When it comes to buying or leasing a car, truck or SUV, many things should be considered. To help you make an informed decision, we have provided the information below. We hope you find it informative and useful.
To start, when you buy the new or used vehicle you pay for the entire cost of the vehicle. When you lease the new or used vehicle, you pay for only a portion of the vehicle's cost, which is the part you use during the time you are driving.
Whether you pay for the vehicle with cash or you finance it and make monthly payments, it is yours. Of course, if you are financing it, you will have to meet the obligations the lender requires, like a certain down payment amount and timely monthly payments.
If you are financing it, the bank will probably request a down payment. You can also trade-in another vehicle and use any equity toward your down payment. The amount of the down payment is usually based on the lender's requirements and your credit score.
Your vehicle will be worth whatever you can sell it for it for in the future and that depends on how well you maintain it. Be smart and protect your investment with regular scheduled maintenance by our Olathe Ford Lincoln Service Department.
Once you have paid off what you owe on your contract, that is it. Your vehicle is 100% yours. The lending institution including banks and credit unions will send you a Lien Release as proof that the vehicle was completely paid off and all yours.
You do not own the car when you lease. You are paying for the use of the vehicle, but the finance institution (Ford Motor Credit) that you leased through actually owns it. This is usually why you pay less per month in a lease than if you were to buy the vehicle.
Leases often do not require any type of down payment. All you have to pay is the first month's payment and a security deposit along with the acquisition fee and other fees and taxes. But, as with a purchase, if you want to lower your monthly payments, you can always pay more upfront or prepay your lease.
In most leases you do not end up owning it so you do no end up selling it. That is the financial institution's job. Although you may have mileage limits along with wear and tear guidelines that could cost you extra money when you turn your vehicle back in.
Most people return the vehicle at the end of the lease term. But some like to purchase it during their lease or at the end. Others like to trade it in before their lease is over. Just ask us about these different options and we will make sure you have your lease set up the way you want it. We will look into any early bird or lease pull-ahead programs you can take advantage of and suggest what is best for you.
The best cars to lease are those with the best book value after the term of the lease. Since they depreciate less, you pay less. Ask one of our Sales Specialists at Olathe Ford Lincoln to review the lease ratings to see which cars retain their value.
Ford Motor Credit offers a complete package of convenience, savings and benefits. In particular, the Ford Motor Credit Red Carpet Lease Program provides several advantages that are not always available from other lease companies. View this month's Red Carpet Lease Specials here!