Buying vs. Leasing
Find the Right Way to Finance Your Next Ford
Not sure what the best way to pay for your next Ford? Comparing buying vs. leasing in Indianapolis doesn’t have to be a chore. Let the team at Ray Skillman Ford help you determine what works best for you.
When acquiring a new vehicle, it’s critical to explore buying vs. leasing in Indianapolis. Each option has its advantages depending on your needs and priorities. Buying means you own the vehicle outright after paying it off, while leasing means you make payments to use the vehicle for a fixed period of time. For Hoosier State drivers looking at Ford vehicles, here are some factors to consider when comparing buying vs. leasing in Indianapolis.
Keys to the Kingdom: Ownership
If you buy a new Ford, you own it after paying off any auto loan used to purchase it. If you lease, Ford Credit owns the vehicle, and you pay to use it during the lease term, typically two to three years. At the end of the lease, you return the vehicle unless you choose to buy it based on the terms of your lease contract.
Upfront Budget Impact
When buying, you usually pay a down payment and sales tax upfront. When leasing, you pay the first month’s payment, the acquisition fee, and other fees like the security deposit. Up-front costs tend to be lower when leasing compared to buying.
Value Proposition
The value of a vehicle usually drops the most in the first few years. When buying, the declining value comes out of your equity in the vehicle. When leasing, the dealership takes on the risk of the vehicle’s depreciation. Leasing avoids being “upside-down” on your auto loan if the vehicle value drops a lot.
End of the Road
At the end of an auto loan, you own the vehicle. At the end of a lease, you must return the vehicle unless you buy it. Buying at the end of a lease usually requires another down payment, and the interest rate may be higher than at the start of the lease.
Pros and Cons of Buying
Pros
- You own the vehicle
- No mileage limits
- Can keep long-term
- Vehicle longevity may save money
Cons
- Higher upfront costs
- More risk of depreciation loss
- Stuck with vehicle after paying off
- Responsible for all maintenance and repairs after warranties expire
Pros and Cons of Leasing
Pros
- Lower upfront costs
- Predictable payments
- Less risk of depreciation loss
- Option to get a new vehicle every few years
- Typically under warranty while under lease
Cons
- You don’t own the vehicle
- Mileage restrictions may apply
- Wear-and-tear charges possible
- Option to buy at the end often costs more
Buying vs. Leasing in Indianapolis with Ray Skillman Ford
Ray Skillman Ford offers both auto loans and leasing to help you acquire your next Ford vehicle. We even off a Lease Here Pay Here option for maximum flexibility. Our finance team will evaluate your budget and needs to help determine if buying or leasing makes more sense for your situation. With competitive rates and expert guidance, Ray Skillman Ford makes the financing experience easier than ever. Stop by to learn more or to get pre-approved for your next amazing Ford.