At Labadie Buick GMC, we understand that the choice between leasing and buying a new car extends beyond just your economic considerations. It's about discovering an option that matches with your lifestyle and upcoming plans. Whether you're attracted to the power of a new GMC Sierra 1500 or the luxury of a Buick Envista, our staff is committed to guiding you through all your car lease and finance options.
Do lower monthly payments pique your interest, or does your routine include long-distance travel or daily commutes? These are vital factors when pondering whether to start a GMC lease or finance a new Buick SUV in Michigan. TJ Horner, Executive Manager and Partner at Labadie Auto Co. and automotive expert, is here ready to answer some of the most common finance and lease questions.
The expert team at our Buick and GMC dealership in Bay City is always eager to explore these options with you to guarantee that your car selection outshines all your expectations.
Leasing vs. Buying a Car in Bay City, MI
Starting on the exciting path toward owning a new Buick or GMC in Michigan begins with choosing from the wide range of models that we provide at our dealership. Once you find the new GMC Yukon or Buick Envision that has caught your eye, the next step involves understanding the advantages and potential drawbacks of leasing vs. buying and deciding which financial method aligns best with your circumstances.
Our knowledgeable GMC finance department takes pleasure in enlightening you about the range of benefits each option could potentially offer. After reviewing our FAQ, we recommend making an appointment with our team to delve into crucial aspects like ownership perks, initial payments, monthly fees and mileage restrictions.
Ask an Expert: Buy vs. Lease FAQs
How do monthly payments differ between purchasing a vehicle and leasing it?
Lease payments tend to be lower than loan payments because you're paying only for the vehicle's depreciation during the lease term, plus interest charges, taxes and fees. Buying a car means that you own it outright and build equity in the vehicle with monthly payments, if you decide to finance the purchase.
Are there any tax benefits or drawbacks of leasing vs. purchasing?
Yes, there are tax benefits for both leasing and buying a new vehicle at Labadie Buick GMC. Contact our Bay City dealer or visit our local showroom to speak with a sales representative to learn more.
How do service maintenance costs differ between leasing and purchasing a vehicle?
Specifics will vary within each lease contract, but most leases will cover your leased vehicle's normal maintenance and service needs. Meanwhile, when you purchase a Buick or GMC vehicle with us, you’re responsible for the maintenance and repair costs of the vehicle. If you decide to purchase a service contract, then you will be responsible for all maintenance and routine services once the contract expires.
Are insurance premiums higher for leased vehicles compared to purchased ones?
Because most leasing companies will require you to purchase more coverage on an auto insurance policy, insuring a leased car is often more expensive than insuring a car you own outright. Please visit our local GMC dealer to learn more about your auto insurance options in Michigan.
What type of insurance coverage is required for leased vehicles and how does it differ from purchasing vehicles?
Leased vehicles typically require more comprehensive and collision coverage per the lease agreement, which can drive up the cost of coverage.
How does the depreciation of a leased vehicle compare to that of a purchased vehicle?
Leased vehicles depreciate over time just like financed vehicles. The lessor sets a future value for the vehicle, called the residual value, which is used to calculate monthly payments. The higher the residual value, the less depreciation you will pay over the lease term.
Meanwhile, when you finance a vehicle, the vehicle will depreciate the moment it drives off the lot. The value of new vehicles might decrease anywhere between 10–20% of its value in the first year of ownership.
Can I negotiate the purchase price of a leased vehicle at the end of the lease term?
The buyout price is typically set in the contract, but you may be able to negotiate the purchase price at the end of the lease term. Most leasing agreements include an estimated buyout price in the contract. If you’re interested in leasing a new GMC in Bay City, please visit our dealer.
What happens at the end of the lease term? Am I obligated to purchase the vehicle?
No, when your lease contract ends you can return the vehicle and walk away, upgrade to a new GMC or Buick lease, or, if you fell in love with your lease, you can purchase the vehicle and make it yours for good.
Michigan Car Dealers Near Me
For a more detailed understanding of whether to choose leasing or buying a GMC or Buick in Bay City, reach out to Labadie Buick GMC today. We're poised to assist you in securing an ideal Buick Enclave lease or financing a GMC Terrain that perfectly matches your lifestyle and requirements. Visit our showroom at your earliest convenience and let us help you make an informed decision.
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