Financing vs Leasing

What’s the difference between financing and leasing a vehicle at Mainland Ford? The answer boils down to two factors: vehicle use and type of ownership.

When you lease, you are borrowing a car for a set period of time at an established monthly fee. At the end of the lease, you return the vehicle to Mainland Ford for inspection. At this point, you may either return the car in, resolving any costs incurred from wear and tear and excessive mileage, or you may purchase the vehicle.
Leasing can generally mean lower monthly payments while allowing you to drive a brand new car every two to four years. That means a newer car for less money each month. Also, leases are generally paired with manufacturer warranties that protect you against unforeseen repair costs.

When you finance, you pay a lender a pre-set amount during a finite period. While down payments and monthly payments may be higher compared to leases, you have the option to pay off your loan early. Vehicle financing allows you to enjoy the pride of ownership and is more cost effective long term.

Which Option Is Right for Me?

That answer is exclusively up to you! Our Financial Services experts are here to help you find which option will be best for your preferences, budget, and lifestyle, but there are a handful of important hints to consider.

1. Is having a newer vehicle every two to four years with warranty coverage more important than the long-term costs associated with leasing?
2. Are long-term cost savings more important than the monthly investment?
3. Is vehicle ownership more important than the short-term savings?

Financing and Leasing Differences

With financing, the loan includes the total cost of the vehicle, and there is no requirement or cap on how many kilometers (kms) you drive. The loan has an interest rate that is determined by the financial institution, and the payments include all taxes and fees. The monthly or bi-weekly payments typically start the next month after the contract has been signed.

With leasing, the payments are determined by the cost of the vehicle, the number of years of the lease and the estimated or set kilometers driven. The interest rate is determined by the leasing company and the monthly or bi-weekly payments include taxes and any associated leasing fees. The first monthly or bi-weekly payment is required at the time of delivery.