Leasing vs. Financing a New Ford

Leasing vs. Financing a New Ford

Here at Olathe Ford, we offer both auto financing and leasing. Which the best choice for you and your needs? It depends on your individual buying habits. Here’s a comparison that can help you decide whether to buy or lease your next Ford.


When most people think of buying a new car, they usually prepare to finance it. There is one major benefit of financing a vehicle as opposed to leasing it. When you are done paying off the auto loan, you become the sole owner of the vehicle. After that, you won’t have to make ongoing payments on your vehicle besides service and insurance costs.

If you intend to keep a vehicle for the long term, financing it is the more cost-effective option. However, if you tend to trade older vehicles in to get a new car every few years, leasing may be a better choice.


Leasing works a bit differently from financing a vehicle, simply because you don’t have to pay off the total cost of the vehicle plus interest. Instead, you will be putting money towards the cost of depreciation.

This is how it works: most vehicles lose a good chunk of their value within their first three years. If you lease a car for a three-year term, the car’s starting value might be something close to $15,000. But over time, that dips down to $10,000 by the time the lease term is up. As a result, you as the lessee, only have to cover the $5,000 of depreciation. Because of this, leased vehicles tend to have much smaller monthly payments than financed vehicles, especially if lessees put a down payment towards the cost upfront.

The downside of leasing is that once you are done paying off the lease, the vehicle will be returned to the dealership. You will not own a leased vehicle unless the dealership offers the choice to pay off the rest of the vehicle at the end of the term.

By understanding the differences between financing and leasing, you can make the best decision for your budget. For more information, come by our financing department at Olathe Ford.

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