When you're considering a new Chevrolet Silverado or GMC Sierra, one of the most important decisions you'll face is whether you should lease or buy a car. This choice affects your monthly budget, long-term costs, and driving experience. With average auto loan interest rates sitting at 7.22 percent for a 60-month new car loan and the average lease payment for a new car at $595, compared to the average monthly loan payment for a new car at $745, understanding the financial implications becomes crucial for Corsicana drivers.
The decision between leasing and buying your next Chevrolet or GMC truck depends on several factors unique to your situation: driving habits, budget preferences, and long-term goals. Let's explore the key considerations that will help you make the right choice for your needs.
Understanding the Lease vs. Buy Decision
Your payment is based only on the car's depreciation during the lease term (plus taxes and finance charges), whereas a car loan payment is based on the full value of the vehicle. This fundamental difference explains why lease payments typically run lower than loan payments for the same vehicle.
However, two back-to-back three-year leases will cost thousands more than buying a car (with a loan or with cash) and owning it over that same six-year period. And the savings increase for car buyers if they continue to hold on to the car, say, for three more years (for nine years total).
Current Market Conditions
The 2025 automotive market presents unique considerations for the lease versus buy decision. In 2025, that question is even more relevant due to evolving market conditions, rising interest rates, and shifting manufacturer incentives. With insights from CarEdge Co-Founder Ray Shefska, we break down the pros and cons of buying versus leasing.
In today's market, with leasing incentives improving and financing rates remaining high, leasing is often the smarter move—especially if you're seeing limited financing deals. This trend makes it particularly important to evaluate both options carefully.
The Case for Leasing Your Chevrolet or GMC
Leasing offers several compelling advantages, especially for drivers who prefer newer vehicles with the latest technology and safety features.
Lower Monthly Payments
Leasing can be less expensive than a new-vehicle loan in the short term due to lower monthly payments. For many Corsicana drivers, this means accessing a higher trim level Silverado or Sierra that might otherwise stretch their monthly budget.
Lease payments are often lower than loan payments, making it easier to afford a higher-end model. This advantage proves particularly valuable when considering feature-rich trims like the GMC Sierra Denali or Chevrolet Silverado High Country.
Always Drive New Technology
Leasing lets you upgrade to a new car every few years, keeping you in the latest models with the most advanced features. Given the rapid advancement in truck technology, from advanced trailering systems to driver assistance features, this benefit appeals to drivers who value cutting-edge capabilities.
Warranty Coverage and Reduced Maintenance
Most leases last 2-3 years, aligning with the manufacturer's warranty period and reducing repair costs. With a newer vehicle, you're less likely to encounter major maintenance issues. This predictability helps with budgeting and eliminates concerns about unexpected repair costs.
Flexibility at Lease End
At the end of your lease, you can return the car, buy it, or lease a new one. This flexibility allows you to adapt to changing needs without the commitment of ownership.
The Case for Buying Your Chevrolet or GMC
Purchasing a vehicle provides different advantages that appeal to drivers with specific priorities and usage patterns.
Long-term Value and Ownership
Once you've paid off the loan, the car is yours, and you can keep it as long as you like. This ownership provides long-term value, especially for drivers who typically keep vehicles beyond the loan term.
Buying wins on long-term value — once the loan is paid off, you have no monthly payment, and you own an asset you can sell or trade. For many Texas drivers who keep trucks for many years, this represents significant savings.
No Mileage Restrictions
Drive as much as you want without worrying about penalties. This freedom proves particularly valuable for Texas drivers who cover substantial distances for work or recreation.
Leases come with mileage limits. Standard leases allow around 10,000 to 12,000 miles per year (some go up to 15k/year). If you go over, there's a per-mile charge (often around $0.15 to $0.25 per mile over the limit).
Freedom to Customize
You can personalize your car to suit your style and needs. For truck owners who want to add accessories, modify performance, or customize their vehicle for specific work applications, ownership provides this freedom.
Building Equity
Buying builds equity over time. As you pay down the loan, you build ownership value that can be applied toward your next vehicle purchase.
Texas-Specific Considerations
Texas drivers face unique considerations that can influence the lease versus buy decision, particularly regarding taxation and typical usage patterns.
Texas Lease Taxation
Texas handles lease taxation differently than most states. Texas laws require that the lessor (the lease company) pay sales tax on the full value of any vehicle they buy from a dealer and lease back to a lessee (you and me). This is different from most other states in which no such tax is charged to the lessor, or the tax is administered in a different way.
