Confused? You are not alone.
Many of our customers are unsure of what option to pursue
or even what each option means.
At Roy Nichols Motors, your comfort & satisfaction
is our concern. Here is a brief overview to educate
you on the differences between leasing & buying
(financing!). We hope it helps! Feel free to contact
any of our sales team for more information. click
here.
Now that you know the differences between buying and
leasing your vehicle, here's your chance to review them
side by side. Simply decide what's most important to
you.
Leasing is an option which allows you to pay for
the portion of the vehicle's value you expect to use over
a period of time, plus borrowing charge and applicable
taxes.
You should lease if
you...
want lower initial costs
- a lease down payment can be lower than a
finacial down payment.
want lower monthly costs
want to drive a more
luxurious model or get more features than if you
financed.
want to drive a new car
more often. (lease terms are often shorter than
finance terms)
want to drive a vehicle
during its most trouble-free years.
avoid trade-in
obligations
choose to walk away at
the end, or lease your next car.
Pay taxes only on your monthly payment.
You should also know about:
Up-front costs:
May include first month's payment, a refundable security
deposit, a down payment and other miscellaneous fees.
Monthly payments:
Usually lower than traditional finance payments because
you're only paying for the depreciation of the vehicle
over the lease term, along with the other charges
(i.e. monthly tax and borrowing charges).
Annual kilometrage:
24,000 km for a typical lease. You may buy more kilometres
up front or pay per kilometre over the limit at lease
end.
Lease-end options:
Explore the options we offer when your lease comes
to an end.
Option 1 - Return your vehicle
and lease a new GM vehicle.
One of the most attractive aspects of leasing
is the opportunity to drive a new vehicle every
few years. You can pre-select your new vehicle
at Roy Nichols Motors prior to the expiry of your
current SMARTLEASE. And with attractive GMAC lease
rates, you could be driving a new vehicle at a
monthly payment that 's comparable to what you're
paying today!
Option 2 - Return your vehicle
and buy a new GM vehicle.
Should you prefer to own your next vehicle, your
sales consultant can help you select a vehicle
that meets your specific transportation needs.
In addition, GMAC offers attractive purchase financing
rates to assist you in the purchase of your new
GM vehicle.
Option 3 - Return your vehicle
and not replace it.
You may simply choose to return your vehicle to
Roy Nichols Motors, hand over the keys and "walk
away" with no further obligations.*
*Provided you have met all the obligations of
your lease.
Option 4 - Buy your leased
vehicle.
You can purchase your vehicle for the "Option
to Purchase" price (plus applicable taxes
and fees, if any) detailed in your lease agreement.
Excess wear and tear:
Usually assessed at
lease end. Ask Roy Nichols Motors about our special
lease return rates. Maintenance and repairs are your
responsibility. Use our helpful guidelines to plan
for a worry-free return of your vehicle.
Insurance:
Required for the amount of coverage specified by your
lease.
Traditional financing is an option whereby
you borrow the amount you need to buy your vehicle,
then repay that amount, plus interest, with the long-term
goal of owning it.
You should buy if you...
want to own the vehicle
want the vehicle to be
registered under your name
choose to make a bigger
down payment, the less you pay each month
can trade in your current
vehicle to add to your down payment
want to keep your vehicle
as long as you wish
want no kilometrage
restrictions
want no wear and tear
limitations
may want to alter your vehicle any way you wish
You should also know about:
Up-front costs: Down payment, registration fees and other
charges.
Monthly payments: Usually higher than lease payments because
you're paying for the entire purchase price, taxes
and finance charges.
When payments end: You own your vehicle. You can choose to keep
it, sell it or trade it in.
Wear and tear: Is your responsibility. In excess, it may
lower your trade-in or resale value.
Insurance: Coverage is required for the amount specified
by your finance contract.
To change vehicles: Once fully paid for, you must sell it yourself,
or negotiate a trade-in price when buying or leasing
a new vehicle.
Annual kilometrage: Unlimited. Drive as far and as often as you
want. Keep in mind high kilometrage may affect trade-in
or resale value.