Understanding the Car Leasing Process
Leasing a new car is an alternative to buying that allows drivers to enjoy a brand-new GMC vehicle without committing to long-term ownership. For GMC enthusiasts around Wentzville, Troy or St. Louis who want the joy of ‘trying’ multiple Buick or GMC vehicles, leasing might be the perfect option! The lease process begins with selecting a car and negotiating lease terms, which typically include the lease duration, monthly payments, mileage limits, and any upfront costs. Once the lease agreement is signed, the lessee makes monthly payments for the duration of the lease, usually 24 to 48 months. At the end of the lease term, the car is returned to the dealership, and the lessee may have the option to lease a new vehicle, purchase the leased car at a predetermined price, or simply walk away.
Benefits of Leasing
Lower Monthly Payments: Since lease payments cover only the vehicle’s depreciation during the lease period (rather than the entire purchase price), they are typically lower than loan payments.
Access to Newer Models: Leasing allows drivers to upgrade to the latest models every few years, benefiting from updated technology, safety features, and fuel efficiency. Lower Repair Costs: Most leased vehicles remain under the manufacturer’s warranty, meaning major repairs are usually covered.
No Long-Term Commitment: At the end of the lease, the lessee can switch to a new vehicle without the hassle of selling or trading in.
Key Terms of Leasing
Lease Term: Most leases last between 24 to 48 months, with shorter terms offering more flexibility and longer terms providing lower monthly payments.
Mileage Limits: Standard lease agreements typically allow between 10,000 to 15,000 miles per year. Exceeding the limit results in additional per-mile charges, usually ranging from $0.10 to $0.25 per mile.
Residual Value: This is the car’s estimated value at the end of the lease. A higher residual value means lower depreciation and potentially lower lease payments.
Money Factor: This is the equivalent of an interest rate in leasing and affects monthly payments. A lower money factor translates to a more affordable lease.
Special Lease Rates and Incentives
OEMs and dealerships often offer special leasing deals that make leasing even more attractive when the OEM wants to hit specific sales goals. These may include money incentives, OEM incentives, zero-down offers or special rebates. If you’re looking for a new GMC vehicle, consider browsing our specials page online to find a vehicle that suits you and, chances are, we can make you a better deal! Contact our team at O’Fallon Buick GMC today. We can’t wait to meet you and make your driving dreams a reality.