The Basics and Benefits of Leasing in Carlyle, IL

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If you’re in the market for a new vehicle, a lease might be the right solution for your needs and your finances! Here’s a closer look at the basics and benefits of leasing a car, SUV, or truck here at K&J Chevrolet in Carlyle, Illinois.

The Basics Of Leasing

Not sure how leasing a Chevrolet Equinox or Chevrolet Silverado is different from buying one? Keep reading to learn more about how a lease works.

What is leasing?

When you lease a vehicle, you’re paying to drive it for a set period of time instead of paying to own it. It’s quite similar to a long-term rental. You’ll still make a monthly payment like you would if you were making a purchase, but at the end of the lease period, you’ll return the vehicle to the dealership and be released from any financial obligations.

How long does a lease last?

Vehicle lease terms are typically set for 24, 36, or 48 months, with the specific length depending on your needs and credit. In some cases, shorter and longer lease terms are available as well.

What are the key elements and terms of a lease?

Several factors combine to determine the amount of your monthly lease payment. You’ll pay a variety of fees and interest charges, but most of what you pay will go toward depreciation — the difference between the vehicle’s current value and its residual value (how much it will be worth at the end of the lease). Also factored in: your down payment, trade-in value, and any dealer rebate you qualify for.

The lease contract will also include elements like the length of the lease, maintenance requirements, criteria for excessive wear and tear, the number of miles you’re allowed to drive each year (plus the fee you’ll incur for exceeding this limit), and the fee you’ll have to pay if you want to end the lease early.

What do I need for a lease?

To lease a vehicle, you’ll need a valid driver’s license and proof of insurance. You’ll also need to provide financial information like proof of income. In addition, it’s a good idea to be aware of your credit score before looking into a lease — the better your credit, the more likely you are to qualify for favorable lease terms.

What happens when the lease ends?

Once your lease is up, you have three choices. First, you could return the vehicle to K&J Chevrolet and exchange it for a new lease. Second, you could return the vehicle and go somewhere else for your next vehicle. Third, you could purchase the vehicle outright — a predetermined buyout price is typically a part of the lease contract.

The Benefits Of Leasing

Is leasing right for you? Here are five of the biggest benefits you’ll experience when you lease a Traverse or Trax at K&J Chevrolet.

Lower payments

Your monthly payment for a lease will typically be less than it would be if you were purchasing the same vehicle. Down payment requirements and up-front costs are usually lower as well.

Maintenance is covered

The cost of scheduled maintenance and unscheduled repairs is generally covered as part of your leasing agreement, helping you save money over the life of the lease. Plus, because leasing periods only last a few years, you’ll be fully covered by the warranty the entire time.

No depreciation

Although you’ll pay a predetermined amount for the vehicle’s decrease in value over the period of the lease, depreciation will never hurt you financially. Unlike with a vehicle purchase, you can’t end up in a situation where you owe more on the vehicle than what it’s worth.

Fewer hassles

A lease is quite convenient — when the term is up, it’s a seamless process to turn your old vehicle in and switch to a new one. You won’t have to worry about trying to sell your current vehicle or get the best trade-in value.

Always drive the most up-to-date model

If you enjoy driving the latest models and having the latest technologies at your fingertips, leasing is the way to go. It’s a much more financially advantageous approach than buying a new vehicle every few years.

Ready to take the next step and lease a new vehicle? Chat with the experts at K&J Chevrolet. We’ll treat you The K&J Way — which means you can look forward to great customer perks, transparent financing, outstanding service, and so much more!