Buying vs Leasing a Ford

When you lease a vehicle, you are essentially renting for a finite period, typically 36 months. Though deals exist for other loan terms, the monthly cost is lower than purchasing outright. At the end of the lease, you’ll return the vehicle and have to decide if you want to start a new lease, buy a car, or go carless.

Dollar for dollar, typically, leasing gets you a higher-end vehicle than they could get for the same amount if they were financing the entire cost of the car. In most states, you can save on taxes when leasing, as you are only taxed on the sales prices. Premium vehicles are especially popular as leases. The average monthly payment is lower since you only finance a portion of the car’s price. Since most new vehicles have at least three years of bumper-to-bumper warranty coverage, a leased car promises to be hassle-free, with few unforeseen expenses. When it’s time to move on, there’s no haggling with private sellers or any need to sell the car yourself.

Sometimes, it seems like buying a car is a Catch-22 situation. You need money to buy a car, but you need a car to get to work to earn money to buy one. This is where financing comes into play. When you finance a vehicle, a financial institution lends you the money you need to buy the car. In exchange, you pay the lender interest and possibly fees to borrow that money over a specific number of months. When you make your monthly payment, it is split into two parts. First, the principal payment goes toward paying back your loan balance—the interest payment, which pays the interest due.

Financing a car means a buyer purchases their vehicle by securing a loan through a bank or other creditor that will extend over a specific time and require monthly payments that go toward both principal and interest. Buyers also choose to put a significant down payment on the car at the time of purchase, which lowers the loan amount and, therefore, the interest and monthly payment. Many car buyers use the money received for their trade-in as the down payment on their new vehicle. Once you repay the loan in full, your lender will send a lien release document to the state transportation agency. The car’s title will then be updated and transferred to you.

The Don Vance Ford finance department is focused on ensuring your experience with our dealership exceeds your highest expectations. Our friendly finance managers work with people from all over the world to give our customers the right finance program at the most competitive rates. Whether your credit is perfect or not so excellent, we can custom design the right financing package for your next vehicle purchase. Once you find the ideal Ford, you can use our payment calculator to estimate your buying power and monthly payments. You can use our quick pre-approval form to speed up the process to qualify for one of our finance programs.