Car Financing in Springville, AL

When it's time for a new vehicle, you don't have to purchase a car outright to secure the model you want. By leasing a car, you can enjoy all the perks of driving off the lot in a brand new model without paying a high sticker price. You can even trade in your current vehicle and put that money toward your new lease, which will help you save even more money than the low monthly payments do. Let's explore exactly what leasing involves and how All American Ford can help you lease your next vehicle.

What Is a Lease?

A car lease is a contract that establishes a monthly payment that you'll continue for a set period of time. During that time, you'll be able to drive your new car and all of the luxurious features it has to offer you. When the car lease term ends, you'll return the car and your monthly payments will end. Car leases typically provide more affordable ways to drive brand new vehicles, and some even include perks like free maintenance visits and oil changes.

Leasing vs. Buying

There are a few key differences between leasing and buying a vehicle. Here's a closer look at the advantages and disadvantages of each choice:

Ownership

The main difference between leasing and buying a new car is the level of ownership you maintain. While you own a car immediately when you buy it outright, you only have use of the car for a specific amount of time when leasing and do not obtain ownership. 

Useful Life

By leasing a car, you ensure that you get to drive a new vehicle at the peak of its useful life. Since monthly payments are often lower than financing or buying a new car with a car loan, you can enjoy the model at the height of its performance and power without worrying about how it will depreciate in value over the years. Your monthly payment will automatically be based on the depreciation of the car, so even if it loses value, you won't end up paying more.

In contrast, when you purchase a vehicle, you immediately feel the repercussions of depreciation, as the car will lose value as soon as you drive it off the lot. Most people buy cars and intend to own them for a long time, which means you'll be driving your vehicle as its useful life dwindles, eventually having to sell or trade it in for much less money than you initially bought it.

Contract Terms

Leasing and buying a vehicle also differ in the contract terms they typically involve. When you lease a new car, you'll have the option to trade it in for a new lease at the end of term, meaning you can always have access to brand new models. This makes it easy to stay modern and ensures you always have the most up-to-date technology. Many car leases also include terms like no-cost maintenance and warranties that cover damages, so you won't always be responsible when your car needs a repair.

If you decide to purchase a car outright, the contract typically focuses on the monthly payment you'll have to either pay back the car loan or comply with your financing contract. While you can sometimes add on warranties for a discounted cost when buying new, you won't have the same perks of no-cost maintenance as you do when you lease.

End of Lease Options

If your lease is almost up, there are a few different options you have. All American Ford offers three courses of action, each of which has its own benefits. Here are a few more details about each end of lease option:

Return the Vehicle and Walk Away

When a lease term ends, the standard course of action is to return the vehicle. This means that your monthly payments will end, and the financial commitment for that vehicle will be over. If you're looking to have a car for a short period of time, the ability to return the vehicle and walk away from the lease at the end of the term is a great way to ensure you save money and protect you from having to sell or trade-in your car when you don't need it anymore.

Exchange for a New Lease

Another option you have is exchanging your vehicle for a new lease. This allows you to negotiate a new contract and monthly payment and walk away with a brand new car that's even more updated than your last. At All American Ford, our team will help you find your next vehicle and figure out the terms of your new contract, making the transition from one lease to the next as easy as you could imagine. 

For drivers from Moody, Trussville, and beyond who like to upgrade their ride frequently, this is a massive perk of leasing instead of buying, as you'll always be able to transition to a newer model when your lease ends. With a massive inventory of new vehicles that's always being updated, we're sure you'll find a new lease you'll love when it's time to exchange.

Buy Out the Lease

If you've fallen in love with the car you lease and don't want to give it up when the term ends, you can buy out the lease. This means you'll pay whatever is left of the lease, plus a few fees, and be able to leave as the permanent owner of the vehicle. When you lease a car so great that you can't imagine driving anything else, the option to buy out your lease is a huge benefit.

Lease Your Next Car With All American Ford in Springville, AL

Leasing a car is a great way to get the exact model you want without the full commitment of purchasing outright. Whether you want a short-term lease or a lease-to-own contract, All American Ford is ready to help you through every step of the process. Visit us today to talk with a finance specialist about how you can lease your next new ride, and ask about our new vehicle specials that will help you save even more money. We'll make sure you get the best deal you can and drive off our lot in the new car of your dreams.