Leasing Vs Buying a New Ford
Buying vs. Leasing a New Ford in Livonia, Michigan
When leasing your new Ford vehicle, we want to ensure a quick and effortless process. Discover all there is to know about leasing a new Ford and our current lease deals and Specials in the Metro Detroit area. To help you make an informed decision about your next vehicle purchase, we have provided answers to common automotive purchasing questions.
Common Leasing Terminology
- Due at Signing - This is the amount of money you need to pay to drive your leased Ford off the lot. This can include the first month's payment, security deposit, and other basic fees.
- Acquisition Fee - This is the amount charged by the bank your lease is through- While this cost varies, our Ford dealership will work to keep it competitive.
- Mileage Allowance - Ford lease agreements come with an allotted number of miles per year that you can drive. This number can vary, and we will walk you through the right plan for you.
- MSRP - MSRP is short for Manufacturer's Suggested Retail Price- This is the cost of your new vehicle before any discount or sale.
When Does it Make Sense to Lease?
Leasing differs from financing in a few ways. The first is that you are paying for your vehicle as you use it. When you establish your lease, you will have a specific range of miles you agree on within that lease year. If you are working from home, you might not drive as often as the average commuter. So, leasing could save you a fair amount of money while not impacting your driving needs.
FinancingWho Owns It
Whether you pay for the car with cash or finance it and make monthly payments, it's yours. Of course, if you're financing it, you'll have to meet the obligations the lender requires, like a certain down payment amount and timely monthly payments. If you don't, they have the right to repossess it.Up-Front Costs
If you're financing it, the bank will likely request a down payment. The amount of the down payment is based on the lender's requirements and your credit score. You can also trade in another vehicle and use any equity towards your down payment.Future Value
Your vehicle's value depends on how well you maintain it. Regularly scheduled maintenance by a factory-authorized facility is essential in keeping the car.End of Payments
Once you've paid off what you owe on your contract, that's it. Your vehicle is 100% yours. The lending institution will send you a Lien Release as proof that the vehicle is paid off.
LeasingWho Owns It
You do not own the car when you lease. You're paying for the use of the vehicle, but the finance institution you leased it through owns it- This is why you pay less per month in a lease than if you were to buy the car.Up-front Costs
Leases often do not require any down payment. All you usually have to pay is the first month's payment, a security deposit, the acquisition fee, and other fees and taxes. If you want to lower your monthly payments, you can always pay more upfront.Future Value
In most leases, you don't end up owning the vehicle. Therefore, you don't end up selling it. That's the financial institution's job. However, you may have mileage limits and wear and tear guidelines that, if you exceed them, could cost you extra money when you turn your vehicle back in.End of Payments
Most people return the vehicle at the end of the lease term. Others like to purchase it during their lease or at the end. Some want to trade it in before their lease is over. Depending on what you are looking for, we will make sure you have your lease set up the way you want it.
Best Cars to Lease
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. Review the lease ratings to see which cars retain their value. Also, be sure to check our latest Ford lease deals to lock in low monthly payments on your new Ford lease.