Buy vs Lease

At Bedford Ford Lincoln, we take great stride in making sure you have full understanding between the leasing and buying process. With that said, at Bedford Ford Lincoln we put together the top 10 questions folks ask when it comes to deciding on buying or leasing their next vehicle.
 What are my out of pocket expenses up-front?


  Buying
Most customers like to put from 10% up to 50% down. This lowers their payment and in some cases their interest rate also. In most cases, this is not mandatory. Do keep in mind, banks may require a down payment due to negative equity on your vehicle your trading and or credit history.


 
  Leasing
In most cases, out of pocket money down is not required from Ford and Lincoln. This of course is all dependent of your equity status if trading, the type of vehicle your leasing, rebate amounts and or credit history. Ask your Sales and Leasing Consultant what may be required from Ford and Lincoln at the time of the Ford and Lincoln lease proposal. 

 
 Can I customize my vehicle?



  Buying
Since you are buying the vehicle, you can customize your vehicle at anytime during and after the lean matures with no penalty from the lender. Do keep in mind, some customizing may void your warranty like lift kits or aftermarket wheels. Check with your Sales and Leasing Consultant if any questions on customizing your vehicle.
  Leasing
When you lease a new Ford or Lincoln vehicle, you have limitations to customization that you can make on the vehicle since you are technically not the owner. Check with your Sales and Leasing Consultant before making customization's to the vehicle.


 


 At anytime are there any mileage restrictions?



Buying
When you are buying a vehicle, at anytime during or after the loan matures, there are no mileage limits.









 Leasing
In a Ford and Lincoln lease agreement, you are limited to mileage that you can put on the vehicle. For Ford and Lincoln, your limits range from 10,500 to 19,500 a year in 1.500 mile increments. If you feel that you may be driving more than 19,500 miles a year, you may have the option of buying more miles. You may have to pay mileage fees if you exceed the predetermined miles. Be sure to check with your Ford and Lincoln Sales and Leasing Consultant on options if you think you may exceed the above mile limits set at the time of signing the agreement.

 Can I trade the vehicle before the loan or lease ends?

  Buying
You have the options to sell or trade your vehicle at anytime during the term of the loan. Do keep in mind, depending on the value of your vehicle at the time of trade in, it is best to see your Ford and Lincoln Sales and Leasing Consultant on the best timing of when its best to trade due to the equity or negative equity of your vehicle.

  Leasing
If your needing to terminate your Ford and Lincoln lease early, you may incur an early termination fees. We encourage you to visit your Ford and Lincoln Sales and Leasing consultant to discuss your best choices that you have.



 

 
At the end of the term agreement, what are my options?




 Buying
After your loan matures, you own the vehicle outright. Some customers enjoy not having a payment and seldom ever trade. Do consider the cost of ownership of older vehicles with high miles and no warranties. Do keep in mind, almost every vehicle you have an option of  covering your vehicle with an extended warranty that will cover most parts, and electronics. This could save you a lot over the period of owning your vehicle after loan matures. 
   Leasing
At the end of the Ford or Lincoln lease, although you do not own the vehicle, you still have options at the end of the term. You can buy out the vehicle. or turn the vehicle back in to the Ford leasing bank. With some vehicles, Ford will encourage you to turn your lease in early and encourage you to lease again with special promotions attached. Follow up with your Ford and Lincoln Sales and Leasing Consultant on all the options that you have.

 
 How are my monthly payments calculated?

  Buying
When you are financing your vehicle, your payments are calculated off the total purchase price after rebates, fees, taxes etc... Payment values and interest rates over a 36-84 month loan period is typically more than what a lease payment would be. 

 Leasing
The Ford and Lincoln lease value in which your payment is determined on the vehicle is lower than an amount that would be traditionally if you were financing the vehicle. Depending on your credit history, equity if trading and lease programs, Ford and Lincoln lease payments are commonly lower than loan payments. 
 
 What is the return policy of the vehicle?



  Buying
When the loan matures, you have the choice of keeping, selling or trading the vehicle at anytime. 








  Leasing
At the end of the Ford or Lincoln lease, you have a few options. You can return the Ford or Lincoln and walk away. Or you can purchase the vehicle at the predetermined price that was set at the time of signing the Ford or Lincoln lease. Or like most folks, you can go into another Ford or Lincoln lease. Do check with your Ford and Lincoln Sales and Leasing Consultant of early lease buyout programs that may be available up to 6 months early. 
 
 What about wear and tear on the vehicle at the end of the term?

  Buying
You are not penalized by the lean holder at anytime during the loan due to wear and tear. Always keep in mind, excess wear and tear will decrease the value of the vehicle when you do to sell or trade it.  



  Leasing
It is possible that you may incur excess wear and tear charges from Ford. The lease vehicle will go under an inspection by Ford to determine if there were any excess wear and tear. You also have the option to purchase a coverage plan to cover most excess wear and tear items. Ask your Ford and Lincoln Sales and Leasing Consultant for more information. 
 
 
Lease or loan, do I ever own the vehicle?


  Buying
After the loan matures and you receive your title from the lender, you own the vehicle outright.





  Leasing
When your leasing a Ford or Lincoln vehicle, you are not the owner of the leased vehicle during and after the lease ends. However, you do have the choice of buying the Ford or Lincoln vehicle at a predetermined amount that was set by Ford at the beginning of the Ford or Lincoln lease agreement. 

 
 What will the value of the vehicle be at the end of the term?


  Buying
Depending on the current market value reports when the loan matures keeping in mind most vehicles do depreciate over time.







  Leasing
If you choose at the end of the Ford or Lincoln lease to turn in your vehicle and walk away, Ford is responsible for the depreciated value that's been predetermined by them stated at the starting of the lease agreement. If you decide to purchase the Ford or Lincoln at the end of the lease, the future value at which you can buy the vehicle for is stated in the Ford lease agreement the day the lease began. 

 

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