Should You Lease or Buy Your Next Ford?

Shopping for your next Ford, and wondering what sort of finance package makes the most sense for your goals? Whether you’re looking for a Ford loan or a Ford lease near Stone Mountain, you can find flexible, custom-made offers here that reflect your priorities.

Deciding whether to lease or buy really comes down to understanding the differences between leases and loans. Below, we’re covering the pros and cons of car leases versus car loans.

Lease

The main difference between a lease and a loan is that a lease does not put you on the path to ownership. It’s just another way to say that you’re “renting” a vehicle, rather than buying it.

Pros

Lower Monthly Payments

If you’re trying to keep your monthly costs low so you can keep extra funds for your Stone Mountain lifestyle, a lease could make sense for you. Lease payments typically have lower monthly installments than loans. The reason for this is that, with a lease, you’re only paying for the first handful of years of the value of the model, i.e., a portion of its total value.

Warranties Are Active

One of the most popular benefits of a lease is the warranty program. Because lease contracts generally refer to new vehicles (though you can lease an older vehicle), that means that the warranties are still in place.

Many shoppers find the idea of budgeting for major repairs overwhelming. With the warranties still active on a lease, drivers don’t need to worry about manufacturer defects and other covered issues breaking the bank. They often pay just a small deductible or copay, and the warranty covers the rest.

Maintenance Might Be Covered

Many lease packages include maintenance for the duration of the lease. This can save drivers money on regular tune-ups like oil changes, filter changes, tire rotations, and fluid top-offs.

Some drivers also find the prospect of finding a mechanic they trust and comparing maintenance prices to be overwhelming. It’s hard to know when you’re getting a fair price, and whether or not the mechanic is trained to care for your particular make and model.

With a lease package that includes maintenance, you don’t need to shop around for a body shop that will maintain your model. Just bring it back to our dealership, and we’ll perform maintenance, up to factory standards, free of charge.

Enjoy New Designs and Features

Because lease packages are most commonly applied to new cars, when you lease, you always get to enjoy the latest features. This can be important to drivers who like having the most up-to-date technology at all times.

Ford routinely refines features like voice-activated controls and touchscreens. So, only by swapping out your vehicle for a new model every few years can you guarantee you’re benefiting from the latest amenities.

This can be especially beneficial to those who prioritize safety, since Ford is known for regularly updating its safety features. If you like knowing you’re always benefiting from the newest safety features, leasing could be right for you.

Cons

Mileage Limits

It is important to keep in mind that lease packages have mileage limits. These can range from 10,000 miles to 15,000 miles a year. Some high-mileage packages allow for up to 25,000 miles per year. However, if you go over your mileage, the dealership will charge you an overage fee, and it can be costly. Ford offers customizable mileage options on their leases, and we can help you fine-tune the one that’s right for you.

Doesn’t End in Ownership

You don’t build equity in a lease (unless you choose to buy it at the end). So your contract doesn’t end with you owning an asset. This is really ideal for people who are trying out a specific model to see if it suits their lifestyle, don’t want to commit to owning a vehicle at the moment, or are looking forward to upgrading to a new model every couple of years.

Charges for Wear and Tear

Should you turn your leased vehicle in with any damage, the dealership will charge you for wear and tear. Every little scratch and dent can add up to a big bill on the day you turn in your car. With a Ford lease, normal amounts of wear and use are covered, but you are responsible for wear that exceeds the normal guidelines.

Lease Turn-in Fees

Turning in a lease usually comes with a “disposition” fee, which is usually several hundred dollars.

Cannot Customize or Majorly Modify

Because you don’t own the vehicle, you are not able to make any major modifications to your leased vehicle. Doing so will often result in fines when you turn your vehicle in, and can even invalidate any active warranties.

Loan

If you are thinking about buying to own long-term, then a loan is the way to go. Over the long term, loans do make more financial sense. It’s just important to understand how they work.

Pros

You Own It in the End

At the end of your loan payments, you own the vehicle outright. That means you own an asset of considerable value, which makes many individuals feel more financially stable, since they also have the freedom to sell the vehicle.

No Mileage Restrictions

There are no mileage restrictions on a vehicle that you purchase. That can make ownership the most practical choice for individuals who need to drive a lot for work, like ride-share drivers, traveling salespeople, and similar professionals.

Free to Customize and Modify

You are free to customize the vehicle you buy. It’s yours to do what you want with. That means you can add kits or special packages that let your vehicle better support your work or recreation, or simply reflect your style. In some cases, these customizations can increase the vehicle’s value.

Better Long-Term Financial Choice

If you buy a vehicle, you will spend less to drive a car over the long term than someone who leases. That’s because one day, your loan payments will end. Then you’ll just be driving your vehicle, free and clear of installments.

Better finance rates. Car loans typically have better financing rates than car leases, especially at the dealership. Dealerships are incentivized to encourage shoppers to commit to ownership so they can offload their inventory, and they want to be competitive with traditional banks.

Cons

Higher Monthly Costs

Even though you’ll pay less in the long run if you buy, you will likely pay higher monthly costs. That’s because you are financing the full value of the vehicle, and that is reflected in the monthly installments.

Eventually, You’ll Pay for Repairs and Maintenance

The warranties will expire on your vehicle. That means that one day, major repairs will fall on you. It’s important to budget accordingly. Maintenance will also be your financial responsibility from day one.

Some Features Might Be Outdated

The longer you keep your vehicle, the more likely it is that its features/design become outdated. The only way to have the freshest features is to get a new car every few years, which is more typical through leasing.

Find Financing Fit for Your Stone Mountain Life Here

We offer both car leases and loans to Stone Mountain shoppers because each one delivers value to the right person. Depending on the phase of life you’re in, your long-term financial needs, and your overall preferences, one financial product might make more sense for you than the other.

At Loganville Ford, we want to empower you with knowledge so that you can choose the payment plan that keeps you in the driver’s seat of your financial future.