Lease vs Buy
What's Right for You
Should you lease or buy your next Ford? - Here's how to decide...
What Exactly is an Automobile Lease?
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. |
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
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.
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?
- Buy or lease a new Ford and take advantage of Ford’s lease loyalty offers.
- Purchase your leased vehicle. You know it. You love it. You can buy it!
- Simply return your leased vehicle
PleaseĀ contact Rochester Ford NHĀ 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 Fordās specifications.
- Want to customize your car – What goes on must come off without damaging or altering the car when you turn it in.
Ā
Consider a Rochester Ford lease if you:
- Want a lower monthly payment or more car for your money.
- Desire less maintenance headaches ā Fordās 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.
Conclusion
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.Ā Please select the new Ford you wantĀ 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.