Buying vs Leasing

Deciding whether buying or leasing your next vehicle is certainly an important decision to make. Both options have several factors to take into consideration such as your monthly payment amount, the impact of your trade-in, and your typical daily commute. Having a clear understanding of the benefits of both buying and leasing will make it easier to decide which choice is best for your lifestyle and budget needs. Donley Ford of Galion has assembled this helpful list of benefits for both buying and leasing your next vehicle.

Benefits of Buying a Ford

• Flexibility - When you buy a Ford, you'll have the freedom to drive as many miles as you desire without any concerns about mileage overage fees typically found in a lease contract. Since you own the vehicle, you will also have the freedom to modify or customize it with aftermarket parts or accessories to match your personality.
• Affordable Payments - Donley Ford of Galion has loans available in a variety of term lengths, giving you plenty of additional options to buy a new vehicle regardless of your financial situation.
• Low Interest Rates - In addition to flexible loan terms, we offer a variety of new vehicle financing rates with APR with qualified credit on your next Ford.
• Ownership Equity - Once you've paid off your vehicle, it's 100% yours. This equity can be leveraged as a down payment towards your next vehicle.

Benefits of Leasing a Ford

• No Effect on Trade-In - Once your lease agreement reaches its end, you won't have to worry about your vehicle's current value or even how it will affect the purchase of a new one.
• Low-Cost Repairs - Since leased vehicles are often covered under the factory warranty for the entire duration of your lease, you can drive with confidence without worrying about costly repairs.
• Flexibility - As time goes on, it's possible that your needs and wants may change. Leasing gives you the flexibility to choose a different model every 2-4 years (depending on the duration of your lease). Rest assured, at the end of your contract you'll have plenty of options. There are even situations where you could get behind the wheel of a new vehicle before your current lease expires.
• Low Monthly Payments - When you lease a vehicle, you are, in a sense, driving it for a specific term with a fixed mileage amount. In other words, you're only paying for the portion of the vehicle's lifespan that you use. Since the value of this "portion" of the vehicle's lifespan is not equal to the full purchase price - your monthly payments can be significantly lower as compared to purchasing the vehicle's "entire lifespan".

Frequently Asked Questions About Buying vs Leasing a Vehicle

Am I able to buy the vehicle at the end of the lease?
Yes! If your lease is reaching its end and your vehicle is fulfilling all of your wants and needs, then why switch to a new one? Your lease contract will include the price at which you can purchase your leased vehicle upon the lease ending.

I have a long daily commute. Does it make more sense to buy or lease?
One important fact to remember is that the majority of lease contracts include a specified mileage limit. This limit can be increased or decreased to accommodate your driving habits. If you have a long daily commute, we recommend purchasing the vehicle as it often makes the most financial sense.

How old do you have to be to lease a vehicle?
In order to lease a vehicle, you must be at least 18 years old.

If you have saved enough money for a sizeable down payment, should you buy or lease?
A large down payment can contribute to keeping your monthly costs low while helping you pay off the vehicle more quickly. Placing a large down payment on a purchase can lower your monthly installments down to a similar level to that of a lease.

I'm always searching for the latest technology in my vehicle. Should I buy or lease?
An excellent benefit of leasing is that you'll always be driving a vehicle with the most recently available technology.

Can you modify a leased vehicle?
Lease contracts generally include restrictions against modifying your vehicle, giving you less freedom to customize your ride. In some cases, genuine OEM accessories may be allowed. Please see your Ford Sales Representative regarding leased vehicle modifications.

When is the best time to lease a vehicle?
The best time to lease is shortly after the model year is introduced, because the residual value will often be at its highest, meaning there's a good chance you will save money on the depreciation cost. A Ford Sales Representative can provide you with the most current information on available lease incentives to help identify which is best for your situation.