Should You Finance or Lease in Columbia City?

Learn key differences between financing and leasing to help you on your search for a new Ford.

How to Decide on a Loan or Lease for Your New Ford

Most Columbia City, IN drivers must decide whether to lease or finance a vehicle. You will find pros and cons on both sides of the financing equation. Our finance experts do not recommend a one-size-fits-all plan because our customers have diverse financial backgrounds. If you feel undecided about which option will work the best for you, we have the answers you need. Our City Ford Finance Center stays committed to providing our customers with information to make empowering decisions.

Advantages of Leasing a New Ford Vehicle

If you choose to lease a Ford, you can easily transition to a newer vehicle in a few years. You do not have to sell your vehicle or worry about trading in your model. At the end of the lease, you give the vehicle back to the dealership and walk away. With a lease, you also have a great advantage for getting a lower monthly payment. You can inquire about the monthly lease payment before you schedule your test drive, and we believe you'll appreciate the comfort of knowing if you can afford the vehicle. A lower monthly payment can prove helpful if you need to add another vehicle to the household or have a tight budget. You can use those savings to fuel up your Warsaw, IN and North Manchester, IN commutes.

When deciding on a down payment, you will encounter no guesswork. All the fees associated with the lease come pre-determined for you and factor into the lease agreement. It represents a streamlined process with no uncertainty. That certainty alone provides a benefit that gives you peace of mind. Additionally, you will have fewer expenses since the lease comes backed by a factory warranty with added benefits for your Huntington, IN travels. You will have normal wear and tear expenses, but even some of the costs for maintenance may get absorbed by the warranty.

Drawbacks of Leasing a Car

If you want to own your vehicle, you should not choose a lease. If you hope to buy a new vehicle every three to five years, then no problem. Your decision remains relative to your personal circumstances and choices. However, the mileage limitations for a lease may pose a challenge for someone who does a lot of traveling by car outside of the Fort Wayne, IN area. While you can go over the mileage limitations, it will cost you to do so.

Advantages of Financing a Vehicle

Do you want to modify a vehicle to match your style or add in new features? If you finance a car, you can modify it as you choose. Many of our Columbia City, IN customers that want to add accessories, such as roof racks or upgraded audio systems, prefer financing. Additionally, you will not feel restricted to mileage limitations, which gives you more flexibility to use your vehicle however you choose.

When it comes to lender financing, you have even more flexibility. You can choose the terms that fit your budget best, subject to the lender's credit approval. While 60 months to pay the loan may prove reasonable for one buyer, shorter or longer terms may suit another. When you decide to buy another vehicle, you don't have to wait until the contract ends. You can use the vehicle as a trade-in and use any available equity towards the new vehicle. Creative financing, a sizeable down payment, and paying more each month can reduce the likelihood of owing more on the vehicle.

Drawbacks of Financing a Car

From a financial perspective, the main disadvantage of financing a vehicle reflects higher payments. To avoid a monthly payment that may not fit into your budget, you need to make a larger than usual down payment. Additionally, you have to either trade the vehicle or sell it one day. You can't just turn the vehicle over to the dealership the way you can with a lease.

If you feel interested in learning more about leasing or financing or taking a test drive, visit our dealership in Columbia City, IN. We have a great selection of Ford models to choose from our inventory.

How can we help?

  1. City Ford

    3100 East Business Highway 30
    Columbia City, IN 46725

    • Sales: (260) 244-5173
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Get in Touch

  • Contact our Sales Department at: (260) 244-5173
  • Monday8:30 AM - 7:00 PM
  • Tuesday8:30 AM - 7:00 PM
  • Wednesday8:30 AM - 7:00 PM
  • Thursday8:30 AM - 7:00 PM
  • Friday8:30 AM - 7:00 PM
  • Saturday8:30 AM - 5:00 PM
  • SundayClosed