Leasing vs. Financing
Deciding whether it’s better for you to finance or lease a vehicle depends on many factors. See the chart below to read about the main considerations.
|Ownership||You pay to use the vehicle during the term of the lease and must return it at lease-end unless you choose to purchase the vehicle.||You own the vehicle free and clear after your financial obligations are met. It will be yours to keep or trade-in on your next vehicle.|
|Payment||Monthly lease payments may be lower than comparible term monthly finance payments because you are paying for the portion of the vehicle’s value used during the lease term.||Monthly loan payments may be higher than comparible term monthly lease payments because you pay for the entire purchase price of the vehicle. Each payment helps build vehicle equity toward future trade-in. A bi-weekly payment schedule is also available if you prefer a lower payment every two weeks.|
|Customization||Customize your vehicle through your Dealer at the beginning of your lease with approved accessories.||Customize your vehicle at any time.|
|Kilometrage||You have a variety of kilometrage options to choose from at the beginning of your lease to meet your driving needs. You are responsible for any excess kilometrage charges unless you choose to purchase the vehicle.||You may drive as many kilometres as you want. Higher kilometrage will lower the vehicle’s trade-in or resale value.|
|Wear and Tear||A normal amount of wear and tear is covered. You are responsible for wear and tear in excess of normal limits unless you choose to purchase the vehicle.||There are no charges for vehicle wear and tear. Excessive wear will lower the vehicle’s trade-in or resale value.|
|End of Term|
At the end of the lease, you have the flexibility to either purchase your leased vehicle at a predetermined price or return it.
|At the end of the loan, you own the vehicle. It is yours to keep or trade-in on your next vehicle.|
Finance and Lease Services
Ford Credit is a worldwide leader in automotive financing, and our dealership offers a variety of Ford Credit’s lending services. There are many reasons to choose Ford Credit, but probably the biggest one is our direct connection to Ford Motor Company of Canada, Limited. We’re experts in automotive financing, and we work directly with Ford to create the programs that benefit our customers the most.
Benefits of Financing
Financing has advantages and provides unique benefits:
- Variety of popular terms are available
- No kilometre limitations or excess wear and tear charges
- Customize your vehicle at any time the way you like
- Each payment helps build vehicle equity toward future trade-in
Once you understand the basics of leasing, you’ll see that it’s just as simple as traditional financing. There are some basic differences between leasing and financing.
Benefits of Leasing
Leasing may allow you to make lower payments compared to comparable term financing. You also have the flexibility of three great options at lease-end:
- Purchase or lease a new Ford or Lincoln vehicle
- Purchase your current leased vehicle at a predetermined price and keep it, or
- Return your leased vehicle (after fulfilling your lease-end obligations) and walk away
Leasing also has its advantages and unique benefits:
- Variety of lease terms designed to meet your needs
- Kilometre options
- Ability to customize your vehicle with approved accessories at the start of your lease contract
When considering leasing also consider WearCare, an optional product available at the start of your lease contract which can waive considerable lease-end excess wear and tear charges.
|However far you plan to travel; we can make your lease a perfect fit. We offer three lease kilometre options:|
|Ultra Low Kilometre Lease* (16,000 kilometres per year)|
|Low Kilometre Lease (20,000 kilometres per year)|
|Standard Kilometre Lease (25,000 kilometres per year)|
|Choose the option that best suits your traveling needs.|
Need even more kilometres? Plan ahead and build in prepaid extra kilometres at the start of your lease contract for less cost per kilometre than what would be charged at lease-end.** If you do not use your prepaid kilometres, you will be reimbursed.***
GAP Protection Benefit
Guaranteed Auto Protection (GAP) may waive the difference – or gap – between your insurance pay-off and your outstanding lease balance in the event your leased vehicle is stolen or declared a total loss. This unique feature is included at no extra charge with your Red Carpet Lease. Provided you have the insurance required by your Lease Agreement. Certain restrictions may apply.
Advance Payment Program (APP) Option
The Advance Payment Program permits you to prepay all monthly Red Carpet Lease payments up front in one convenient payment. At lease-end, a final invoice is generated for any unpaid excess kilometrage, Excess Wear and Tear charges and other miscellaneous charges, if applicable.
* Only available on certain vehicles, see Dealer for details.
** Additional kilometrage can be added only when the 25,000 kilometre per year option is chosen at lease inception.
*** Lessees who purchase extra kilometres at the start of their lease contract will be reimbursed for unused prepaid kilometres at the same rate charged per additional kilometre (excluding tax) and provided the refund is greater than $1 and do not exercise their purchase option at lease-end.