Buy vs Lease
Buying vs. Leasing: What's the Best Option for You?
One of the questions we're asked most often is in reference to whether the best option is to buy or lease a vehicle. So, if you recently decided it's time to get back into the car shopping market, you may be wondering the same thing. Spoiler alert: there is no correct answer for everyone, it depends on the individual.
Here at All American Ford in Old Bridge, our goals are simple: to do business the way you want to do business and to save you time and money. Everyone is different in their preferences and situations so we want to work with you to find the best options for your lifestyle.
While the below is helpful information as an overview of topics, when you come in and sit down with one of our Sales Consultants, we'll make sure you are really getting the best vehicle and deal for you.
Curious about how to get started? Take our quiz below to get a better understanding of what might work best for you, read on for more information about leasing versus buying, or contact us to begin.
Should you lease or buy?
You're more likely to buy
- When you lease a car, you are typically capped at 15,000 miles a year. Additional mileage can cost you up to 35 cents per mile. And that can really add up.
- If you like to personalize a car, this investment can be lost on a leased car.
- If you like the idea of ownership, you are less likely to be happy with the lease option.
- If you like the feeling of accomplishment that paying off a large purchase brings and should consider that when you lease a car, the payment ends only when you return the car.
- If the car you presently own is over 3 years old you are more likely a buyer. While not always true, you can usually drive for less if you're willing to buy and drive for at least 3 years.
- If you don't mind doing your own car repairs, you probably don't mind driving a car after the warranty expires.
You're more likely to lease
- Lease arrangements usually involve a 15,000 miles-per-year cap and charge for extra miles. If you drive very little, you may be a candidate for a luxury lease.
- When you negotiate a 24 or 36-month lease, you can be sure you'll always be driving a new vehicle.
- Although you need to maintain and repair your leased vehicle just as you would an owned vehicle, because you typically lease for 2 to 3 years, the car is normally under warranty.
- Many people prefer to drive a vehicle that is priced above their means and leasing provides the solution.
- If you don't mind not owning the car, you are free to enjoy the benefits of leasing like low monthly payments and a low down payment.
- If you own the company, and you use your car for business, check with your tax advisor. You may be able to deduct your auto expenses, including your monthly lease payment. And if the company you work for gives you a monthly car allowance, you may want to lease since you'll be able to drive a nicer car for a lower monthly payment.
Leasing Your Next Vehicle
Leasing payments
One of the perks of leasing your next vehicle is that the lease payments are generally lower than similar term monthly finance payments. This is because you're paying for a portion of the vehicle's value used during the lease term instead of the entire purchase of the vehicle. Normally, leasing requires little-to-no money down at inception, whereas buying will require a greater down payment to achieve the same low monthly payment that you can have on a lease.
Wear and tear
Another great thing about leasing a vehicle is that a normal amount of wear and tear is covered, and you always have the option to give it back at lease end. If for some reason the vehicle's wear and tear exceeds normal limits or you happen to go over the mileage allotted, you will be responsible for the excess-unless you choose to buy the vehicle. However, the dealership can assist with these lease end costs.
Customizing your lease
If you choose to lease, another great option available to you is the ability to get to know your vehicle before choosing whether or not to purchase it. This allows you to customize your vehicle and upgrade accessories to your liking if and when you decide to purchase the vehicle you're leasing.
Loving that new car smell
With leasing, you're generally getting a new vehicle every 2-4 years. The benefits are that you always get to be in a new model and get the very latest in options and technology in your vehicles. Each new model year enhances from the previous ranging from gas mileage to noise reduction to handling, so you'll always have the very best quality ride.
Mileage options
When leasing a vehicle, you'll have a variety of mileage options to choose from and can customize your mileage to meet driving needs. When trying to decide what mileage options are best for you, it's beneficial to speak with one of our Leasing Sales Consultants to help pinpoint what you're looking for and recommend the best option available for your needs.
Living it up
Because of the (generally) lower monthly payments, leasing provides the opportunity to drive a more expensive, nicer or loaded vehicle that might otherwise have been out of your budget range. That could be the difference between a base vehicle model and a fully loaded Fusion AWD with MyFord Touch Technology, heated & cooled seats, heated steering wheel, moon roof, leather, and much more. Ford offers some of the best 'extras' and options out there.
Owning your vehicle at lease end
Once the term is up, you can choose to either return the vehicle or purchase it. You will generally be covered under a 'bumper to bumper' warranty with a lease, whereas buying will require you to purchase an extended warranty plan at an additional cost to cover the vehicle until it is completely paid off or traded in. This makes leasing a vehicle less costly overall.
Buying Your Next Vehicle
Purchasing payments
Something you may want to consider when buying your next vehicle is that the payments are generally higher than similar term monthly lease payments because you're paying for the entire purchase price of the vehicle. However, it may be the better option for someone who likes the idea of paying your vehicle off completely.
Wear and tear
With a vehicle you decide to purchase, there's no charge on wear and tear. You're able to do whatever you'd like with no additional financial obligations through the dealership. It is important to note that excessive wear could lower the vehicle's resale or trade-in value if that's something you may be interested in down the road.
Customizing your vehicle
When you're financing or own your vehicle, a perk is that you can upgrade or add accessories at any point in time. it's yours to upgrade however you want.
Reaching the end of your payments
When you're finished paying off your loan, you own your vehicle. It's yours to do with as you choose, and down the line, you can even look into resale or trading it in.
Mileage options
With a purchased vehicle, you're able to drive as many miles as you want. Keep in mind, however, the higher mileage a vehicle accrues the less it may be worth during resale or trade-in.
Owning your vehicle
When purchasing your vehicle, one of the greatest perks is you own the vehicle free and clear after financial obligations are fulfilled. If you decide that purchasing a vehicle is the best choice for you, there are several financing options available. If you choose to buy, the vehicle is yours, and you can decide to keep it or trade it in when it's time to look into another vehicle.
What's best for you?
Everyone has different needs, and what's best for one person may be completely different for you. We hope the information above helps and acts as a thought starter. Truth is though, until you sit down with one of our trained professional Sales Consultants to dig deeper into each advantage and disadvantage based on your personal situation, there is no way of truly knowing which one is best for you or of being able to provide a price comparison. There are too many different rebates and programs out there that you could qualify for which would make a big impact on the price. We will help you find the most amount of savings possible.
Our pledge is to help you weed through all of this and find the vehicle that makes the most sense for you, at the best price and value. So give us a call or text, email or submit a form and we'll reach out to you to begin this exciting journey.
All American Ford in Old Bridge
3698 Route 9 South
Old Bridge, NJ, 08857
Hours & Directions
Sales - 848-458-5352