From small city cars to luxury sedans, the American giant takes place in all automotive segments. Appreciated for their performance, comfort, and technological equipment, Ford vehicles have more than one asset under the hood. Do you want to drive a Ford Kuga SUV or a 100% electric Ford Mustang second-hand? Here is everything you need to know before buying a Ford vehicle on lease or classic car credit!
Buying A Used Ford: Classic Car Credit
A car loan is a consumer loan that allows the acquisition of a new or used vehicle without having the necessary budget. For this, the borrower agrees to repay a loan (capital and interest) from a financing organization or a bank to pay for the entire vehicle.
He then becomes the owner and can drive freely, and he can resell the used Ford anytime but must consider the car discount. It is, therefore, a question of paying monthly for a car that is losing its value. The costs of maintenance and repair of the vehicle of the American brand are also at his expense.
Buying A Used Ford: The LOA
Rental with option to purchase (LOA) or leasing is a car
financing solution that allows you to use a new or used car in return for
payment of rent for a period of 2 to 5 years and to decide at the end of the
contract whether or not to buy this car. The advantages of the LOA are in
particular financial:
- You
only pay for the use of the car (no car discount or interest rate);
- Rents
remain fixed throughout the lease period, as does the buyback value of the
used Ford vehicle;
- You
only finance the difference between the new price and the redemption value
(unlike auto credit);
- You personalize the leasing contract as you wish to adjust the amount of the rent: optional contribution, rental period, annual mileage, additional guarantees, etc.
Buying A Used Ford: The LLD
Long-term rental (LLD) allows you to change cars regularly but forces you to return the vehicle at the end of the contract. The maintenance and repairs of the vehicle in the event of a breakdown and the assistance of the car are included in the rental contract.
Mileage limits are established at signing and cannot be exceeded without penalties. The Ford vehicle must also be returned in good condition, or you may be charged a return fee.
What To Choose Between LOA, LLD Or Auto Credit?
It all depends on your situation! If you are attached to the property, go on a car loan.
The car loan allows you to borrow money from a bank or other financial institution to buy the car. You repay the loan monthly over a set time, usually 36 to 72 months. This option can be advantageous if you prefer to possess the vehicle.
However, interest rates can be pretty high, and you must have a good credit history to obtain auto credit. If you prefer to try a recent vehicle before deciding, lease. Before committing, compare the total price of the formulas (rent, contribution, insurance and guarantees, additional costs, etc.). Remember to consider the hidden costs and unpleasant surprises: the discount for the car loan, the excess mileage at the end of the LLD contract.
As you understand, the choice between an LOA and a car loan depends on your needs and financial situation. It is essential to fully understand the pros and cons of each option and make a detailed comparison before making a decision.
Empire Auto Group provides the best-used vehicles in
London, Ontario. Contact us for more details.
