Leasing a car or truck from Ford is an option that many people will consider, not least because the monthly repayment costs for any individual should work out considerably less than if they were to buy the vehicle outright.
Whilst obviously costs per individual can differ depending upon their credit score, the relative costs between leasing and ownership or one individual should be significantly less.
People normally think of for credit in terms of being the finance arm of Ford that arranges auto loans for people wanting to buy a new or used vehicle through a Ford dealership. When arranging or negotiating a lease arrangement with Ford it is important to understand the basics of how a lease works.
The car or truck, often referred to as a Ford vehicle remains the property of Ford, who retain title and ownership. The individual potentially has use of the vehicle for the term of the contract, which can be anything up to 5 or six years.
What is Ford Credit Lease?
The structure of the lease arrangement can be fairly similar to that of a sale, in that the individual is likely to be recorded to make a down payment on the vehicle, and pay a monthly charge to Ford for use of the vehicle.
One of the major differences is that at the end of the lease period the car reverts back to Ford, unlike the end of an auto loan repayment period when the car is owned and hundreds of outright by the individual themselves.
It is also important to realise that there are additional costs at the end of the lease period, and also quite often an option the individual to purchase the car from Ford lease has expired. There is also normally the option, depending upon the management of the lease during this period, for the individual to be offered the availability of leasing another vehicle from Fort instead.
These costs are known as lease end costs, and normally refer to any excess wear and tear to the interior of the vehicle given its mileage and condition, any damage or paintwork or parts that need replacing to the exterior of the vehicle, and any excess mileage that may have been used during the period of the lease.
The lease agreement will specify a mileage allowance, either on an annual basis or for the duration of the lease as a whole, and if the mileage has exceeded this figure then it will be charged to the individual accordingly. All charges relating to lease end costs should be specified in the lease itself in terms of how they are worked out and on what basis they are completed.