Buying vs. Leasing a Ford Vehicle
New car shoppers are often faced with a common dilemma: should they buy or should they lease their next new vehicle? While the two terms are often used interchangeably, both options come with their own unique benefits and advantages that are worth taking into consideration. In an effort to make your decision easier, our team at Preferred Ford of Grand Haven has created this handy guide that covers this topic in greater detail. You’ll be able to shop like a pro once you understand all the differences between buying and leasing. Let’s get started!
Advantages of Buying a New Ford
Flexibility
Most lease contracts contain plenty of restrictions that you simply won’t have to deal with when you finance a new Ford. For example, most leases have mileage restrictions that involve significant penalties if you exceed them. You’re free to drive as often or as far as you like when you finance! Similarly, you’re likely prevented from modifying or personalizing your leased vehicle. By financing, you can enjoy the freedom to add a custom touch to your new vehicle.
Affordable Payments
Searching for a monthly payment that you can afford and makes sense for your budget? Finance terms are available in longer terms including options for 48, 60, 72, or even 84-month term lengths. For comparison, most leases are offered in shorter 24-month or 36-month term lengths that can lead to higher payments on a monthly basis.
Attractive APRs
Provided you qualify for them, eligible buyers can maximize their savings by accessing exclusive financing rates with low APRs. When you consider how low these rates may be, financing your new Ford might be the more financially attractive option compared to a lease contract. That’s even if you were thinking about paying the full purchase price in cash!
Ownership Equity
Once your lease contract concludes, most drivers simply hand over their keys and walk away without any equity at all. When you finance, that’s not the case! After your final payment is received, you’ll be the official owner of your vehicle. This means you can drive it for years to come without making any payments. Or if you prefer, you can use this equity position as a down payment in the form of a trade-in for your next car when you’re ready to upgrade. It’s entirely your decision!
Benefits of Leasing a New Ford
Affordable Lease Payments
Another way to think of a lease contract is to understand the fact that you’re basically paying for the percentage of the vehicle’s lifespan that you’re actually using. For example, let’s pretend that a typical lifespan for a new car is about 10 years. Due to the fact that you’re only leasing the vehicle for the first 2 or 3 years of its lifespan (based on most lease contracts), you’ll be saving money in the long run when compared to purchasing the vehicle outright.
Low-Cost or Zero-Cost Maintenance
In many instances, you’ll never have to worry about paying for major repairs to your leased vehicle. This is because your vehicle will be covered by factory warranty protection for the entire period that you lease the vehicle. Better still, select models even include complimentary scheduled maintenance programs that can help you keep more of your hard-earned money in your pocket!
Flexibility
You just never know what the twists and turns of life can bring you. Every now and then, significant changes to your lifestyle can change your driving needs. When you lease, you’ll appreciate the flexibility to make a change after only a couple of years (based on your lease term). Have you changed jobs and now need a more fuel-efficient car? No problem! What about bringing home a new member of your family and requiring additional space? It’s as simple as returning your leased vehicle and choosing your next Ford!
No Impact on Trade-In
Thinking about how much your new vehicle will depreciate over time is never fun to imagine. Thankfully, leasing your vehicle means that you won’t have to concern yourself with the unknown. At the end of your lease, you can simply return your vehicle and choose a new model without worrying about future resale value. That’s the bank’s problem!
Buying vs Leasing a Ford - FAQ
My job involves driving long distances all across the state. Would it be better for me to lease or buy my next Ford?
Most lease contracts contain predetermined mileage limits along with penalties for exceeding them. While it’s possible to increase or decrease these limits based on your needs, a long commute means that you might run the risk of exceeding them and paying a penalty. Financing your vehicle allows you to avoid any of these restrictions and gives you the ability to drive as often and as far as you’d like.
Having the latest technology and features inside my vehicle is important to me. Would you recommend buying or leasing?
As we covered in greater detail above, a huge perk of leasing involves the freedom to change models or upgrade your vehicle every few years. Looking to impress your friends and family with all of the great safety, tech, and comfort features inside your new Ford? Leasing makes it possible to always have access to the latest and greatest in terms of feature content.
Even if I lease a vehicle, is it still possible to purchase it at the end of the contract?
It’s certainly easy to get attached to the Ford vehicle you’ve been driving for a few years. Your lease contract likely contains a clause where you’re able to purchase the vehicle outright at a predetermined price at the end of your contract. If you’re not ready to say goodbye, our team of experts are standing by to assist you during the purchase process from start to finish.