What to Know Before Leasing a Vehicle

We rely on cars to move us through life; they take us to work, on vacations, or around town to run errands. You may also need a vehicle for work to deliver packages, take tools to the job site, and complete other tasks. Whether you're shopping for your first car or suddenly need a replacement, you need a vehicle to keep you mobile. When car shopping, most people plan on taking out a loan, even if they can afford to pay cash. In this article, we'll explore those reasons and discuss the pros and cons of getting a car loan. Car Loans Explained A car loan is when lenders give you money to buy a car, truck, or SUV, and you agree to pay them back. Before you take on a car loan, you should know your responsibilities and understand some basic terms. Interest Rate When you accept a loan from a lender, you are agreeing to pay them back with interest. Interest represents the bank's profit for extending the money upfront and arranging to take a portion back each month until you repay the loan. Lenders also use interest rates to offset the risk of lending money and not receiving full repayment. The higher the interest rate, the more money you will pay over the life of the loan. Your interest rate varies depending on your creditworthiness. Credit bureaus use a complex algorithm to assign you a credit score, which tells lenders how likely you are to repay the loan. Buyers with higher credit scores will get lower interest rates, which saves you money over the life of the loan. Loan Term The loan term represents the time you have to repay the loan. Auto loan terms vary. Typically, they range from three to seven years. Lenders don't negotiate interest rates but offer various loan lengths. You can then choose which term works best. Longer loans have lower monthly payments. As a result, many buyers look to extend the length of their loans to save money each month. You will pay more in interest over the life of a longer loan than shorter-term loans. Do I Need a Car Loan? The answer to this question depends on your situation. Not everyone has the cash in hand to purchase a vehicle, and even those that do sometimes opt for a car loan. If you don't have the money in your bank account, you will need to get a loan if you want a vehicle. We suggest getting preapproved online before you begin shopping. If you have the money to cover the cost of a car, you don't need a car loan. You can pay for the vehicle, and it's yours the moment you drive off the lot. Paying in cash will save thousands of dollars in interest payments and fees over the life of a car loan. Feel free to buy your car with cash if you can afford it. However, experts don't recommend depleting your savings for significant purchases unless necessary. If something were to happen and you needed cash quickly, having that money set aside will help. Car Loan Pros You will enjoy several benefits if you choose to finance your vehicle. First, you won't pay as much, if anything, upfront. Typical car loans require some form of downpayment. However, you can trade in your old vehicle and use its value as a downpayment. In this scenario, you won't have any upfront costs. If you don't have much money saved up, financing can allow you to purchase a more expensive car. For example, if you have $10,000 in your savings account, you can only afford a car under $10,000 without a loan. Remember, you must account for taxes, fees, insurance, and registration expenses. Financing expands your options. For example, if you finance $15,000, you could apply a $5,000 downpayment on a car worth twice that and still have $5,000 left in your nest egg. At a 5% interest rate and a 60-month loan term, you would pay around $283 each month. Getting a car loan builds equity, which is another excellent benefit. Once you pay off the loan, you own the car. You can continue driving it and enjoy no monthly payments or trade in your vehicle for a newer model, using its value as a down payment. You can also sell the car and use that cash for other things. If you pay your loan on time, you also build good credit. Building good credit through a car loan can help you with subsequent loans. The higher your credit score, the lower your interest rate. Car Loan Cons When you drive a new car off the lot, it depreciates quickly. Most new models see up to a 30% drop in value in the first year and 10%-15% for each of the next three to four years. This rapid depreciation can lead to owners getting upside down on their car loans. Upside down refers to owing more for your car than its actual value. Getting upside down won't automatically affect you negatively. However, you could owe money that insurance won't cover if you get in an accident. For instance, if you owe $20,000 on your car loan and its actual value is $15,000, if you get in an accident and the insurance company deems the vehicle a total loss, they only pay your lender $15,000. You would have to pay the remaining $5,000 to satisfy the loan. This expense comes at the worst possible time, as you probably need whatever money you have to put down on another vehicle. Let Our Finance Center Experts Help At Meadowland GMC, we can help you navigate the car loan process. Our finance managers have decades of experience finding the perfect loans for buyers in all credit categories. Our network of lenders lets us shop for loans for you, saving you time while finding you the best deal. Getting a car loan will have you driving away in your dream vehicle. You can use our online payment calculator to get an idea of the type of deal you want. Then, visit our Route 6 dealership in Carmel, and speak with a financial pro. Photo Credit: Car Loan by Got Credit is licensed with CC BY 2.0 DEED