Car leasing in Texas costs more that in most other states due to the way that the state taxes leases -- which taxes the entire value of the vehicle, just like buying. This tax structure affects the overall cost comparison between leasing and buying.
However, no tax is due on the lease payments made by the lessee under a lease agreement. Also, no tax is due by the lessee on the purchase of a motor vehicle for lease in Texas. The lease company handles the tax obligation upfront.
High Mileage Driving Patterns
Many Texas drivers cover substantial annual mileage due to the state's geography and rural areas. If you drive a lot, buying might be better to avoid mileage fees. This consideration proves particularly important for drivers who regularly travel between cities or use their trucks for work purposes.
Electric Vehicle Considerations
If you're considering the Silverado EV or future GMC electric trucks, leasing presents unique advantages.
Over 50 percent of EV drivers chose a lease in 2024, up from 30.7 percent in 2023 and just 9.8 percent in 2022. It's easy to see why: Those leases qualified for a federal tax credit of up to $7,500 without meeting restrictive requirements.
Some automakers offer $7,500 in EV leasing incentives, even if the car doesn't qualify for the tax credit when you buy. This incentive can significantly reduce the effective cost of leasing an electric truck.
EV technology is advancing so rapidly that today's EVs may end up obsolete in a decade. Battery ranges are growing, charging standards and speeds are changing, and purchase prices are dropping. Leasing provides protection against rapid technological obsolescence.
Making the Right Choice for Your Situation
The decision ultimately depends on your specific circumstances and priorities.
When Leasing Makes Sense
Consider leasing if you:
- Prefer lower monthly payments
- Want to drive newer vehicles with latest technology
- Drive within typical mileage limits (10,000-15,000 miles annually)
- Value warranty coverage and predictable costs
- Don't need to customize your vehicle
- Plan to get a new vehicle every few years
When Buying Makes Sense
Consider buying if you:
- Drive high annual mileage
- Plan to keep your vehicle for many years
- Want to build equity and eventually eliminate monthly payments
- Need to customize or modify your truck
- Value complete ownership and control
If you're stretching your budget to afford the monthly payments on a purchase, consider leasing so you don't become "car poor." On the other hand, if you can comfortably buy the car you want, owning it will cost less overall than leasing continuously.
Current Financing Environment
Understanding current market conditions helps inform your decision. Bankrate's expert predicts that by the end of 2025, five-year new car loan rates will reach an average of 7.0 percent and four-year used car loans, 7.75 percent.
The average monthly auto loan rate for borrowers with "super prime" credit was 5.25% in the second quarter, the latest available, vs. an average 15.77% for borrowers with "deep subprime" credit. Your credit score significantly impacts the financing terms available to you.
Working with Chevrolet GMC of Corsicana
Our experienced team can help you evaluate both leasing and financing options for your next Chevrolet or GMC truck. We work with multiple lenders to secure competitive rates and can explain how current incentives affect both lease and purchase scenarios.
Whether you're interested in browsing our new Chevrolet inventory or exploring GMC trucks and SUVs, we provide transparent information about all financing options. Our finance team can show you side-by-side comparisons of lease versus loan payments for any model you're considering.
You can also get pre-approved online to understand your financing options before visiting our showroom, or value your trade to see how equity in your current vehicle affects your decision.
Frequently Asked Questions
How do lease payments compare to loan payments for the same truck?
The average lease payment for a new car is $595, compared to the average monthly loan payment for a new car at $745. However, lease payments don't build equity, and you'll always have a monthly payment if you continuously lease. The total cost comparison depends on how long you plan to keep the vehicle and your annual mileage.
What are the mileage restrictions on truck leases?
Standard leases allow around 10,000 to 12,000 miles per year (some go up to 15k/year). If you go over, there's a per-mile charge (often around $0.15 to $0.25 per mile over the limit). For Texas drivers who cover substantial distances, this limitation can make buying more economical despite higher monthly payments.
How does Texas taxation affect the lease versus buy decision?
Texas taxes leases differently than most states. Leasing is more expensive in Texas than most other states because the leasing customer therefore pays full sales tax just as if he was buying the vehicle, not leasing. However, no tax is due on the lease payments made by the lessee under a lease agreement - the lease company handles the upfront tax obligation and typically passes this cost to the customer through higher payments.