Leasing vs Financing

Since 1967, families throughout Southfield, Detroit, Farmington Hills, Birmingham and surrounding communities have trusted Matick Buick GMC for all their leasing and financing needs. For close to 60 years, our family has focused on a simple approach where every customer is treated like family and every member of our team does everything possible to help our customers drive away in the Buick SUV or GMC truck or vehicle they've always dreamed of.

As a customer-centric dealership, our focus is to ensure you have as many options when looking to lease or finance a new Buick or GMC-Certified Pre-Owned truck or vehicle. That means ensuring all customers understand exactly what's involved when financing or leasing a vehicle. While both involve making monthly payments, the structure of the payments and how they go towards the vehicle are different. Here is a breakdown of both financing and leasing so you can make an informed decision.

What Does It Mean to Finance a Vehicle?

When someone says they are financing a vehicle, they are essentially financing the purchase of that vehicle. To do that, they must take out a loan which can be provided by a bank, credit union, our dealership, or other financial institution. At Matick Buick GMC, we work with multiple lenders and have established a strong local network with multiple financial institutions. We also offer leasing through GM Financial, which is GM's captive finance company.

When you finance the purchase of a vehicle, you can use a down payment to reduce the amount of your monthly payment. A down payment reduces the amount of your loan and often results in a better interest rate, provided you have a good credit rating. We offer an online credit application and pre-approval process to make financing your next Buick or GMC a breeze.

• Financing involves taking out a loan to buy your Buick or GMC.
• The loan can be provided by a local bank, credit union or other financial institution.
• Matick Buick GMC can also provide financing through GM Financial.
• A down payment reduces the amount of your loan.
• This can help you secure a lower interest rate on the loan.
• It will also reduce the amount of your monthly payments.

What Are the Benefits of Financing?

With financing, you're making monthly payments until you eventually own your Buick or GMC vehicle. Each payment you make brings you one step closer to owning your vehicle outright. Once all the monthly payments have been made, the vehicle becomes yours. When you finance a vehicle, that vehicle retains value. If you later decide to trade-in that vehicle to get another car, you'll be able to use the equity within the vehicle as a down payment towards the new Buick or GMC truck you want.

With financing, you have more freedom to sell, trade or even customize the vehicle as you see fit. You are essentially buying that vehicle outright and can easily track when you'll finish payments.

• With each monthly payment, you're one step closer to ownership.
• You can trade-in that vehicle for a new one.
• You have greater flexibility.
• You can sell the vehicle and pay off the remaining owed on your loan.
• You can use trade-in value as a down payment on a new vehicle.
• You can customize the vehicle.

What Does It Mean to Lease a Vehicle?

Leasing is different than financing in that when you lease a vehicle, you are effectively paying to use the vehicle for an agreed-upon time. Leasing is typically arranged through GM Financial through our dealership. With leasing, you agree to a term for the lease. Monthly payments are determined at signing. Because you are paying to use the vehicle, our dealership will provide you with an annual mileage allowance. This allowance states how much you are allowed to drive the car as exceeding this annual mileage can involve extra charges.

At the end of the lease, the vehicle is often returned. However, if the lease agreement has a purchase option, then you could purchase the vehicle at the end of the lease.

• With leasing, you are paying to use the vehicle.
• Leasing is typically handled through our dealership and GM Financial.
• Vehicle returned at end of lease.
• Options could include purchasing the vehicle at the end of the lease.

What Are the Benefits of Leasing?

The benefits of leasing typically include a lower monthly payment and a lower down payment. It also makes it much easier to move into a new Buick or GMC truck every couple of years so that you are always driving the latest and greatest model. With leasing, you're always at the forefront of vehicle technology. Upgrading to a new vehicle every three or four years ensures you have the best that Buick and GMC have to offer. This makes leasing beneficial for Matick Buick GMC customers who are not interested in long-term ownership.

• Possibility of lower monthly payments.
• Possibility of lower down payment.
• Easier to upgrade into a new model Buick or GMC Truck or SUV.
• Ensures you are always at the forefront of vehicle technology.

If you are interested in leasing or financing a new Buick or GMC or have questions, contact us now.