Our dealership financing team is a group of dedicated individuals who work hard to help you get the very best financing options for your vehicle. They’ll design your lease or sale contract, help you with the paperwork, explain your options, and arrange to finance. Our financing team takes care of everything so you can focus on what's important — choosing the right vehicle for you and your family at the right price. Read on to learn how our financing team will work for you, including qualifying for new car financing, securing auto loans, and arranging a vehicle lease. Leasing a Vehicle Leasing a vehicle is very similar to renting or borrowing one. During the lease period, you make payments that apply toward the depreciation of the vehicle's value. Because of this, you typically pay less per month to lease a car than to buy a new one. At the end of your lease period, you can purchase the vehicle if you love it or turn it in if you’re ready for something new. Leasing is a good option for many people. Suppose you’d like to have lower monthly payments than buying a car or always prefer to drive a vehicle under warranty. In that case, leasing might be the right choice for you. Leasing will also allow you to get a new car every couple of years with the latest technology and safety features. Because you need to keep the vehicle in good condition, leasing is often a good option for people who are happy to keep up with vehicle cleaning and maintenance. Our dealership financing team can sit with you and explain your lease options and terms. Once you're comfortable with the terms of your lease, we’ll go through the paperwork with you so you can get on the road as quickly as possible. Purchasing a Vehicle If leasing isn't right for you and you're ready to buy a new or used car, our dealership financing team can help you there too. We can help you with every step, from pre-qualifying for a loan to understanding your terms and signing the paperwork. Get Pre-qualified or Pre-approved for a Car Loan We’re happy to help you with pre-qualifying or pre-approval for your car loan. You can start this no-obligation process anytime, even before deciding what car you want. Knowing your budget ahead of time might help you choose which vehicles to look at. To get pre-qualified, you start with a quick application and a credit check that does not affect your credit score. We'll let you know what you may qualify for, including the total amount and interest rate. The pre-approval process is similar. However, the pre-approval application will reflect on your credit score, so it might be better to wait until you've decided on which vehicle you want to buy. We work hard to get the best rates for you and try to make the process as smooth as possible to help you enjoy buying your car. We’ll explain all of the details and answer any questions so you can make an informed decision. Other Ways Our Financing Team Can Help You While arranging vehicle leases and auto loans is a big part of our team's job, there is much more we can do for you. We can: Get You Great Interest Rates We want to see you drive off happy and do everything we can to get you the best lease or loan terms. You can apply with our dealership financing team even if you’ve already applied through other financers to compare your options. Our team will work with lenders to secure you great rates. We’ll also let you know about any promotional offers available. Offer Low Credit Assistance We understand that everyone starts the car-buying journey from a different place. Whether you have excellent credit or not, we can help you apply for an auto loan. Feel free to talk to our team about your circumstances, and we'll happily work with you. Assist With Applications and Contracts Securing financing to lease or buy a vehicle can feel daunting. Applying for financing with us should only take a few minutes. If you have questions, don't hesitate to contact us for assistance completing the application. When you're ready to secure a lease or loan, we’ll explain your options. We’ll also work with you on all necessary paperwork, explaining everything along the way, so you can sign confidently. Explain Your Options We can explain any optional policies you want to add to your purchase. We'll let you know about the benefits and terms of special offers for your new or pre-owned GMC. As always, we're happy to answer any questions so you can decide whether any optional benefits are right for you. Provide Convenience and Service One of the main reasons to arrange financing through our dealership team is our commitment to offering you efficient, top-quality service. If you finance with our team, you can enjoy a one-stop shop where we handle as much as possible to make the experience run smoothly. You can go from browsing our inventory to a test drive to driving home on a single trip. Our dealership financing team comprises compassionate professionals who know their stuff and work daily to support our customers. We want your leasing experience or buying from Meadowland GMC to be great. We’re always happy to answer your questions and encourage you to take as much time as you need. Everyone here is ready to help you lease or buy a new or used GMC to hit the road in the Meadowland area. If you're interested in any of our vehicles, we offer an online payment calculator, so you can think about your budget ahead of time. Or, if you prefer, contact us or stop by to talk to our dealership financing team. Photo Credit: Close-up of Human Hand by Pixabay is licensed with Pexels License

