A Ford Escape Lease: Everything You Need To Know
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Even within the severely competitive compact SUV segment, the Ford Escape had managed to find its foot. Although it had a hard time competing with the likes of Honda CR-V and Mazda CX-5, it’s now one of the most popular compact SUVs available. If you want a stalwart and affordable SUV, it’s hard to go wrong with the Ford Escape.
For consumers looking to drive a new Escape, one of their best bets is to apply for a Ford Escape lease.
If you’re new to leasing, you’re probably wondering if an auto lease is reasonable. Lucky for you, we’re here to break down what you need to know to make the most out of your Ford Escape lease experience.
How is Leasing Different From Buying?
This is one of the most common questions that our readers have. Even if you’re a seasoned car buyer, many aspects of leasing may throw you off. Here are some key differences between leasing and buying a car:
1. Ownership
Perhaps the most significant difference between buying and leasing is car ownership. When purchasing a vehicle via an auto loan, you’re putting down money towards full ownership. Even when the lender has the title, you’re free to do whatever you want with your car and drive it as much as you want.
On the flip side, there’s no vehicle to own in leasing because you’re getting into a long-term rental agreement with the leasing company.
2. Monthly Payments
The lower monthly payment is one of the primary reasons why people prefer to lease rather than buy a car. With a lower average payment of around 30%, you can free up some cash and still get behind the wheel of a new car.
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You don’t want to buy a car - you want to get the best deal on the car you’re looking for. The CoPilot app will notify you if there’s a similar vehicle in your area at a better price, so you’re always certain you got the best deal available.
3. Upfront Costs
With a traditional auto loan, you’ll be required to make a down payment of 10% to get the best interest rates. Leasing requires less upfront costs, and in some cases, you don’t have to place a down payment. Leasing provides you with more flexibility with your cash, but keep in mind that a down payment will also lower your monthly payments.
4. Length of Ownership
As mentioned, you technically don’t own a leased vehicle. A typical lease term or duration is 24 to 48 months. You can’t return the car early unless you’re willing to pay hefty termination fees. Therefore, you can say that your “ownership” in a lease is for a particular duration.
On the other hand, a car purchase lets you keep the vehicle for a year and sell it or drive it until the wheels fall off.
5. Return or Sale of the Vehicle
When you purchase a vehicle, you’re free to do whatever you want once you’ve paid it off. Once you’re ready to move on from it, you can trade it in or sell it, but the burden falls on your shoulders.
You simply drive the vehicle to the dealership and hand over the keys with a lease. Once you’ve settled all financing obligations, you’re free to walk away or lease a new car.
6. Mileage Allowance
Typically, lease agreements come with 10,000 to 15,000 miles annual mileage restrictions. When you return the vehicle, the registered miles should be below the agreed-upon allowance or pay the overage fees. Remember this, especially if you have long commutes or love going on road trips.
When you purchase a car, you can put as many miles to the odometer, and no one will bat an eye.
7. Customization
The majority of lease contracts will require you to return the vehicle to its original state and condition. So if you’re planning to deck out your Escape in 20-inch rims, suspension upgrades, and underbody neon lights, leasing isn’t the way to go.
If you buy your Escape, you can add all the modifications and accessories that you want without worrying that you’ll have to take them off someday.
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Getting Your Ford Escape Lease Right
Now that you know the key differences between leasing and buying, we’ll move on to some quick tips on leasing and how to get it right.
- Get the app - There are many moving parts to a lease, so consider downloading a leasing calculator app to help you stay on top of all the math and make an informed decision.
- Negotiate your contract - Like car buying, there are parts of the lease that you can negotiate. One of the first things you should negotiate is the capitalized cost - the amount of the car’s value that you’re financing during the lease. You need the cap cost to be as low as possible as it greatly affects your monthly payments.
- Lease with no money down - This is more of an option rather than a straightforward tip. Some dealers will let you lease with little to no down payment, giving you some wiggle room with your cash flow. However, remember that the higher your down payment, the lower your monthly payments.
- Lease used vehicles - You can lease a used car, and it may be the cheapest way to get behind the wheel. Some dealers may allow you to lease certified pre-owned vehicles for less, severely limiting your vehicle options.
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- Better credit score, better rates - Like all things financial, a better credit score will get better interest rates. In the case of leasing, a higher credit score will directly determine the money factor - the financing charge (aka interest rate) that you’ll pay with the lease.
- Lease buyout option - Did you love driving your Ford Escape enough to buy it? Fortunately, most dealerships and lending companies will allow lease buyouts. If you choose to buy the vehicle you’ve just leased, the price will be based on the vehicle’s residual value - the predetermined value of the car at the end of the lease. Similar to buying, you may settle the balance by paying cash or applying for an auto loan.
- Negotiate your mileage allowance - Most leases are advertised, assuming that you’ll be driving an annual mileage of between 10,000 to 15,000 miles. If you know that you’ll drive more, feel free to add more mileage allowance to your lease agreement. Meanwhile, if you’re unlikely to hit the annual mileage limit, you may negotiate for a lower allowance to save on your monthly payments.
Get a Curated List of the Best Used Cars Near You
The CoPilot car shopping app is the easiest way to buy a car. Tell us what you’re looking for and we’ll search the inventories of every dealership in your area to make you a personalized list of the best car listings in your area.
Only looking for newer models? CoPilot Compare is the search engine for nearly-new cars. Only see cars five years or newer with low mileage — CoPilot Compare is the best way to find off-lease, early trade-in, and CPO cars.
The best part? CoPilot is built using the same technology that dealerships use to buy and sell their inventories, so we have more info on each vehicle than competitors. CoPilot doesn’t work with dealerships, so there are no sponsored posts or other shady practices — just the most info on the best cars. Check out our About Us page to see how CoPilot works.
