take time to get to know you and to understand what you are hoping to get out of a lease. We’ll listen to your concerns and work with you to uncover the best possible plan. Leasing doesn’t have to be confusing. In fact, it’s a simple transaction when you have a team that can help you sort through everything quickly. We can put together a flexible lease program that takes into consideration your intended mileage, lease term, and monthly payment range.
Thousands are discovering the flexibility that leasing allows, including lower monthly payments and more car for the money. At Raceway Chevrolet, we believe our customers come first. Give us a call today or, better yet, visit our beautiful showroom, located at 1124 Hellertown Road in Bethlehem. You can also visit us online anytime and view our inventory, as well as browse all our current lease deals. We can’t wait to help you lease your new car!
