Leasing vs. Financing

Leasing vs. Financing a New Vehicle at Stanley Ford Sweetwater

If you want to get behind the wheel of a new Ford car, truck, or SUV, you have two methods available to get a new vehicle. You can do the usual financing option to get a loan for a new vehicle, or another possibility is to lease. If you live in Sweetwater, Abilene, or Roscoe, you can check out our inventory of new vehicles that are available for sale or lease at Stanley Ford Sweetwater.

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Auto Financing

Financing is the option most people are familiar with when you secure a loan from a credit union, bank, or other lending institution to get a vehicle. Some advantages to this method are when you are done with the term of your loan, usually 5-7 years, and you pay off the vehicle, it belongs to you and becomes an asset. Many loans have flexible terms, short term vs long term repayment plans in which you make monthly payments of a certain amount.  

Auto Leasing

When you lease, you agree to pay a certain amount each month as a long-term rental to use the vehicle you selected. It gets you a vehicle to use for about 2-3 years and for that time frame the vehicle is yours to drive. With the leasing option, you get to drive a higher-end vehicle that you may not be able to afford otherwise, equipped with advanced technological features. However, at the end of your lease term, you must return the vehicle, whereas when you finance, the vehicle is your to do with as you please.  There are some other advantages as well outlined below.

Pros to Leasing

• Lease may include free scheduled maintenance, like oil changes.
• Lease allows for lower monthly payments.
• You’ll be driving a better equipped higher priced vehicle.
• The driver-assist features are included in the lease price.
• Driving the vehicle when it has the least number of problems.
• Manufacturer’s warranties are still intact.
• If it is for a business, there may be tax breaks.
• Don’t have to worry about depreciation values or trade-in hassles when selling or trading in.

Cons to Leasing

• The vehicle is not yours, so you are unable to have modifications done.
• Expendables, like tires and certain other parts still cost you money and if the vehicle is higher value that means larger prices for parts.
• You will pay excessive fees if you don’t like the vehicle and want to return it early.
• If you keep it until your leasing term expires, there may be other additional fees at the end of the term.
• Leasing a vehicle one after the other means endless payments.
• You must maintain the vehicle at high standards or pay additional fees for excessive wear and tear.
• You are limited on mileage, if you exceed it, you will pay mileage overage fees.
• With normal depreciation, you will likely end up having paid more than you would a purchase.