Learn About Leasing a New Ford at Spring Valley Ford in Spring Valley Illinois


Interested in leasing a new car? Wondering exactly what that means, and how it can be better than buying a car? Well, look no further!

Leasing is NOT like buying. Leasing is an ALTERNATIVE to buying. With a lease, you can choose to only pay for the portion of the vehicle you use over a set amount of time. Leasing terms can be from 24 to 48 months. People always equate leasing with "renting". That is incorrect. For all intents and purposes, when you lease the vehicle, it is yours until your lease contract is complete, and unlike renting, the money you pay towards your lease actually pays down the price of your vehicle, allowing you to gain equity out of it, or buy it for the remaining amount.

You will have three options with your lease vehicle that you can take advantage off, and these are the advantages that leasing has over buying:

OPTION 1) You can purchase your leased vehicle AT ANY TIME during your lease term.

Consider your lease vehicle as an extended test drive. That means you can drive a new car for 2 or 3 years before you decide you want to actually own it for 10 years! Have you ever bought a new car, and come to find 2 years later that you hate it? How was your experience trying to "trade out" of it? Found out that the value dropped a lot, meaning you would have to pay for a lot of negative equity? Leasing ELIMINATES that problem!

Your lease vehicle will always have what is called a "Buy Out" Option. As you make your monthly lease payments, the Buy Out price will reduce. This Buy Out option is just that --- it means you can buy your lease vehicle if you want! YES - You can fully own your lease vehicle at any time!

You can DEFER the commitment to buy your vehicle until you are SURE it's the one for you!
Even if that means driving it for a few years! Many people's living situations change. What if you purchase or finance a new vehicle, and then suddenly the vehicle is no longer what you want or need? You will take a loss on it trying to sell or trade it in. But with a lease, your commitment is lessened.

OPTION 2) You can TRADE-IN your leased vehicle AT ANY TIME.

What? You mean, you can "trade in" a leased vehicle, as if it is your own vehicle? YES! Regardless if it has equity or not!

Automobiles are typically depreciating assets. That means that they lose value over time. The value of any given vehicle is dependent on how many miles you have driven on it, and the wear and tear the vehicle has sustained --- but mostly, the value of your vehicle is determined by the current market for your vehicle. Some vehicles go down in value more than others because of economic changes, changes in gas prices, or perceived reliability of a vehicle. Think of the value of a vehicle after a big recall goes into effect. Do you think it will go up or down?

So, does that mean a vehicle can actually appreciate in value? YES, it happens for the SAME reasons! One example is the gas price crisis of 2008 --- When gas prices were above $4 a gallon, many big trucks and SUVs lost a lot of value, while smaller, economical vehicles went up in value!

 What happens when (during your lease period) your lease vehicle is worth more than then the remaining BUY OUT amount owed (Remember that? It goes down with every lease payment you make)? That is equity that YOU can take advantage of! This is especially true at the end of a lease period - Depending on market, your lease might just be worth MORE as a trade in than it would be for you to let the lease expire! Our recommendation is, if you lease, to come in a few months before your lease term ends and HAVE YOUR LEASE APPRAISED! Find out if it has any equity! If it does, WE CAN HELP YOU get this equity back! How cool is that?

Also, if you put a lot of money down, or make more than your base monthly lease payment --- all that money can be regained. It's always a smart idea to pay extra, whether you are leasing or financing, for wear and tear and excess mileage you put on a vehicle. This is a smart way to stop negative equity from accruing. Of course, with leasing, YOU NEVER HAVE TO WORRY ABOUT NEGATIVE EQUITY! And that takes us to our last option...

OPTION 3) Return your Lease Vehicle at the end of the Lease Term.

The third option you have is, to simply return your lease vehicle at the end of the lease term. Why would you ever choose this option? Well, remember the part where we said that vehicles are typically depreciating assets? This is the BEST part of leasing --- YOU ARE PROTECTED 100% FROM DEPRECIATION OF YOUR LEASE!

Remember how we mentioned the gas crisis of 2008? Those people who had financed big trucks and SUVs suddenly scrambled to trade in, or "get out" from their vehicles. Many were faced with a $10,000 loss in value, all because of the price of gas! But what about people that leased? They were COMPLETELY SHIELDED from those losses! All they had to do was continue to make their monthly lease payment and WAIT until their lease term was completed, in which they simply returned the vehicle to the dealership, thus washing their hands of any losses!

Let's say you do what we recommended --- you have your lease appraised a few months before the lease term is up. What if you find out your lease vehicle is worth LESS than the Buy Out option amount - Why would you buy or keep an asset that is worth less than its current value? A couple hundred dollars is one thing, but what if your lease vehicle has lost thousands of dollars in value, simply because of market changes? When you lease a vehicle, YOU are NOT responsible! And it gives you the option of not having to buy or own a vehicle that has suddenly and drastically lost value! All you have to do is simply wait until your lease is over! You return the keys, and no matter HOW MUCH value your lease has lost, it's not your problem!

Leasing offers many great benefits - So you might be wondering what are some negatives? What about "The Fees" you were warned about, you might be asking - Have you been told by your grandfather about how leasing costs thousands of dollars extra that no one ever tells you about? Did you see advice in a magazine on leasing, only to be told it's a "Rip off"?

This is as simple as we can put it: Leasing will ONLY cost you the initial upfront costs (such as any required money down or any required upfront payment of taxes or fees) - Other than that, you are only responsible for the monthly payment! THAT IS, as long as you drive within the given mileage of your lease contract, AND you do not excessively damage the lease vehicle while you drive it! But, leasing is so flexible, that even if you drive more than the "contract" mileage, if you pre-pay for this excess mileage with your monthly lease payment (such as, maybe make an extra $30 or $50 per month on your lease payment), when it comes time to turn in your lease --- HEY, you might actually get money back!

This is important! You DO have to care for your lease vehicle - as if it was your own! That includes having insurance on it, repairing any accidental damage, and keeping it maintained with regular service. A small scratch here or there will NOT incur any charges to you --- Any lease vehicle will come with the understanding that it will incur normal wear and tear, such as rock chips, abrasions, or scruffs. BUT, a giant dent in the door probably will cost you money! Also, you are responsible for Tire Maintenance! So if the tires are worn down excessively, when you return your lease, you may be held responsible for the cost of new tires! And this goes for brakes as well.

What about if you drive over the yearly mileage limited?
When you lease, you have a yearly mileage allowance, typically 15,000 miles. ONLY if you return your lease vehicle at the end of the lease will the mileage be checked! So, even if you accidentally drive over the mileage in the first year, but managed to stay under the mileage the next two years, you won't have to worry! And besides, let's say you do drive over the yearly allotment of miles --- if you BUY or TRADE IN your lease vehicle before the end of the lease term, your problem is SOLVED! You only face a mileage penalty if you complete the lease contact and return a vehicle with mileage OVER the total yearly allotment!

DON'T MAKE A LEASING MISTAKE! Feel free to consult us with any questions or concerns!

Do you think leasing might be for you? Many of our dealership employees lease, and there's a reason for that! Interested in giving it a shot, but are unsure? Use the survey below to find out if leasing might be for you - Or, for more detailed information, please contact us @ 
815-664-4512 and ask for our Finance Manager to discuss leasing! Or just any of our Sales Staff!

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