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Lease & Purchase Options
• Lease Advantage #1 Little or no down payment is required and no up-front sales tax payment (in most states).
• Lease Advantage #2Leasing is a low-cost way of driving a Buick, Pontiac, Cadillac, GMC, or Hummer. You only pay for the portion of the vehicle you use. And leasing may offer tax advantages if the vehicle is for business purposes (please consult your tax advisor).
• Lease Advantage #3A lower payment means more disposable income for other investments.
• Lease Advantage #4You can tailor your lease to fit your driving habits.
• Lease Advantage #5Leasing means there is no hassle with trading-in or selling your vehicle. We take the risk of the resale value at the end of the lease and provide you with a set purchase option.
• Lease Advantage #6Leasing is a financing option that lets you pay for the portion of a vehicle you expect to use over a specified term, plus a rent charge, taxes and fees. For example: you might want a $40,000 vehicle. And that vehicle might be worth about $22,000 at the end of your lease (residual value).
If you purchase the vehicle using traditional financing, your monthly payments will be based on the entire $40,000 value of the vehicle, plus a finance charge, and you will own the vehicle at the end of your financing term.
However, if you lease the same vehicle, your monthly payments will be based on the amount of the vehicle you expect to "use up" over the lease term, plus a rent charge, taxes and fees. This value ($18,000 in our example) is the difference between the original cost ($40,000) and the estimated value at lease end ($22,000).
With leasing, you can get affordable monthly payments, a new vehicle more often, more vehicle for the money, and no resale or trade-in hassles. Keep in mind, with leasing you do not own the vehicle, you return it to your dealer at lease end unless you choose to exercise the purchase option as defined in your lease agreement.
Purchase Options
How do you know if traditional financing is right for you?
Generally, if you plan to drive your vehicle for more than just a few years, you consistently drive well over 15,000 miles per year, you subject your vehicles to rough treatment, you plan to alter the vehicle's appearance, or you feel more comfortable with the idea of owning a vehicle, traditional financing is probably a better option for you.
Traditional financing is an installment sale transaction between you and your dealer whereby you agree to pay the amount financed, plus an agreed upon finance charge, over a period of time.
Many consumers prefer traditional financing. It's always been a popular way to purchase the GM vehicle of your choice. Buying your GM car, truck or van this way provides:
Complete ownership
The vehicle is titled in your name.
No restraints on mileage or wear
Since the vehicle is yours, there are no restraints on how many miles you accumulate and no provisions regarding the vehicle's operating condition or maintenance. However, keep in mind, improper maintenance may affect your warranty coverage and a vehicle's condition can affect resale or trade-in value.
A vehicle that's yours to sell or trade in at any time for another GM vehicle
It's your vehicle. Anytime you want to pay off your contract and sell or trade in your vehicle on another GM car, truck or van, you can.
University Sales and Service is pleased to offer competitive traditional financing through our many lending insitutions. For more information click on the application link below. |
