Searching for a brand new GMC car can be a daunting task, and it’s complicated often by the financial resources you may have for the purchase. But you shouldn’t let that get you down because there are options other than financing car to buy it. You can lease a car affordably and find a GMC car that fits your lifestyle. The key is to truly understand what your needs are and what resources you have available to for a car.
If you are in the market for a new car, but you’re not sure whether leasing or buying is the right way to go, then read on to get our five quick tips. Let’s get started:
Have Lower Monthly Payments with a Lease
Your monthly payments when buying a car are going to be higher than lease payments – unless you’ve put down a significant downpayment on a car you are buying. In fact, leased monthly payments are about 30 percent lower than if you were buying the car. The downside is that you won’t own the car with a lease.
This is a key factor to keep in mind as you weigh what you can afford for a car payment every month. You are not buying into the car with the lease. The dealer owns the car and only after you have turned in the car at the end of the lease can you enter a contract to buy the car.
Consider What You Have in Savings for a Downpayment
When you purchase a car, you almost always have to put down a downpayment – and usually that is about 10 percent of the car’s price. So if you are buying a $30,000 car, you should expect to hand over about $3,000 to the dealership.
Leases, on the other hand, often do not require downpayments. If they do require a downpayment, they are very low. You should talk about these options with your dealer to see what might be possible. It’s important to remember that many terms are negotiable and the dealer wants to put you into car. So don’t be afraid to bring up questions and suggest different terms — such as no downpayment, if one is required.
Always Have a New Car
One of the most attractive attributes of leasing a car is that you’ll always have a new car – always. At the end of the lease, you turn it in and get a new lease and a new car. So if you typically like to drive the latest GMC car with all the latest features, leasing may seem like the way for you to go.
In addition to always driving a new car, you don’t have to worry about any issues that are covered under the manufacturer’s warranty usually, either, because car leases typically are two to three years and those issues will be covered under the warranty. Keep in mind that there are some regular wear-and-tear issues that are not covered under your lease. For example, you may need to replace the tires or the brakes if they are used too aggressively.
Write Off Your Lease on Your Taxes
For consumers who are using their cars for work, they can write off a portion of the leased car’s depreciation on their taxes. That’s a nice buffer when you consider the alternative: You can’t write off the interest on your car loan that you took when you bought the car. The actual savings for you really is dependent on what kind of car you choose to buy vs. lease and if you are staying within all the other parameters of your leasing contract — such as not going over the mileage limit, which usually is between 12,000 and 15,000 dollars a year.
Ready for Your New Ride?
If you’re in the mood or market for a brand new car, there is much to consider. It’s expensive to own a car, more than ever, and leasing can get you a quicker, more upgraded car for less upfront costs. You’ll need to consider whether you want to build equity in a car and sell it later, which is what you do when you buy a car.
Weigh your options carefully and consider your driving lifestyle and your car needs before making the decision to buy or lease. Some of the best benefits of leasing a car are that they get you a great car – sometimes a luxury vehicle – quickly and affordably. You’ll just need to determine whether this fits into your budget in the long run because at the end of the lease, you’ll need to turn the car in before you can purchase it.