Lease at Hart

BUYING VS. LEASING

LEASING

Leasing offers affordable payments with shorter terms. This enables you to:

  • Most leased vehicles are under warranty for the term of the lease.
  • Consider models with more options.
  • Get behind the wheel of a brand-new car!

Options at the end of your Lease:

You have the options if vehicle is worth more than the residual to:

  • Choose to purchase the vehicle and keep it.
  • Choose to purchase the vehicle and sell it.
  • Apply to the equity in your next vehicle.

If your vehicle is worth less than the residual you can:

  • Drop off the keys and walk away.

Benefits

  • Shorter terms with affordable payments.
  • Almost all leases are written within the factory warranty period. This helps you avoid costly repair bills.
  • Avoid negative equity.

BUYING

Conventional loans often require longer terms to reach affordable payments

This keeps you

  • Driving the same vehicle longer.
  • From trading into a new vehicle sooner.

Conventional loans also come with obligations when you trade you might have to:

  • Pay the total cost of using the vehicle, regardless of the value (known as being “upside down”).
  • Assume entire risk of unexpected depreciation.

COMMON LEASING QUESTIONS

1. What is leasing?

Leasing is a financial option that allows the consumer to pay for their use of the vehicle, rather than the entire vehicle. Payments are based and estimated upon the depreciation of the vehicle during the term of the lease, and this can include borrowing costs. However, these are typically lower than those associated with a vehicle purchase loan.

Keywords to know:

Money Factor: This is the interest rate of a lease contract. This is equivalent to the interest rate of a finance loan. (Also known as Lease Factor).

Residual Value: This is the guaranteed value of the vehicle when the lease is terminated. This is used to calculate the monthly payment of a lease.

Security Deposit: Some leases require this deposit up front. This fee is typically the amount of a monthly payment. The security deposit is refunded at lease end, less any wear or mileage charges apply.

2. How many miles per year can I drive?

Leases have an annual mileage limit since a vehicle’s mileage affects its resale value. Although, there are various annual mileage limits along with the option to purchase additional miles. This allows leases to be created to suite any driving needs.

3. Do I need good credit to lease a vehicle?

A good credit history will help, but it’s ultimately up to the banks and GM Financial to determine if a lease is available to the individual or individuals involved. The better your credit score, the better the leasing terms and conditions will be.

Hart Motors GMC

1341 East Main Street
Salem, VA 24153
Driving Directions
Sales 540-401-8293
Service 540-444-4444
Parts 540-444-4444

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