Which Auto Financing Option Is Right For You?

Which Auto Financing Option Is Right For You?

When it comes to auto financing, you have options. But how do you choose which is best for you? We’re answering your top questions to help guide your decision.

What is the difference between leasing and financing?

• Leasing: When you lease a new vehicle, you pay to drive it for a portion of its life.
• Financing: Once you pay off your retail contract, you own the vehicle outright.

What are some benefits of each auto financing option?

• Leasing: Experience “new” more often with the latest technology, styling and performance enhancements.
• Financing: Customize your vehicle and drive without mileage limitations. Own the vehicle at the end of your contract.

What are the term lengths for leasing and buying?

• Leasing: Terms are typically 24-36 months.
• Financing: Terms go up to 84 months.

Tip: Need help deciding what term length is best for you? Read our article on the pros and cons of long-term auto financing to weigh your options.

What will my payment look like if I lease versus if I finance?

• Leasing: This commitment typically requires a down payment, with lower monthly payments.
• Financing: A retail contract may not require a down payment and usually has higher monthly payments.

What are my end-of-term options?

• Leasing: You can purchase the vehicle for the purchase option amount in your contract, return it, or lease or finance a new vehicle.
• Financing: You’ll own the vehicle outright at the end of your contract period. You can sell it or trade it in after completing your payments.

Where can I learn more about auto financing?

Auto financing doesn’t have to be complicated, and there are lots of resources to help you learn more. You can even apply to prequalify online before you test drive your next vehicle. Visit our current offers page to see deals on the latest GM vehicles.