Should You Buy or Lease Your Ford?
After you’ve done all of the research, taken your test drives and have finally decided on the perfect Ford vehicle for you, one question still remains. Should you buy or lease your new Ford? Most folks never ask themselves that question — they just go with what they know. According to recent numbers from the major credit reporting agencies, nearly three out of four new vehicles are bought, with the remaining one being leased. That means 75% of folks get a loan for their new car purchase and make payments toward one day owning it. The remaining 25% or so decide to lease. But what’s the right choice for folks in Athens, Jefferson, Loganville, Winder and the rest of North Georgia?
As with most things in life, the decision to buy or lease isn’t a clear cut choice. There are a lot of factors that need to be considered — including whether you prefer to upgrade your vehicle every few years, how many miles you drive per year, and more. The information we’ll share with you here is intended to make your decision a more informed and educated one. So, let’s take a look at the pros and cons of each choice.
The Decision to Buy and How it Works
- Buying your vehicle means that it’s yours to do with as you want, as long as you continue to make the monthly payments.
- The three factors that determine your monthly payment are; the amount of your loan, how many months you finance for, and the annual percentage rate of the loan.
- The amount you ultimately pay for the vehicle includes interest charges that can be significant.
- Once you’ve made the final payment on the vehicle, it becomes yours. That means you can choose to drive it payment-free, sell it, or use it as a trade-in on a new Ford.
- Buying a car and making the monthly payments on time each month can improve your credit score.
Deciding to Lease Your New Ford
Leasing your new Ford can make a lot of sense, depending on your circumstances. A lease is like paying for the use of a vehicle that someone else owns. Many people choose to lease because they can deduct or write off the amount of the lease payment on their taxes. This is true of someone who uses their vehicle primarily for business purposes. But there are other reasons to lease that don’t have to do with just the tax advantages.
Here are a few things to consider when leasing:
- When you lease, you’re paying for only the portion of the vehicle you’re using. That’s because it will still have a value at the end of the lease period, and that amount is deducted from what you finance in a lease.
- Because the vehicle (and its residual value) reverts to the lease company at the end of the term, the monthly lease payments are usually lower than if you purchase the car outright.
- Lease terms are typically two or three years in duration, so you can essentially drive a new Ford every couple of years by rolling over your lease.
- Lease terms usually put a limit of around 12,000 miles maximum allowed on the vehicle per year. If you exceed this amount, you can pay a lot in penalties.
- At the end of the lease, you need to either give the vehicle back to the leasing company, or choose to buy it by paying the residual value. If you choose to buy out the lease, it can work out to be more expensive in the long run than buying in the first place.
Here at Athens Ford we believe in complete transparency in the purchase process. Our finance team will help you make the decision that works best for you, whatever that may be. They’ll also work hard to get you the payment you want for the car you deserve. Visit our financing page to see all of the benefits of buying your next Ford from us. You can even see just how much you qualify for, and apply for financing using our secure online form. It’s just another part of the Athens Ford advantage – and why we’re the best choice (and if you’re in Kentucky, Frankfort Ford) when it comes to buying your next Ford vehicle.
Written By: Mark Ficken
Connect with us
