Leasing Vs. Buying: Which Is Right for You?

If you're considering getting a new car in the near future, you may wonder what the differences between leasing and buying are, and what is best for you. The decision of whether to lease or to buy outright involves a few different factors. Today, the Ford financing team here at Folsom Lake Ford will help you understand the benefits of both leasing and buying so you can make a well-informed selection.

The Basics

Leasing a car from a car dealership is akin to renting the vehicle for a few years. Most lease agreements have a time period of two to three years, where you make a down payment at the lease signing and pay a monthly amount. When the lease term ends, you will have the option to either return the vehicle, exchange the vehicle and sign another lease, or purchase the car at the buyout price.

Financing, on the other hand, involves taking out a loan with the intention to eventually own the car outright. Your down payment and car payments will likely be a bit higher than if you signed a lease, but once you've paid off your auto loan, you'll own your car completely.

Benefits of Leasing

Although you won't completely own the car, leasing a new Ford car has quite a few benefits. First, you have the chance to switch between different cars every few years when you lease. Another perk is that most leased vehicles come with a warranty.

Also, leasing has lower financial commitment than buying a new vehicle. When you lease a vehicle, you can expect to pay less upfront and have lower monthly payments and lower insurance costs. In the short term, leasing is a more affordable way to get a car.

Benefits of Buying

Buying a car can be a great investment if you're set on a particular vehicle. With so many great new and pre-owned Ford vehicles for sale at our dealership near Sacramento, CA, you may find one you'd like to own for the long haul. You can sell or value your trade at any time when you buy, earning back some of your initial investment.

Find Your Next Ford Car

Are you ready to meet your Ford vehicle match? Visit our dealership to see our inventory in person and test drive your top choices.