Buying vs. Leasing at Terry’s Ford
When you come to our Manteno and Bourbonnais-area Ford dealership looking at new cars, you have two options: buy or lease. Buying a car means you must either pay for the car in full, or finance and make monthly payments until the vehicle is paid off. After that, the car is completely yours for however long you want to keep it. With leasing, you’re essentially renting the car for a set period, usually for three years. Both have their own advantages and disadvantages.
Advantages of Buying a New Ford
- Modify Your Car – When you own a vehicle, you can do what you want with it. If you want to add a rear spoiler or body kit to make your car into a sports car or add on features you skipped-out on like a rear entertainment system or better stereo system, you can.
- Economical in the Long Run – If you’re the kind of driver who likes to hang on to a car as long as you can, it makes more sense to own your vehicle, since there will be a period where you no longer make monthly payments. You’ll also have equity in your vehicle to use toward the purchase of your next car.
- Flexibility – When you own your car, you’ll be able to drive as much as you want and sell your car when you want. Drivers who are always in their cars will likely want to choose buying over leasing.
Disadvantages of Buying a New Ford
- Higher Payments – Initially, buying a car is going to seem more expensive than leasing. You’ll have to put up a higher down payment and the monthly payments will be bigger. If you’re right out of school or just don’t have a lot of money built up, car ownership might not be for you right now.
- Maintenance – While early repairs will be covered by the new car warranty, later on you’ll have to pay all maintenance out of pocket. If you plan on keeping your car a long time, there are going to be a lot of parts you’ll end up replacing.
- Depreciation – Unlike buying a home or an expensive piece of art that could go up in value, the value of a car will generally go down as it ages and is subjected to wear and tear.
- Selling Your Car – Terry’s Ford is happy to buy your trade-in, but other Bourbonnais drivers choose to sell their car privately when they’re ready for a new one. Regardless, it’s your responsibility to get rid of your car.
Advantages of Leasing a New Ford
- Costs Less to Drive – When you’re leasing, you’re not paying for the entire value of the car, but rather a small part. This means your monthly payments are going to be less than if you were buying the same car.
- Drive a Nicer Car – Since your costs will be less, you can actually afford to drive a nicer car when you lease. This is great if you love the feel of a performance car or if you like lots of gadgets, but can’t necessarily afford to own your dream car just yet.
- Drive a New Car More Often – There are a lot of Bourbonnais drivers who love always having a new car with the latest technology. When you buy car, it makes sense to hold on to it for as long as possible.
- Low Maintenance Costs – When you lease, you only take care of basic maintenance like oil changes. All major repairs should be covered by the car’s warranty.
Disadvantages of Leasing a New Ford
- Mileage Caps – Leasing has yearly mileage restrictions, so you have to keep an eye on the odometer if you don’t want to pay overages.
- No Flexibility – You can’t get out of a lease without paying a penalty fee. If your driving needs are going to change in the near future, getting into a lease may not be wise. You also don’t have the option of modifying your car in any way.
- More Expensive in the Long Run – Since you don’t own the car, there’s no value you can apply towards your next lease or car purchase. In the end, you’ll pay a lot more if you just continue to lease. You do generally have the option to buy at the end of the lease, though.
Test Drive a New Car at Terry’s Ford
If you’re still not sure whether you’d like to buy or lease, Terry’s Ford can help. We can show you all of the new models we have in stock and review the costs of buying vs. leasing a specific model. Our dealership is located at 363 N. Harlem Ave. in Peotone, a short drive from Bourbonnais and Manteno. Come to Terry’s Ford and let us take you out for a test drive!