WHEN PURCHASING
When purchasing a vehicle taxes are added to the price, then the down payment, if any, is deducted. This balance is the amount you finance and make payments on.

At the end of the finance term you own the vehicle. The value of the vehicle is determined by market conditions.

WHEN LEASING
When leasing a vehicle, you start with the same selling price as you do when purchasing.

Payments are calculated on the difference between your purchase price, and the future value of the vehicle, at the end of the term, (residual value). The residual value (computer generated), and you're down payment are deducted from the selling price. The principle portion of your payment is calculated on this amount. Interest costs are based on the same balance plus your residual value. The blend of these two amounts, plus the taxes applicable to the payment give you your final payment.

Taxes are not added to the selling price, but to the monthly payment. So, you pay taxes as you go, not in a lump sum at inception. Because of this, you don't pay interest on the taxes as you would on a purchase loan. You never pay taxes on the residual value, unless you actually buy out (take ownership) of the vehicle.

At the end of the lease you have three options. 1) You can return the vehicle to Ford, 2) You can trade or sell the vehicle, 3) You can buy the vehicle for the pre-determined Lease-end price.

Leasing usually produces a lower payment, because you are leaving the residual value out of the principle portion of the payment. Additionally, you are not loading all of the taxes into the loan at the beginning, as you do when purchasing.

AT DAMS FORD LINCOLN
At Dams, we have no preference whether you lease or purchase your vehicle. Our goal is to utilize for you, whichever payment plan best suits your driving styles, and your preferences. At Dams, you make the choice. The best choice. We offer choices, not biased pressure.