Learn About Leasing at Ciocca Ford of Souderton

Ford Leasing FAQ

The Ford finance center at Ciocca Ford of Souderton is here to answer questions you may have about auto leasing. Leasing is a way to finance a vehicle, and it may or may not be the right way for you to acquire your next new Ford. We do find that many customers don't really understand how leasing works, but once they do, they enjoy the benefits of leasing. Our finance team's goal isn't to convince you to lease, it's to make sure you understand your options and to help you choose the approach that best suits your needs.

How does leasing a new Ford work?

Auto leasing is a method of financing a vehicle where you only pay for the vehicle for the period of time you are planning to use. With a conventional auto loan, buyers pay off their car over several years (terms usually range from 2 to 8 years) and own the vehicle outright at the end of their contract. With a lease, you only pay for the car for the duration of your contract, and you return the vehicle to the dealership at the end of that time. Typically, a lease involves:


  • A limited term contract (usually around 3 years)
  • Lease charges (similar to interest on a loan)
  • A lower down payment than a conventional car loan
  • Lower monthly payments than an auto loan


Browse New Fords for Lease in Souderton

Does a lease protect me from vehicle depreciation?

Vehicles depreciate (or lose value) most during their first few years. Because a lease typically lasts around 3 years, leasing protects you from excess depreciation by having a guaranteed future value (GFV, or residual value).

Leasing institutions place a guaranteed future value on the vehicle. In other words, they estimate how much the lease vehicle will be worth at the end of the lease term. If your vehicle is worth more than that value at lease end, you can take advantage of that potential profit and potentially purchase the vehicle at a great price. If the vehicle is worth less, you can turn the vehicle in at lease end and let the leasing institution absorb that financial loss.

Explore Our Ford Lease Specials

What is resale risk?

When you purchase a vehicle with cash or traditional financing, you assume all the resale risk. This means you're at the mercy of the used car market for the resale value of your specific vehicle when you decide to sell or trade it in. A variety of factors impact the value of a used car, including:

  1. Mileage
  2. Condition
  3. Factory error
  1. Economy
  2. Accident
  3. Color or equipment
  1. Time of year
  2. Publicity
  3. Technology

When you lease a vehicle, most of the risk is transferred to the leasing institution. You are only responsible for the lease vehicle's miles and condition at the end of your lease.

How does leasing compare to a traditional auto loan?

We've put together two examples breaking down how a lease contract compares to a traditional car loan: 


In both cases, it's clear that the Ciocca Express Loan option offers:


  • Lower monthly payments
  • Lower financial commitment over the same period of time
  • Greater flexibility in terms of end-of-lease options

What is the real cost of car ownership?

The cost of owning a car is more complex than the price at purchase. Pennsylvania drivers who are deciding whether to buy or lease their next Ford should also factor in the cost of depreciation and maintenance and repair change as their vehicle ages.

As the chart below shows, vehicles depreciate most right after purchase, while maintenance and repair costs increase significantly as vehicles age. Customers assume the risk of expensive repairs after the warranty expires, and regular scheduled maintenance and normal wear items start to become more expensive as well.

Customers who lease a Ford for 3 years or less avoid these more expensive ownership costs by only driving the vehicle when it requires the lowest amount of maintenance and repair, and they control depreciation through the residual value established for their vehicle. People that finance their vehicles on long term (5 years and longer) finance contracts incur these higher long-term costs on top of their monthly payment. Customers that pay cash or finance their vehicle also have no protection against excess depreciation from factors beyond their control.

How does leasing compare to a conventional auto loan?

Leasing can be a good option for drivers who value flexibility and affordability, or who do not want to be responsible for the risks associated with car ownership. 


Lease

Loan

Contract length

Short-term (usually 3 years)

Long-term (2 - 8 years)

Maintenance costs

Covered by warranty

Owner is responsible after warranty period

Depreciation

Absorbed by leasing institution

Absorbed by owner

Resale risk

No obligation

Owner's responsibility

End of contract options

  • Trade up to new model
  • Walk away with no obligation
  • Extend lease
  • Purchase vehicle
  • Keep vehicle
  • Resell on private market

Contact Our Souderton Ford Finance Department 

If you'd like to talk with our finance team about whether leasing a new Ford car, truck, or SUV is right for you, please contact us. Our leasing experts are here to answer any questions you may have. You're also welcome to visit our Ford dealership's convenient location, which is only a short trip from Souderton, Lansdale, Harleysville, and North Wales. We look forward to hearing from you soon!

Contact Ciocca Ford of SoudertonVisit a Ford Dealer in Souderton

  1. Ciocca Ford of Souderton

    3470 Bethlehem Pike
    Souderton, PA 18964

    • Sales: 215-721-9100
Loading Map...

Get in Touch

  • Contact our Sales Department at: 215-721-9100
  • Monday9am-7pm
  • Tuesday9am-7pm
  • Wednesday9am-7pm
  • Thursday9am-7pm
  • Friday9am-7pm
  • Saturday9am-5pm
  • SundayClosed