Whether you're financing or leasing your new Chevy, it's important to feel comfortable with the process. There's a lot of paperwork, and the terms might be wholly new to you. We want to make that easy on you. At McGrath Chevrolet of Dubuque, our friendly finance department does everything we can to take the stress out of car buying, and part of that is being informed. Buying a new Chevy, shopping for a used car, or deciding what to do at the end of your lease? We're here to help. Our finance team will break down gap insurance, auto loan rates, whether or not you need good credit to buy a car, and much more. If you don't see your answer here, don't hesitate to reach out.
Financing
Thinking about financing your new car? We've got two options for you: direct lending and dealership financing.
With direct lending, it simply means that you setup your loan with a lender of your choice. You contact the lender and give them all of the details, such as selling price, trade value, cash down, etc. You can do this through a bank, finance company, or credit union.
Now, let's talk about dealership financing. It's like a one-stop-shop:
Choices galore: Dealerships work with various banks, offering you a range of financing options. Be sure to explore all your choices. Generally, there are 25-35 different lenders that our dealerships use, and that will be a mix of local banks and credit unions as well as large national banks such as Ally or Wells Fargo.
Exclusive perks: Dealerships might have special low-rate programs depending on the vehicle you buy. New vehicles will often have low APR offers that are offered to incentivize you to buy a vehicle from their brand. In our case, it is the best brand available, Chevrolet! In some cases there are low-interest rates offered for Certified vehicles as well as select late-model used vehicles that are generally 1-3 years old.
Before you commit, be a smart shopper:
Remember, a payment is a math calculation: Every number in the equation matters, and each change or variation to the number will impact the final payment. If you have a trade-in and you still owe money on that vehicle, the payoff amount will impact the payment on your next vehicle. Other important values will come from: Vehicle purchase price, trade value, cash down, term of loan, local taxes and fees, and of course, interest rate on the new loan.
Leasing
When you decide to lease a car, you're basically getting the green light to cruise around in it for an agreed-upon time and mileage. The common advantages of leasing a vehicle are lower monthly payments and not having to deal with depreciation. As much as we don't like it, vehicles depreciate. If you do a long-term loan such as 84 months, and/or do not put cash down, your vehicle will depreciate at a faster rate than you are paying it off, and then you will end up owing more than it is worth if you try to trade it in within 2-3 years. Leasing prevents that.
ÂMany people will say, "But when I lease, I never own it,"Â which is true. However, most people who finance a vehicle never own it either because they trade or sell it before it is paid off and the title is given to them.
The cool thing about leasing is that those monthly payments are usually friendlier on your wallet compared to if you bought the same car.
Now, let's figure out if leasing fits your needs.
Take a moment to consider how much you drive. Most leases come with an annual mileage of 12,000. But if you're eyeing a higher limit, just know it might bump up your monthly payment. Lease companies will offer leases with as low as 7,500 miles per year, and they also will calculate a lease up to higher amounts, such as 18,000 miles per year if needed. Every leasing company is different though, but we can help to determine what is best if you have questions.
 ÂAlso, keep in mind the lease terms. You're the one in charge of excess wear, dents, or scrapes on the car and making sure no equipment goes missing. The general rule of thumb when turning in a lease is that it can look used, it can have a small blemish here and there.  They do not need to be in pristine condition.  Plus, you'll need to treat the car to some regular check-ups per the manufacturer's recommendations and keep insurance that meets the leasing company's standards, as you should with any vehicle.
ÂIf you lease a vehicle and decide that you want something different, you can trade it in. The process is somewhat similar to trading in a vehicle with a loan on it. We call the lease company and ask what the early termination fee or lease buyout amount is, and from there, it is treated the same as if you have a loan on it.
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