Leasing a car is not for everyone. In fact according to Ford Motors, only approximately a quarter of car buyers opt to lease vs. buying their car. When leasing, it’s important that you are clear on what the financial advantages / disadvantages are and how these benefits ladder up to your personal motivations and lifestyle. Here are a few points of consideration:
Do you like drive new cars? Leasing provides the opportunity to switch your car every 2 – 3 years, allowing you to always drive the latest car model. However, if you like to drive cars that are stylish and edgy, where the model designs change radically from year to year, then you may be paying a higher monthly premium for this car (as the resale value doesn’t hold as much as more popular cars).
Do you drive excessive miles every year? For a lease to be viable, your car mileage needs to be within an acceptable limit (i.e. around 15,000 miles per year). If you exceed your agreed mileage, you will likely be charged at a premium for the additional miles.
Is your credit score intact? Typically leasing requires a higher credit score than buying a car due to the higher risk that the lease provider takes on. If you don’t have lots of debt, and feel that you can make a monthly payment each month then leasing may be a good option. However, if your credit score is lower, you will likely be susceptible to higher interest rates. You can check your credit at www.freecreditreport.com
Check out some great cars and lease options with Ford at www.ford.com