The Benefits of Buying and Leasing Your Next Vehicle with Tom Holzer Ford

Finding the right vehicle for all of your on-road requirements here at our Farmington Hills Ford dealership is just the first step on the journey to a better driving experience, and we'd love nothing more than to assist you however we can every step of the way. If you've already chosen the model that most appeals to your wants and needs behind the wheel, then the next step is to decide on how you're going to get it home; if you're not sure, then rest assured that our finance center team is here to help you decide whether you'd prefer an auto loan or Ford lease for your budgeting needs.


Lease a Ford

If you're the sort of driver that loves having all the latest and greatest technologies at your fingertips, then an auto lease might be the best choice for you. Leases only last a couple of years so, when the lease is up, you'll be free to move on to a more modern vehicle with the newest tech for you to enjoy. As long as you don't surpass the pre-determined mileage restrictions and keep it maintained on your own, then a lease could easily make your driving dreams comes true. Consider the following benefits:

  • You only pay the estimated worth of the vehicle at the end of the lease, which is often just a small portion of the brand-new price.
  • Leased vehicles are under warranty for repairs
  • You have a few choices for your next action as the end of the lease:
    • Extend the current lease
    • Start a new lease with a new vehicle
    • Return the leased vehicle and leave with no further obligations.
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Buy a Ford

Should you choose to buy your vehicle outright, you'll have the freedom to drive it as much as you please, for as long as you please! If you'd prefer to have the same vehicle for many years and you're capable of repairing and maintaining it on your own, then a purchased vehicle can serve you well for decades with the proper care. Consider the following benefits:

  • No mileage limits
  • You can customize and alter your vehicle as you please, within the confines of the law
  • You never have to return your vehicle
  • When you're ready to move on, you can see it to whomever you wish
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The quick consumer guide below is from the United States Federal Reserve Board. The guide pertains to closed-end lease, the most common type of vehicle lease. With a closed-end lease, you may return the vehicle at the end of the lease term, pay any end-of-lease costs, and walk away.


OWNERSHIP

LEASING: You do not own the vehicle. You get to use it but must return it at the end of the lease unless you choose to buy it.

BUYING: You own the vehicle and get to keep it at the end of the financing term.

UP-FRONT COSTS

LEASING: Up-front costs may include the first month's payment, a refundable security deposit, a capitalized cost reduction (like a down payment), taxes, registration and other fees, and other charges.

BUYING: Up-front costs include the cash price or a down payment, taxes, registration and other fees, and other charges.

MONTHLY PAYMENTS

LEASING: Monthly lease payments are usually lower than monthly loan payments because you are paying only for the vehicle's depreciation during the lease term, plus rent charges (like interest), taxes, and fees.

BUYING: Monthly loan payments are usually higher than monthly lease payments because you are paying for the entire purchase price of the vehicle, plus interest and other finance charges, taxes, and fees.

EARLY TERMINATION

LEASING: You are responsible for any early termination charges if you end the lease early.

BUYING: You are responsible for any pay-off amount if you end the loan early.

VEHICLE RETURN

LEASING: You may return the vehicle at lease-end, pay any end-of-lease costs, and "walk away."

BUYING: You may have to sell or trade the vehicle when you decide you want a different vehicle.

FUTURE VALUE

LEASING: The lessor has the risk of the future market value of the vehicle.

BUYING: You have the risk of the vehicle's market value when you trade or sell it.

MILEAGE

LEASING: Most leases limit the number of miles you may drive (often 12,000-15,000 per year). You can negotiate a higher mileage limit and pay a higher monthly payment. You will likely have to pay charges for exceeding those limits if you return the vehicle.

BUYING: You may drive as many miles as you want, but higher mileage will lower the vehicle's trade-in or resale value.

EXCESSIVE WEAR

LEASING: Most leases limit wear to the vehicle during the lease term. You will likely have to pay extra charges for exceeding those limits if you return the vehicle.

BUYING: There are no limits or charges for excessive wear to the vehicle, but excessive wear will lower the vehicle's trade-in or resale value.

END OF TERM

LEASING: At the end of the lease (typically 2-4 years), you may have a new payment either to finance the purchase of the existing vehicle or to lease another vehicle.

BUYING: At the end of the loan term (typically 4-6 years), you have no further loan payments.

 

There's more to learn about Buy vs. Lease options available at Tom Holzer Ford. Visit our Ford dealership near Farmington, Livonia, West Bloomfield, Novi, and South Lyon for more information from our finance team. If you have any questions for us before you leave home, call us at (888) 414-9882; for everything else, we'll hope to see you in Farmington Hills in the near future.

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