When you pay us a visit at Glockner Ford in South Point, OH, and choose a vehicle from our extensive inventory of sedans, SUVs, trucks, and vans, you have two options for driving off. You can buy or lease the vehicle. Both have their pros and cons.

Buying

You're probably more familiar with buying a car. If you don't pay the full price in cash, you'll finance your purchase with an auto loan. You then end up owning the vehicle and can drive it for as long as you want without additional financial obligation. Qualifying for an auto loan is generally easier than for a lease. Our Finance Department can approve you whether you have good or bad credit or no credit. We work with you to find an installment plan that works with your budget.

When you buy a vehicle, you won't have any limits on what you can do with it. Add the latest parts and accessories to truly make it your own. When you want a new ride, either sell the car or trade it in as long as it's paid for or you can pay for what you owe on any loan. You can also drive it for as many miles as you want and have no limits on where you can take it. Going to Canada, Mexico, or farther is fine.

In the short run, buying a car is more expensive with monthly installments that are higher than a lease. You can reduce these payments by extending the term of the loan or by contributing a down payment or trade-in. You're making payments on an asset that is constantly depreciating. A new car may go down in value by as much as 30 percent in the first year. If you don't make a big enough down payment, you may end up owing more money than the vehicle is worth. This is known as negative equity or being upside down on a loan.

Leasing

A lease is similar to renting a car but you're doing it for a longer-term, typically 12 to 36 months. Because you're paying to use the car rather than to own it, the lease payments are typically lower than on a loan. Down payments are usually not required on a lease, although you do make an initial payment that includes several fees, the first month's payment, and a security deposit. At the end of the lease term, you walk away with no financial obligations. However, you can also buy the vehicle or sign up to lease a new vehicle.

Because you're changing your vehicle every few years, you benefit from always having the latest technology. Your car will be under the basic warranty, which lasts for three years or 36,000 miles with Ford. The FordPass program rewards you with points that you can use for maintenance during most, if not all, of the lease term. All your scheduled visits to our Service Department are free.

The biggest downside of leasing is that you never own the vehicle and will be making monthly payments as long as you choose to drive. You can never trade in or sell your vehicle. Getting a lease can be difficult when you have poor credit. At the end of the lease, you may be surprised with extra costs, such as wear and tear.

You can only drive a certain number of miles per year and going over that limit incurs additional payments. There are restrictions on where you can take the vehicle with many leases not allowing travel beyond US borders. You may also be limited on how you can use the vehicle. For example, some leases do not allow the use of vehicles with ride-sharing programs like Uber or Lyft. You cannot customize the vehicle. In fact, you must return the car in as close to the original condition as possible.

Making a Choice

If you're still unsure on whether buying or leasing is good for you, contact our Finance Department. They'll be able to answer your questions and offer some numbers based on your budget. If you're going to buy, consider filling out our Online Finance Application to save you time and to pre-qualify for a loan.