Are you unsure about the difference between financing and leasing a new car, truck, or SUV from Donley Ford of Galion? To sum it up quickly, an auto finance loan pays for the entire cost of the vehicle, gaining you equity as you repay the loan until it's completely yours. An auto lease plan pays for the depreciation of the vehicle while it's in your possession, and you never gain ownership unless you decide to refinance at the end of your contract's term. Each payment option has pros and cons, so read on to figure out which is the best route for you to take, or contact our finance team by calling (866) 680-3653.
Pros of Leasing
Latest in technology. New vehicles available at our Ford dealership in Galion, OH have the most advanced entertainment and safety features the industry has to offer. A lease deal helps you to afford a brand new car, truck, or SUV and all of its high-tech features with a lower payment. You can even consider getting the highest trim package a model has to offer for a driving experience unlike any you've had before.
Low monthly payments. During an auto lease contract, you're responsible for paying the vehicle's depreciation instead of its full value, resulting in lower monthly payments.
Low maintenance. It's common for lease deals to last for a maximum of three years, which is how long the basic warranty covers the cost of select repairs and certain replacement parts. Out of pocket expenses will be reduced for the duration of your lease contract, saving you money and headaches.
Cons of Leasing
Not cost effective long-term. The longer you have a car, the more money you save by buying it. Therefore, if you refinance your auto lease at the end of the contract or lease several vehicles back-to-back, it could cost you more in the long run.
Steep penalties. Exceeding your contract's maximum mileage, irreversible customizations, and damages beyond normal wear and tear will tack on the penalties and fees that could cost you hundreds and thousands of dollars at the end of your term if you aren't careful.
Qualifications. Drivers with poor credit will have a difficult time finding a lease deal since they are reserved for people with above average credit.
Pros of Buying
Full ownership. By the time you make your final payment, you will have full ownership of the vehicle.
Customizations. Want to add a lift kit to your F-150 or ambient lighting inside your Ford Fusion? Go for it! It's yours, after all. You have no limitations regarding the after market parts you'd like to add to your model.
Sell at any time. Since the Ford model is completely yours once you complete your payments, you can sell it for what you'd like, any time you're ready.
Cons of Buying
High monthly payments. Since you will eventually pay for the entire cost of the vehicle, monthly payments will cost more. Taxes are more expensive in this case and a large down payment is usually required as well.
Auto maintenance. Since you will own the vehicle after the manufacturer warranty has expired, unless you get an extended warranty, the cost of all repairs and replacement parts will be your responsibility.
Depreciating asset. Your new-to-you vehicle will decrease in value as soon as you drive it off the lot, meaning you will lose money if you ever decided to resell it.
Which Payment Plan is Right For Me?
Consider financing if… | Consider leasing if… |
You want the freedom of adding aftermarket parts and accessories | You are confident in your ability to keep the vehicle free of damages beyond normal wear and tear
|
You exceed 10,000-15,000 miles per year | You don't exceed 10,000-15,000 miles per year |
Having the latest in tech features are a low priority | If you have exceptional credit |
You can afford a large down payment and want to gain full ownership | You want a short-term contract and aren't concerned about gaining ownership |
Have you decided whether an auto finance or lease deal is right for you? Do you need additional help making a final decision? Contact the team of finance experts at our Ford dealership in Galion, OH by calling (866) 680-3653.