Buy vs Lease

At DriveBedford, we take great stride in making sure you have full understanding between the leasing and buying process. With that said, at DriveBedford we put together the top 10 questions folks ask when it comes to deciding on buying or leasing their next vehicle.
 Can I customize my vehicle?



 Buying
Since you are buying the vehicle, you have every right to do what you want to the vehicle when it comes to customizing. Do keep in mind, some customizing may void your warranty like lift kits or aftermarket wheels. Check with your Sales and Leasing Consultant for any questions on customizing.
 Leasing
When you lease your vehicle, you have some limitations to customization that you can make on your vehicle since you are technically not the owner. Check with your Sales and Leasing Consultant before making customization's to your vehicle.

 

 What are the options I have at the end of the  term agreement?



  
      Buying
After your loan matures, you own the vehicle outright. Some customers enjoy not having a payment. Do consider the cost of ownership of older vehicles. Keep in mind, you may have the option of  covering your vehicle with an extended warranty that will cover most parts, and electronics. This could save you a lot over the period of owning your vehicle after the loan matures.


      Leasing
At the end of the lease, although you do not own the vehicle, you still have options at the end of the lease. You can buy out the vehicle or, you can turn the vehicle back in to the leasing bank. With some vehicles, the manufactures will encourage you to turn your lease in early and encourage you to lease again with special promotions attached. Follow up with your Sales and Leasing Consultant on all the options that you have.

 
 How are my monthly payments calculated?



 Buying
When you are financing your vehicle, your payments are calculated off the total purchase price after rebates, fees, taxes etc... Payment values over a 36-84 month loan period is typically more than what a lease payment would be. 






Leasing
The manufacture does a predetermined value on your vehicle based on how many miles you sign up to drive and how long you lease it for. The payment is based on that portion of the vehicle that you use. The lease value in which your payment is determined on your vehicle is lower than an amount that would be traditionally if you were financing your vehicle. Depending on your credit history, equity if trading and lease programs, lease payments are commonly lower than loan payments. 

 
 What is my out of pocket cost up-front?


 Buying
Most customers like to put 10% up to 50% down. This lowers their payment and in some cases their interest rate. In most cases, this is not mandatory. Do keep in mind the banks may require a down payment due to negative equity and or credit history. 

 Leasing
In most cases, out of pocket money down is not required. This of course is all dependent of your equity status if trading, the type of vehicle your leasing, rebate amounts and credit history. Ask your Sales and Leasing Consultant what may be required at the time of the lease proposal. 
 
 

 Are there any mileage restrictions?










Buying
When you are buying a vehicle, there are no driving restrictions during and after the loan matures. 









     Leasing
In a lease agreement, you are limited to mileage that you can put on your vehicle. For Ford and Lincoln, your limits range from 10,500 to 19,500 a year in 1.500 increments. For Chrysler, Dodge, Jeep or Ram, your mileage terms are between 10,000 12,000 or 15,000 miles a year. You may have to pay mileage fees if you exceed the predetermined miles. Be sure to check with your Sales and Leasing Consultant on options if you think you may exceed the above mile limits. 


 
 Can I trade before the loan or lease ends?  



  
 Buying
You have the options to sell or trade your vehicle at anytime during the term of the loan. However, depending on the value of your vehicle at the time of trade in, it is best to see your Sales and Leasing Consultant on the best timing of when its best to trade due to the equity or negative equity of your vehicle.

 Leasing
If your needing to terminate your lease early, you may incur an early termination fee. We encourage you to visit your Sales and leasing consultant to discuss your best choices that you may have.



 
 Do I ever own the vehicle?    




 Buying
After the loan matures and you receive your title, only then you own the vehicle outright.





 Leasing
When your leasing a vehicle, you are not the owner of your leased vehicle during and after the lease ends. However, you do have the choice of buying the vehicle at a predetermined amount that was set by the manufacture at the beginning of the lease agreement. 
 
 
Whats the return policy of my vehicle? 
 





  
 Buying
When the loan matures, you have the choice of keeping, selling or trading the vehicle at anytime. 






 Leasing
At the end of the lease, you have a few options. 1. You can return the vehicle and walk away. 2. You can purchase the vehicle at the predetermined price that was set at the time of signing the lease. Or 3. Like most folks, you can go into another lease. Do check with your Sales and Leasing Consultant of early lease buyout programs that may be available from 3 up to 6 months early. 
 

 What will the value of my vehicle be at the end of the term?







 Buying
Depending on the current market value reports when the loan matures. Do keep in mind most vehicles depreciate over time.









 Leasing
If you choose at the end of the lease to turn in your vehicle and walk away, the leasing bank is responsible for the depreciated value that's been predetermined by them stated in the lease agreement. If you decide to purchase the vehicle at the end of the lease, the future value at which you can buy the vehicle for is stated in the lease agreement the day you signed the lease agreement.




 
 
What about wear and tear on the vehicle at the end of the term?


 Buying
You are not penalized by the lean holder at anytime of the loan due to wear and tear. Always keep in mind, excess wear and tear will decrease the value of the vehicle when you do to sell or trade it.  



 Leasing
The lease vehicle will go under an inspection to determine if there were any excess wear and tears. It is possible that you may incur excess wear and tear charges like major scratches, dents major stains etc...  Keep in mind, you have the option to purchase a coverage plan to cover most excess wear and tear items at the time of  signing the agreement. Your Sales and Leasing Consultant will go over coverage options with you. 
 

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