What Is Traditional Vehicle Financing?

When you finance, you’re taking out a loan to purchase the vehicle outright. You’ll make monthly payments until the loan is fully paid, and once it is, the truck is yours. Financing is a smart option for Williamstown drivers who want long-term ownership and plan to keep their Silverado for years to come.

Pros of Financing:

• No mileage limits
• Total ownership at the end of the term
• Freedom to customize
• Option to sell or trade in

Cons of Financing:

• Higher monthly payments
• Full responsibility for maintenance and repairs after the warranty

What is Capitalized Cost?

This is the ultimate price of the car. This price is normally fixed, but you can still negotiate it downward with many dealerships. A lower cap cost means you will be paying lower monthly installments. You can also get cap cost reductions, which are special lease deals from automakers.

What is Residual Value?

The residual value—also called salvage value—is the predicted value of what a car is worth at the end of the lease agreement. It is essentially the estimated value of a car at the end of its lease term or useful life. Typically, this value is used to understand the number of monthly payments the lessee will make during the life of the lease period.

What is a Lease?

A Chevy Silverado lease deal gives you the chance to enjoy a new truck every few years, without the long-term commitment. You’ll make lower monthly payments for a set term, then return the vehicle or choose a new model.

Pros of Leasing:

• Lower upfront and monthly costs
• Always drive a newer model
• Fewer repair worries

Cons of Leasing:

• Mileage restrictions
• No customization
• Potential fees for early lease termination

What Are Some Finance Advantages?

You Own the Car

Once your vehicle is paid off, you will own it. With financing, the bank technically owns the title while you’re still making payments on your car. It isn’t until your vehicle is paid off that you actually own your vehicle outright.

There’s No Mileage Cap

A big benefit of financing your car is the lack of a mileage cap. Beyond the costs of fuel and maintenance, there is no financial penalty for driving long distances, which means you can embark on those spontaneous adventures and long road trips in Glassboro without worry.