Everyone likes to save money, especially on large purchases like buying a new car. It's getting harder to haggle with dealers to get the price tag of a vehicle you've been eyeing down to something in your price range. Luckily, you can sometimes come across deals that can get you a discount on the vehicle you want. The GM Supplier Discount program can save qualifying buyers a lot of money. Let's find out the GM Supplier Discount, who can use it, and how the program works. GM OWNERS SEARCH NEW INVENTORY What Is the GM Supplier Discount? Through the GM Supplier Discount, qualified participants can purchase or lease brand-new vehicles from dealerships offering a discount program for less than the sticker price. Participants must be from the United States. It’s important to read through the terms and conditions of the program to fully understand what you agree to by taking advantage of the discount. Using the GM Supplier Discount, you can save quite a bit off the MSRP of the vehicle you want to drive. It's a deal worth pursuing if you qualify. Of course, some restrictions come with the program that we'll discuss later. But if you want to save more on a vehicle purchase, the GM Supplier Discount could be for you. Do I Qualify for the GM Supplier Discount? The GM Supplier Discount is available to eligible participants, which GM defines as: Active employees of eligible GM supplier companies residing in the United States. Active employees of eligible GM fleet and commercial companies residing in the United States. Any salaried employee working full- or part-time in an eligible GM company can use the discount program to get a better deal on a new Chevrolet, GMC, or other outstanding GM vehicle. GM excludes contract employees from participating in the program, however. GM does allow you to share your discount with one friend or family member each time you purchase a vehicle using the program. Remember that you only have one year from the date of your purchase to pass on your GM Supplier Discount, so help someone else take advantage of the extra savings sooner rather than later. They'll appreciate it. How Is the GM Supplier Discount Calculated? Because the GM Supplier Discount is meant to make it easier for you, the consumer, to purchase a vehicle at a great price, it's easy to understand. Here's the formula for how the discount is calculated: Dealer invoice price with applicable options + destination charge + $200 program fee To work out your GM Supplier Discount, plug in the numbers and make some easy additions. Once you've calculated the number from the equation above, you can subtract the MSRP from the total to find exactly what you’ll save through the GM Supplier Discount. You can often save a thousand dollars or more, depending on the make and model of the vehicle. You can usually combine the discount with other offers, so check with the dealer to find out whether any other savings apply to your purchase. You may leave the deal with more left in your bank account than anticipated. Whether leasing or buying, you can use the GM Supplier Discount once every six months. This means you can continue to drive the latest model or change up the car you regularly drive for less. Which Cars Qualify for the GM Supplier Discount? You might be wondering which cars qualify for the GM Supplier Discount. Don't worry; almost every brand-new vehicle from Chevrolet, Buick, GMC, and Cadillac is eligible. There may be some exclusions, and GM can change the vehicles included in the GM Supplier Discount program at any time. You may even find previous model years on the eligibility list, often discounted already. With new year models on their way to dealerships soon, this could be the perfect time to treat yourself to the ride you deserve. To give you an idea of some of the savings you can expect, here are some discounts you might see right now: 2022 GMC Yukon Denali: $3,710. 2022 GMC Sierra 1500: $3,712. 2022 XT5 Cadillac Luxury: $3,308. 2022 XT6 Cadillac Premium: $3,843. 2022 Chevrolet Blazer RS: $2,874 2022 Chevrolet Silverado 1500: $3,536. 2022 Buick Envision Avenir: $1,649. With discounts like these, you can afford to drive a luxury vehicle. We can't list all the savings for all the vehicles you could use the GM Supplier Discount to buy, but our team will gladly help you determine whether the vehicle you're interested in is eligible. Then, we can guide you on how to get your authorization number to use the discount and the rest of the process of buying or leasing a new vehicle. Additional Information About the GM Supplier Discount You may want to know more about the GM Supplier Discount if you qualify to participate. Bear the following in mind: You can use the discount to purchase two vehicles per year. Not all GM dealers participate in the program, as it’s available to all, but voluntarily. You can use the discount on a vehicle you order through the dealership. There are no restrictions to apply for financing, so you can use any bank or lender you want. GM can cancel or modify the program at any time and at its discretion. If you have more questions about the GM Supplier Discount or want to determine whether you qualify, contact the team at Meadowland GMC. We'll take the time to help you understand how the program works. You can find which qualifying vehicles we have in stock or preorder your 2023 model now and use the discount to your advantage. Photo Credit: Image used with permission via GMC.com