Should You Buy or Lease a Ford in Today’s Market?

Buying a new Ford usually costs more per month, but once you’ve paid off the loan, you own the car. Leasing typically means lower monthly payments, which allows you to afford a more expensive car within your budget. Yet leasing is essentially a rental, and you could end up in a cycle of always paying for a vehicle. We asked our finance experts to review the pros and cons of buying and leasing to help you decide which option is right for you.

Pros of Buying a Ford in Spokane

Here are some benefits of buying a Ford in Spokane:

Building Equity

One major advantage of buying a car over leasing is that it helps you build equity in the vehicle. A portion of your monthly payment goes toward paying the interest, and the rest goes toward paying the principal. Higher interest rates increase your monthly payment, so it’s important to shop for the best interest rate.

Once you’ve paid off the loan, the car is yours. You can continue driving the vehicle without a monthly payment or sell it and use the money however you like.

Modifications Allowed

Unlike a lease, you can modify your new car when you buy it with cash or a car loan. You can install a lift kit on your new F-150 Platinum and enjoy off-road adventures in Mount Spokane State Park. Or you can add performance parts to your Mustang for more spirited driving on Spokane’s winding back roads.

Ownership Flexibility

When you buy a car, you aren’t locked into terms like you are with a lease. Your loan may last three to seven years, but you can sell the car at any time. This flexibility gives you the option of switching vehicles. If you find your new Ford Explorer isn’t big enough for your growing family, you can upgrade to the Ford Expedition. With a lease, you’ll pay an early termination fee for returning the vehicle before the end of the term.

Important Buying Considerations

There are a few important factors to consider when buying a vehicle. You’ll have a higher monthly payment compared to leasing the same vehicle. We recommend you get pre-approved online to know your budget. You’ll also be responsible for maintenance and repair costs. The warranty will cover you for the first few years, but eventually, it will expire.

As the owner of the vehicle, you absorb the depreciation expense, which can be as much as 20% in the first year. This may not affect you if you plan on owning the car for the long term, but in the near term, you could end up upside down on your vehicle loan. Getting upside down means you owe more than the car is worth.

The consequences can be costly if you’re involved in an accident and your new car is totaled. For instance, if you owe $35,000 on your loan and your car is worth $25,000, the insurance company will write a check to your lender for $25,000, and your lender will look to you for the $10,000 difference.

You can offset these cons by purchasing extended warranties and GAP insurance. We recommend you speak with our finance department about how to build these benefits into your purchase price.

Pros of Leasing a Ford in Spokane

When you lease a vehicle, you’re paying monthly to drive a new car for a set number of years. There are several pros of leasing a Ford, including:

Lower Monthly Payments

Leasing typically costs hundreds of dollars less per month than a car loan for the same vehicle. That could mean the difference between buying the mid-range Bronco Outer Banks or the top-tier Bronco Raptor.

Worry-Free Driving

New cars have fewer maintenance issues. Since the average lease runs three years, you may never have to spend a dime on unscheduled maintenance. Plus, your leased Ford will have all the warranty protection should something go wrong.

Tax Benefits for Businesses

If you’re a Spokane small business owner, leasing could save you money come tax time. Most businesses can claim a portion of their lease expenses.

Cutting-Edge Tech

Leasing a new car every few years will have you driving the newest vehicle with the latest innovations. If you love that new car smell and all the latest features, leasing may be for you.

Important Leasing Considerations

Leasing a car comes with different financial factors to consider. Your lease will have a mileage restriction, which is a set number of miles you are allowed to drive. If you drive more, you will pay for every mile over your allotment when you turn in your lease, which could cost you hundreds of dollars or more.

When you turn in your leased vehicle, you are responsible for any repairs not deemed normal wear and tear. That little fender bender may have only left a small ding, but you’ll still have to pay to repair it at the end of the lease. You also can’t modify a leased vehicle.

Market Factors to Consider Right Now

When buying vs. leasing a Ford in today’s market, it’s important to consider interest rates. At Wendle Ford, we have competitive interest rates on new vehicles. We anticipate rates will continue to drop, but leasing could save you more in the short term.

Tax rates continue to rise in Spokane. A recent vote in Spokane Valley increased the sales tax, which adds to the purchase price of your new car.

Making the Right Ford Financing Choice

Your financial goals will determine whether to lease or buy a Ford. At Wendle Ford, we pride ourselves on providing transparent pricing and a hassle-free buying experience. If you’re interested in upgrading your Spokane commute with a new vehicle, we recommend browsing our online inventory to find the perfect match. Visit our North Division Street showroom to schedule a test drive. Our helpful finance team is ready to answer your questions and help you find the right loan or lease to suit your financial goals.

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