Ford, in common with other motor manufacturers, offer potential customers the option of leasing a vehicle such as a car or a truck, as opposed to buying one at right. If the customer seeks credit or finance, he may well apply to Ford credit to provide the financing of any lease agreement or program.
Ford called their leasing program red carpet lease, and operate it through all of their dealerships.
Any potential customer looking to lease a Ford vehicle would do well to think of it as being fairly similar to a long-term rental, with the structure in terms of finance fairly similar in practical terms to that of arranging dealership financing to purchase the car or truck.
When entering into a Ford red carpet lease program the customer will be asked to undertake a credit check, and Ford will seek to assess the creditworthiness of the individual to make sure that they are in a position to undertake the lease agreement with them.
How does Ford Credit Leasing Work
If Ford credit decide that the customer is a relatively good credit risk than they will offer the leasing program to them. This will normally involve paying a fairly hefty deposit on the vehicle, a monthly fee and a number of costs at the end of the lease period.
A lease period can technically run for any length of time, but normally run for between 2 to 6 years. At the end of the lease period however long it may be, the customer almost likely be offered the option of either purchasing their vehicle from Ford at a significant discount, or taking out a lease on another vehicle.
If the customer sites to do neither they will face paying the full extent of the lease end costs. Lease end costs relates to excessive wear and tear on the vehicle, but inside and outside, and any damage however trivial to the paintwork or bodywork or wheel trim etc. In addition, the customer may well have to pay the cost
When taking out a lease agreement there is an allowed mileage for the vehicle, either on an annual basis or for the duration of the lease. If that is exceeded, then at the end of the lease period then an additional cost will be imposed on the customer.