Auto Financing Center

When financing a vehicle, you’ll choose between a loan and a lease, with each offering distinct advantages depending on your driving habits and long-term goals.

Getting a Loan for a New Model

A loan, whether for a new or used model, involves borrowing a set amount of money and agreeing to repay it, along with interest, over a predetermined period. For a new Ford, the loan amount covers the entire purchase price (minus any down payment or trade-in value). For a used vehicle, the process is similar, though the terms may differ depending on the car’s age and mileage. 

When you secure a loan, you gain ownership of the vehicle right away, and once the loan is fully repaid, you hold the title outright. This option provides full freedom to customize your vehicle, drive unlimited miles, and keep the car for as long as you wish. It is a suitable choice for drivers who value long-term ownership and plan to accrue significant mileage. The payments typically consist of principal and interest, structured over terms that commonly range from three to seven years.

Choosing to Lease a New Model

A lease, in contrast, involves paying for the depreciation of a new vehicle over a specified term, usually two or three years. You do not purchase the entire vehicle; instead, you pay for the portion of its value you use during the lease period. Lease payments are often lower than traditional loan payments because you are not financing the full sale price. 

This method is often appealing to individuals who prefer to drive a new vehicle every few years and wish to keep monthly expenses low. Leases come with specific contractual terms, including annual mileage limits. Exceeding these limits can result in additional charges at the end of the term. At the end of the lease, you can return the vehicle to us or purchase it at the predetermined residual value. Leasing provides flexibility and access to the latest technology and features without the long-term commitment of ownership.

Acquiring a Loan for a Used Model

Financing a used vehicle through a loan involves many of the same steps as financing a new one. The amount financed is the purchase price minus any down payment or trade-in value. Since used vehicles have already depreciated, the principal loan amount is often smaller than that of a new vehicle loan, potentially leading to lower monthly payments. 

However, loan terms for used vehicles may sometimes be shorter, and interest rates can vary based on the vehicle’s age and the borrower’s credit profile. Whichever path you choose, reviewing your credit history and understanding your personal budget are preparatory steps that will help streamline the application process.

Get the Financing You Need for Your Next Ride

Securing financing for a new or used vehicle at College Station Ford is an important step toward realizing your transportation needs. By understanding the distinctions between loans, which lead to ownership over time, and leases, which offer lower monthly payments for new vehicles, you can select a plan that aligns with your financial needs. 

Furthermore, capitalizing on the value of a trade-in vehicle can significantly streamline the purchase process and reduce the total amount you finance. At College Station Ford, our financing team is ready to assist you through every phase of this journey, providing guidance to make your transition as easy as possible. We encourage you to reach out to our team to discuss your specific situation and explore the options available to you.