Monthly Car Lease

Lease or Buy at 0% APR?

0-Down-Ford-Purchase

Earlier this month, while wishfully hunting for Ford Car Lease offers, I found some tremendous deals; not car lease offers, but 0 Loan Deals. A 0-Loan simply means that you can buy the car on a 0% interest rate loan for 36, 48 or 60 months. Is there a catch? Yes, but it is no different than it is with car leasing; you must have decent credit in order to take advantage of this desirable financing. Buying a car on a 0% APR can save you one hundred dollars or more on your monthly car payment and thousands of dollars on your total cost over the life of the loan. For example, a $30,000 Ford Escape at 6% interest for 60 months will yield you a monthly payment of $580. That same $30,000 SUV will cost you only $500 a month at 0% interest. That's a total savings of $4,800 ($80.00 x $60.00) The more expensive the car obviously, the greater the savings. It used to be rare to get a 0% Loan on the longer term 48 and 60 month terms, but Ford is doing it with a large number of their models. As to the question whether or not it is better to lease or buy a car on a 0-Loan, the answer depends on one thing: That you choose a car that leases extremely well. There are $30,000 SUVs out there by Toyota, Honda, Acura and Nissan that you can lease for under $400.00 a month. That's a $180 a month savings and if you don't wish to drive it longer than 2 or 3 years, you are still going to be paying less money than you did on the $580, 0-% Car Loan after 3, 4 and 5 years. Of course, if you keep your $30,000 Ford Escape, you will be able to sell it for at least $10,000, so you will still come away with more cash in the long term, though you will no longer have a new car. The longer you keep your car, the greater your savings; that is, if you have no unusual maintenance expenses. A 0 APR Car Deal is certainly a competitive alternative to Car Leasing. When you are not having to pay any interest, it is certainly more tempting to go for the long, 60-month term in order to lower your monthly cost. Why not borrow at no interest for as long as you can?  Ford will extend your financing up to 72 months, with only a slight .9 to 1.9% Interest Rate hike. Though, you will technically be paying some interest on a 72 month loan, it will still lower your payment over the 0% 60-month loan.

As much as I love to recommend leasing cars, you cannot go wrong with a 0% Car Loan offer. Below is a chart based on the some monthly loan costs from Ford's website which I transposed into monthly payment estimates with actual models. Keep in mind, these are rough estimates only. The exact price depends largely on the resale price and the way the car is equipped. Don't forget to figure in your state tax. Unlike the Car Lease Offers, Ford does not offer much in the way of answering a few other important details.  Is a down payment required? Is the 0% financing based on MSRP or Negotiated Sales Price? Ford's website recommends that you check with your dealership for the rest of the details. In this market, my guess is they are eager to bargain with you.  I've taken the liberty of using the MSRP price as the basis for the loan. When you consider equipping the car with a few extra options before negotiating the discounted sales price of the car, the estimated monthly payments I've used, here, should be pretty close to what you can actually expect to pay. Just realize, that these payments are not exact; they are estimates. No matter how you look at it, though, there are certainly some 0 Loan Car Deals by Ford worth your serious consideration.

0-Loan Car Deals by Ford