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Finance vs Leasing

At Serra Ford Rochester Hills, we care deeply about giving our customers an enjoyable car-buying or -servicing experience.

If you’re in the market for a new car but aren’t sure if you should finance or lease you’ve come to the right place. There are advantages and disadvantages no matter what you choose so it’s really all about your preference.

Allow us at Serra Ford Rochester Hills to break down the differences between Ford financing vs Ford leasing so you can decide which route is best for you.

Upgrades vs Equity

One of the main disadvantages of leasing is that you're essentially renting your vehicle which means eventually you have to return it. Some people consider this a negative because it seems like you're making payments with nothing to show for them at the end of the lease.

On the other hand, leasing is convenient because you get to drive a new car every two or three years which means you’ll always have the latest features and technology.

When financing a car with a traditional auto loan you slowly begin to build equity. In the end all of the payments you made leave you with something valuable that you can call your own. The downside is that as the years pass by newer and more improved versions of your vehicle come out so you’ll be missing out on the latest model updates.

Payments

Working a monthly new car payment into your budget can be challenging. Lease payments are typically lower than loan payments making it a better option for someone on more of a budget. Even if the loan term is twice as long as the lease term, you're only paying for the depreciation of the car when leasing.

Flexibility

Leasing means you can’t customize your vehicle or get out of the lease terms early. Altering the vehicle while it’s in your possession will cost you extra when the lease term ends. When financing you can choose to get rid of the vehicle whenever you want as long as you pay the outstanding balance. Returning your lease before the term is up can actually end up costing you more.

Extra Costs

When you return your lease vehicle you may have a few stains on the back seat from the kids or a small dent from a parking lot encounter. These things will end up costing you extra since the car must be brought back in top condition. Leasing also comes with a mileage cap which means that you must agree to drive a limited number of miles per year. Going over the allotted mileage will also end up costing you.

In this case financing brings the advantage because you can do whatever you want to the vehicle since it’s yours to keep.

Ford Financing and Leasing in Rochester Hills

At Serra Ford Rochester Hills we believe in giving our customers the chance to drive the car of their dreams. So whether you choose to lease or finance, our expert staff is here to help you find a loan or lease terms that work for you no matter your credit situation. Visit our finance center to get started, check out our online payment calculator to estimate your monthly payments, or answer questions about your Ford lease end.

For more information about financing vs leasing don’t hesitate to contact us online today!

Although every reasonable effort has been made to ensure the accuracy of the information contained on this site, absolute accuracy cannot be guaranteed. This site, and all information and materials appearing on it, are presented to the user "as is" without warranty of any kind, either express or implied. All vehicles are subject to prior sale. Price does not include applicable tax, title, and license charges. ‡Vehicles shown at different locations are not currently in our inventory (Not in Stock) but can be made available to you at our location within a reasonable date from the time of your request, not to exceed one week.

Although every reasonable effort has been made to ensure the accuracy of the information contained on this site, absolute accuracy cannot be guaranteed. This site, and all information and materials appearing on it, are presented to the user "as is" without warranty of any kind, either express or implied. All vehicles are subject to prior sale. Price does not include applicable tax, title, plate fee, and $260.00 documentation fee. ‡Vehicles shown at different locations are not currently in our inventory (Not in Stock) but can be made available to you at our location within a reasonable date from the time of your request, not to exceed one week.