Leasing vs. Buying - What's Right for Me???


If you're like many of our Vermont customers, you may wonder whether it is better to purchase or lease your new Ford. The simple and honest answer is- it depends, as each both have their own distinct pluses and minuses in a given scenario.

Ultimately, you must look not only at financial comparisons, but also at your own personal priorities and ownership intentions to determine which is better for you.

Leases and purchase loans are simply two different methods of automobile financing. Car leasing is not renting as many people seem to think. It's not at all like apartment leasing.

Leasing is a way of financing the use of a vehicle; buying with a loan finances the purchase of a vehicle. Each has its own benefits.


If you Lease:


  • You'll get to drive a new vehicle every 3 years and in most cases - tailor mileage to suit your needs!
  • More vehicle for the money, you'll be able to get those extra luxury, comfort, and convenience features.
  • Lower up-front costs, in the case of our $0 down Lease, NO up front costs!
  • Lower Monthly Payments
  • Your vehicle will always have the latest safety features
  • Drive secure, your new vehicle lease, in most cases, will always be under warranty
  • Easy return. You can return the vehicle at lease end, sell it, trade it, or buy the used vehicle from yourself, and voila! You're ready for your next new car!
  • You can sell or trade your vehicle at any time.


Purchasing Benefits:

  • Ownership. Your vehicle is yours to love forever. You will not have to turn it in in 2-3 years.
  • You'll build up trade-in value and equity for your next purchase
  • Once you pay off your loan, you'll be free of monthly payments
  • You're free to drive as many miles as you want
  • You can sell or trade your vehicle at any time


When you buy, you pay for the entire cost of a vehicle, regardless of how many miles you drive it or how long you keep it. Monthly payments are generally higher than for leasing. You typically make a down payment, pay full sales taxes out of pocket, or roll them into your loan, and pay an interest rate determined by your loan company based on your credit score. You make your first payment 30-45 days after you sign your contract. Later, you may decide to sell or trade the vehicle for its depreciated resale or trade value, which may be considerably less than the vehicle's original cost.

When you lease, you pay only a portion of a vehicle's cost, which is the part that you "use up" during the time you're driving it. Leasing is a form of financing and is not the same as renting. You have a choice of not making a down payment (like what our Formula $0 down Lease provides!), you pay sales tax only on the portion of the vehicle you're using (in Vermont)), and you pay a financial rate, called money factor, that is similar to the interest on a loan. At lease-end, you may either return the vehicle, or purchase it for its depreciated resale value, which is determined at time of lease signing.

Whether you choose to purchase or lease your next vehicle, here at Formula Ford, we want to make sure we have provided you with everything you need to make an educated and informed decision. If you would like more information on leasing, or would like to see how it might benefit you, please call us or stop by the showroom. We're happy to help!

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