Lease vs Buy

What's Right for You

Lease Or Buy Final

Should you lease or buy your next Ford? - Here's how to decide...

While the majority of Ford customers still purchase their vehicles, leasing has increased in popularity as car buyers better understand the benefits of leasing a Ford – ESPECIALLY given the rapid changes in technology and electric vehicle choices. Not everyone is a good lease candidate, but many people are – and there are good reasons why. The overall cost of new vehicles has risen with improved safety and technology features as well as the migration from sedans to larger SUVs. Leasing mitigates some of this with lower payments and other benefits we’ll described below.

What Exactly is an Automobile Lease?

Think of leasing like you are borrowing a car – but you only have to pay for the part you use. Basically, you are financing the use of the car and not the car itself.

Lease vs Buy Overview

Consider BUYING if you:

  • Have a long commute and need unlimited miles
  • Plan to have a large down payment
  • Want to customize your vehicle with aftermarket equipment
  • Want to own your Ford free and clear once all payments have been made

Consider LEASING if you:

  • Can anticipate the annual mileage you will be driving
  • Keep your vehicle clean and in good working condition
  • Prefer to have a vehicle always under warranty vs buying extended factory or after market warranties
  • Want the latest technology and safety features.
When you lease a Ford... When your purchase a Ford...
Generally LESS upfront money Generally MORE upfront money
LOWER monthly payment HIGHER monthly payment
No trade-in negotiation required at the end of a lease Negotiated trade-in value
Less maintenance cost (always under warranty) Responsible for maintenance costs after warranty expires
GAP protection included [link to GAP section] Winecellars GAP protection NOT included - added expense to financed purchase
Updated safety & technology every three years Safety & technology does not change
Eligible for Ford Red Carpet Lease loyalty incentives No loyalty incentives
No chance of negative equity Potential negative equity when you sell if value is less than payoff
Applicable sales tax applied to monthly payment and spread out over term of lease Sales tax due on total price of vehicle and due at time of purchase
Purchase price of new car is the same for both.
Insurance cost the same for leased or purchased vehicle.
Consider this… According to Experian, the average term for new car financing is just under 72 months – THAT’S 6 YEARS!! By then, you are most likely ready for a change. Rather than having a higher car payment for six years, why not lease with a lower payment and get a new car with a new warranty and updated safety and technology features every three years?

About Ford Red Carpet Leases

  • A typical Ford lease is 36, 39 or 42 months at 10,000, 12,000 or 15,000 miles per year. You may pre-buy additional mileage at the time of your lease if you choose.
  • There is NO security deposit required.
  • Ford offers lessors a loyalty bonus that typically runs between $1,000 to $2,000 depending on model.
  • Rochester Ford offers a very generous wear and tear allowance when you turn your car in. This covers typical scratches, dings, and minor deferred maintenance items.

Less Sales Tax and NO Negative Equity

  • When you purchase a vehicle, you have to pay the entire sales tax amount UP FRONT when you register it (depending on your state of residence). When you lease, the sales tax rate is added to each monthly payment only.
  • According to Edmunds, a record 40% of consumers are upside down on the vehicle they are financing. This means that their car is worth less than what they owe. This is not possible when you lease a Ford because at the end of the lease, you owe nothing and you don’t carry forward any negative equity into your next lease or purchase. In fact, your Ford may be worth more than the lease-end value, putting $ in your pocket!

Common Questions About Leasing

What is GAP Protection?
GAP stands for Guaranteed Auto Protection and covers any difference between the current market value of the car (insurance settlement) vs your outstanding loan or lease payments in the event of total loss, theft or destruction of the vehicle. All Rochester Ford leases INCLUDE GAP protection. If you purchase a car, you have to buy GAP Protection separately.

What is Cash Cap Reduction?
When you put money down on a purchased vehicle, you lower the payments because you are financing less money. That makes sense.

When you put money down on a leased vehicle (called Cash Cap Reduction), you buy down the payments only (on a car you don’t own). In the event you total your car toward the beginning of the loan, GAP protection will cover the value of your car but you will lose your money down. That’s why we recommend putting the least amount of money down on a lease as possible.

What happens if I need to get out of my lease early?
When you sign a lease agreement you are obligated to make all of the monthly payments until the end of the lease. However, job downsizing, divorce, new baby or other factors may change your vehicle requirements. Don’t walk away from the lease and harm your credit. Rochester Ford will buy out your existing lease, no matter what make or model, for a new Ford that best meets your needs. Give us a call at 888-869-5889 and we will be happy to inform you of your options.

What are my options after my vehicle lease ends?

contact Rochester Ford NH or call us at 833-850-1900 to go over these options.

You should NOT lease a Ford if you:

  • Tend to drive more than 15,000 miles per year. You should consider buying a Ford Extended Warranty. An extended warranty can cost anywhere between $1,600 and $4,500 for three to six years of coverage. Purchasing at the time of purchase will generally cost less since older vehicles with higher mileage can expect to pay more.
  • Expect a change in your job or family status – Changing status (job, family, baby) could alter the requirements of your current vehicle. Early termination of your lease could be costly.
  • Like to keep your cars for a long time – This allows you years of no car payments.
  • Mistreat your cars or don’t maintain them – You are responsible for maintaining your leased vehicle according to Ford’s specifications.
  • Want to customize your car – What goes on must come off without damaging or altering the car when you turn it in.


Consider a Rochester Ford lease if you:

  • Want a lower monthly payment or more car for your money.
  • Desire less maintenance headaches – Ford’s comprehensive 3 year, 36,000 mile bumper-to-bumper warranty covers most items except for regular scheduled maintenance – which you would do anyway whether you bought it or leased it.
  • Have fairly consistent mileage history so as to not incur mileage penalties.
  • Enjoy the latest safety and technology features as well as mileage improvements.
  • Just like the smell of a new car.

As you can see, there are many factors to consider when deciding if a Ford lease is right for you. We recognize that every customer has unique requirements. At Rochester Ford NH, our goal is to LISTEN to your requirements and PROVIDE you with helpful information to make a good decision. Please select the new Ford you want and then ask us to run BOTH lease and purchase payments for you so you can compare for yourself.

While we make every effort to ensure the data listed here is correct, there may be instances where some of the factory rebates, incentives, options or vehicle features may be listed incorrectly as we get data from multiple data sources. Rochester Ford price includes dealership discounts, destination fees and retail customer cash from Ford Motor Company. Additional Ford offers and rebates listed below Rochester Ford price are subject to eligibility. Certain restrictions apply. Dealer administration fee of $470 is in addition to the Rochester Ford selling price. Price does not include applicable tax, title, and license charges.