What is the Difference Between Leasing and Financing a Car?
There are a number of things to consider when you are deciding if you should lease or finance a car or truck. A Ford lease gives lower monthly payments over financing for a comparable vehicle, while financing gives you the benefits of owning a vehicle for yourself.
Feel free to talk to any of our finance professionals if you have further questions on leasing vs. financing.
If you want to lease a car in Wallaceburg, Dresden and surrounding areas, then get pre-approved for a low percent car lease with Progressive Ford’s online car credit application.
So, what is the difference between financing and leasing?
| Leasing | Financing | |
| Ownership Options | You only pay for your vehicle during the term of the lease and must return it at lease end, unless you choose to purchase it. | Once your financing obligations are met, you are the owner of your vehicle. |
| Monthly Payments | Monthly leasing payments are generally lower than monthly financing payments on a comparable vehicle. | Monthly car loan payments are higher than comparable leasing rates because you are paying for the entire purchase price of your vehicle. |
| Kilometers | There are a variety of different kilometer options for you to choose from at the start of your lease. You are responsible for any excess kilometer charges unless you choose to purchase your vehicle. | You can drive unlimited kilometres, however if you ever choose to sell your vehicle a higher number of kilometers will lower its resale value. |
| Customization | You can customize your vehicle with approved accessories at the beginning of your lease contract. | You can customize your vehicle whenever you want. |
| End of Contract | At the end of your lease, you have the option to either purchase your leased vehicle or return it to the dealership. | At the end of the term of your loan, your vehicle is yours. |
| Wear and Tear | Normal wear and tear is covered, however you are responsible to pay for excessive wear and tear beyond normal limits at lease end. | There are no charges for excess wear and tear, although they will lower your vehicles resale value. |