There are countless challenges that you can expect to come across when deciding to buy a new car. Sure, it’s relatively easy to decide on your dream make and model, but all-too-often there’s a disparity between ‘what you want’ and ‘what you can afford.’ That said, there is an option worth considering by anyone interested in an aspirational vehicle that might be slightly outside of their price range. More so, it’s an option that’s also available to prospective car buyers with an eye for economy, who simply like the idea of driving around in a newer model vehicle. Of course, we’re talking about lease programs, as offered by nearly every automaker. Maybe you’re considering a new Ford SUV, be it a fully-loaded 2018 Expedition or the far more accessibly-priced Escape crossover. By learning more about the Ford lease deals that are available to you, you can begin to see why so many car buyers are choosing to lease rather than own. With that in mind, let’s take a closer look at the pros and cons of leasing your next new vehicle.
There are countless arguments in favor of leasing, which simply require you to determine if they align with your own personal preferences.
- More Car For Your Money – One of the most compelling benefits of leasing is that a vehicle which might otherwise be outside your budget can become affordable. This is due to the fact that leasing only requires you to pay against the principal, whereas a financed vehicle applies interest. The result can be a significantly lower monthly payment for those who choose to lease, allowing them to drive a nicer vehicle for less money on a monthly basis.
- Little of No Down-Payment – Lease programs differ based on automaker, geography, and dealership but in most cases, qualified lessees can initiate a lease with less money down. For people who choose to buy a vehicle, down-payment can be burdensome as it’s their only means of making sure that they’re not ‘upside down’ in their loan. Lessees need not be concerned about such things.
- Peak Years – In most cases, the first few years of a vehicle’s life are it’s most ‘incident-free.’ That said, a 3-Year lease program empowers you to enjoy those peak years of a vehicle’s operation.
- Warranty – And if there are any issues, repair costs will likely be covered by the vehicle’s factory warranty, meaning little (if any) out of pocket expense for you.
- Ease of Trade-In – If one of the best arguments in favor of a lease is the ability to drive a nicer vehicle for less money than it’s further bolstered by the option of trading it in at the end of every lease agreement. This means that you’re always driving a relatively new vehicle, which certainly helps to keep the joy in driving.
Obviously, leasing isn’t the perfect fit for everyone. After all, if it was, everyone would be doing it, right? That said, what are some of the arguments against leasing (as well as those in favor of buying)?
- Absence of Ownership – While owning a vehicle certainly comes with its fair share of burdens, there are certain freedoms to be enjoyed, as well. From the ability to modify your vehicle, to less focus being placed on maintaining a pristine condition, ownership has its privileges. With a lease, you don’t have such freedom.
- Wear-and-Tear – As mentioned above, you don’t own a leased car and are held responsible for any damage, or even light wear-and-tear that could decrease the vehicle’s overall value. This can result in surcharges, which can easily add up.
- Controlled Mileage – Averaging 12,000 miles per year, a lease program limits the mileage that you can incur on the vehicle unless you choose to pre-purchase additional miles. That said, failure to meet the mileage requirements can result in substantial surcharges.
- Overall Cost – While monthly payments for a leased vehicle may be lower, you’re actually paying more across the life of your relationship with that vehicle. That’s because your relationship is shorter than that of a financed vehicle which, once paid off, enjoys a number of years of payment-free ownership.
- Early Termination – Should you choose to get out of your lease before it ends, you can expect significant penalties to be levied against you.
Is a Lease Right For You?
The answer to that question comes down to your priorities, as well as the unique demands of both your lifestyle and your budget. There is simply no arguing that ownership has its privileges, but it can also present its fair share of burden. By leasing a vehicle, you absolve yourself of those burdens, manage to save a few dollars here and there, and gain the enjoyment of finding yourself behind the wheel of a new model year offering. Try all you want, but it’s hard to argue with that.
Here are some closing thoughts for you to consider as well.