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Buy if you drive more than about 15,000 miles a year, keep vehicles past five years, or plan to tow, modify or work your truck hard. Lease if you want a lower monthly payment, like driving a new Chevrolet every two to three years, and your mileage is predictable. Buying costs more per month but ends in ownership. Leasing costs less per month but ends with a return, a buyout, or a new lease.
The monthly gap between a lease and a loan on the same Chevrolet isn't a discount. You are paying for a different thing.
A loan payment repays the entire amount financed, the price after your down payment and trade-in plus taxes and fees, with interest, over the term. When the last payment clears, you own a vehicle that still has value.
A lease payment covers only the value you use up during the term: the gap between the negotiated price and the vehicle's predicted value at lease end (its residual, defined in the lease terms table below), plus a finance charge. That gap is much smaller than the full price, so the payment is lower.
| Payment piece | Lease | Loan |
|---|---|---|
| Principal | (Capitalized cost − residual value) ÷ months | Amount financed, repaid in full over the term |
| Cost of borrowing | Money factor applied to the capitalized cost plus residual | APR applied to the declining loan balance |
| Factor | Buy (finance) | Lease |
|---|---|---|
| Monthly payment | Higher | Lower on the same vehicle |
| Mileage | Unlimited | Annual allowance set in the contract, overage billed per mile |
| Wear and tear | Affects only your resale value | Excess wear can be charged at turn-in |
| Modifications | Anything you like | Generally must be returned to original condition |
| Long-term cost | Lowest if you keep the vehicle for years after payoff | Continuous payments if you lease back to back |
| Warranty coverage | Runs out partway through a long loan | A 36-month lease at 12,000 miles a year or less stays inside Chevrolet's 3-year/36,000-mile bumper-to-bumper coverage; higher-mileage leases run past it on miles first |
Drive long distances. Commuting from Edmond, Norman or Yukon into Oklahoma City adds up fast, and there is no mileage cap to manage.
Keep vehicles for six, eight, ten years. Every payment-free year after payoff is where buying pulls ahead.
Tow, haul, lift or accessorize a Silverado or Colorado. Owners can modify freely.
Want the newest safety and infotainment tech every few years.
Drive a predictable, moderate number of miles and can pick an allowance that matches.
Prefer a lower payment and a vehicle that stays under factory warranty for most or all of the term.
Use the vehicle for business. Tax treatment differs between leasing and buying, so ask your tax advisor which suits your situation before choosing.
Are unsure how long you'll keep it. A lease with a purchase option keeps the door open to buying later.
Lease paperwork uses different vocabulary from a loan. These are the terms that decide what you pay, and what to ask about each one.
| Term | What it means | What to ask |
|---|---|---|
| Capitalized cost | The price the lease is based on, the lease equivalent of the sale price | Is it negotiable, and what is included in it? |
| Cap cost reduction | Any down payment, rebate or trade equity that lowers the capitalized cost | How much is cash down vs. rebates? |
| Residual value | The lender's forecast of the vehicle's value at lease end, and your buyout price | What is the residual as a dollar amount? |
| Money factor | The lease finance rate, written as a small decimal. Multiply by 2,400 for a rough APR equivalent | What is the money factor, not just the payment? |
| Mileage allowance | Miles per year included in the payment | What does each mile over the allowance cost? |
| Disposition fee | A flat fee charged at turn-in to prepare the vehicle for resale | Is it waived if I lease or buy another GM vehicle? |
Your options at the end of a GM Financial lease are straightforward, and it pays to decide which one you want a few months before the maturity date.
Schedule an inspection, turn the vehicle in, and pay any excess mileage or wear charges plus the disposition fee listed in your agreement. Bob Howard's Chevrolet lease return page covers the local process.
Purchase the vehicle for the residual value set in your contract. This often makes sense when you are well under your mileage or the vehicle is worth more than the residual.
GM Financial waives the disposition fee when you move into another new GM vehicle or purchase your current one.
Source: GM Financial, Disposition Fee: Asked and Answered. Your exact disposition fee and per-mile overage rate are printed in your own lease agreement.
Normal use is expected on a returned lease. Damage beyond it can be billed. The exact standards are in your lease agreement and the lessor's inspection guidelines, but the items inspectors look at are consistent across the industry.
Tread below the minimum in your agreement, mismatched tires, and curbed or cracked wheels are common charges. Replacing worn tires before turn-in is often cheaper than the charge.
Cracked or chipped windshields, dents and deep scratches beyond the size limits in the guidelines, and poorly repaired prior damage.
Burns, tears and stains in the upholstery, plus missing items such as keys, the owner's manual, floor mats or the cargo cover.
Schedule a pre-inspection a few months before your maturity date. It shows what would be charged while there's still time to fix items yourself or decide that buying the vehicle out is the better move.
Oklahoma levies a 3.25% motor vehicle excise tax and a 1.25% sales tax on vehicle purchases. For leases, the excise tax is typically built into the lease, and leases of 12 months or longer are generally not charged general sales tax on top of it when the excise tax has been paid (Sales Tax Handbook summary of Oklahoma lease taxability). The details depend on the contract, so ask for the tax lines to be itemized on your lease worksheet. The Chevrolet financing guide covers how the same taxes apply when you buy.
Advertised lease payments assume a set down payment, term, mileage allowance and credit tier. When comparing offers, compare the total due at signing, the mileage allowance, and the money factor and residual, not just the monthly figure.
Chevrolet's lease and APR programs change month to month and vary by model, trim and region, so a payment printed on a guide page would be stale within weeks. Check the new vehicle specials and the Bob Howard finance center for the programs available now, then ask the finance team to price the same vehicle as both a lease and a loan so you can compare the two on identical terms.
Is it better to lease or buy a Chevy?
Buying is usually better if you drive a lot, keep vehicles for many years, or plan to modify a truck. Leasing is usually better if you want a lower monthly payment and a new vehicle every few years, and your annual mileage is predictable.
Why is a lease payment lower than a loan payment?
A lease payment covers only the difference between the vehicle's price and its predicted value at lease end, plus a finance charge. A loan payment repays the entire amount financed.
What happens if I go over my lease mileage?
Miles over the allowance in your contract are billed at the per-mile rate listed in your lease agreement when you return the vehicle. Buying the vehicle at the residual value avoids the charge.
Can I buy my Chevy at the end of the lease?
Yes. Your lease agreement lists a purchase price based on the residual value, and you can buy the vehicle for that amount at lease end.
Do I have to pay a disposition fee when I return my GM Financial lease?
A disposition fee is charged when you return the vehicle, but GM Financial waives it if you lease or buy another new GM vehicle or purchase your current one.
Is a car lease taxed in Oklahoma?
Yes, through the motor vehicle excise tax, which is typically built into the lease. Leases of 12 months or more are generally not charged general sales tax when the excise tax has been paid; ask for the tax lines itemized on your worksheet.
Apply once and the finance team can show the same Chevrolet as a lease and as a purchase, with the down payment, term and mileage spelled out, so you can compare them on equal footing.
