The Choice is Easy at Livermore Ford
No matter which new Ford you choose, you'll have to decide whether you will lease or finance your next vehicle. Some drivers are set on their decision of whether or not they'll buy or lease their next vehicle, while others aren't so sure. When it comes to leasing vs financing a car, both types of ownership have their own list of benefits and drawbacks. At Livermore Ford, we feature a renowned team of experts to help walk you through your shopping experience, and help you choose whether financing or leasing your next vehicle is right for you.
Let's take a look at the benefits and drawbacks of leasing vs financing a car, and be sure to come into Livermore Ford for the widest selection of new vehicles.
The Ins and Outs of Leasing
Leasing a car is almost like renting one. Leasing involves picking out the car that you like, and driving it for a period of 24 to 36 months before returning the vehicle and starting the process over again. Your monthly payments are generally based on the estimated depreciation of the vehicle, plus an interest rate that’s based on your credit score. Many drivers love leasing because it offers a lower monthly payment than it would be to finance the same vehicle. Additionally, they get to drive a new vehicle every few years and do not have to worry about repair costs, because the vehicle will likely be under its manufacturer's warranty for the entirety of their lease.
Leasing does, however, have drawbacks. Because leasing is based on predetermined depreciation, you'll have to keep the car and like the new condition, and adhere to strict mileage limits. Excess wear and tear or mileage would result in additional fees. Lastly, because you're essentially renting the car, you won't have any equity in the vehicle at the end of your lease.
The Full Scope on Financing
When you buy a car, you'll either pay cash for the total cost of the car or you'll get an auto loan. If you obtain an auto loan, the total cost of your purchase will be split into monthly payments (plus an interest rate). Once you're finished making all the payments, the vehicle is yours to keep. Many buyers prefer to finance because of the freedom that it brings; there are no mileage restrictions, no excess wear and tear fees, and they're free to modify the vehicle how they wish. Additionally, once the vehicle is paid off, drivers can enjoy their vehicle as long as they want with no monthly payments.
However, like leasing, financing a car also has its drawbacks. Financing a car often comes with a higher monthly payment because you're financing the entire purchase price of the car, plus taxes, fees, and interest. New cars also see steep depreciation within their first few years. This means that if you want to trade your vehicle in shortly after buying it, it may be worth less than what you owe on it. Lastly, once the warranty expires, you're on the hook for any costly repairs and maintenance intervals that you may encounter.
Trust Livermore Ford to Get You on the Road
At Livermore Ford, taking home your dream car is never difficult or stressful. We feature a wide selection of new Fords for you to choose from, as well as powerful tools to make your shopping experience transparent. We feature convenient car lease calculators as well as car finance calculators to help you make the most informed decision.
We even feature fantastic finance and car lease deals to ensure you drive home with a low monthly payment. Stop by Livermore Ford today, and discover why drivers and Livermore, CA, Dublin, CA, and Pleasanton, CA, come straight to us for all of their automotive needs.