Once you understand the basics of leasing, you'll see that it's just as simple as traditional financing.There are, however, some basic differences between leasing and financing, and these are what make leasing so appealing. When you purchase a new car or truck with traditional financing, you agree to pay off the vehicle over the life of the finance contract - typically four or five years - plus any interest or finance charges on your loan. When you lease, you simply pay for the portion of the vehicle's worth that you anticipate using - over the term of the lease - plus any lease charges.

How long is a lease term? Lease terms vary from 12-72 months, however most are in the 24-48 ,month range. There are many advantages to a shorter term lease and if you choose a Red Carpet

Lease from O'Meara and Ford Credit, you'll most likely select a 24-month lease. One of the big advantages of a Red Carpet Lease compared to financing is that at the end of the24-month lease term, you have three choices after you fulfill all of the lease obligations:

• Return the vehicle and lease a new one.
• Purchase the vehicle at a predetermined price and keep it, or
• Return the vehicle and walk away.

  In comparison, after 24 months with four-year conventional financing, your options are quite different. Your financing contract will still be in effect, and you will owe an additional two years of payments. More than likely, you will usually be in a position where you still owe more than your now two-year-old car or truck is worth, a term that is referred to in the auto industry as being "upside down."

  When you think about it, there are some other disadvantages to driving a vehicle for four or more years. First, the manufacturer's warranty will probably expire during your finance term.

  Plus, you'll most likely have to spend money on maintenance items such as tires, brakes and other maintenance concerns. Finally, your needs for a specific size or type of vehicle may change over four or more years.

  It is true that during the lease you don't own your car or truck, but with a finance contract you pay off the finance obligation in 48 months. In that same time you could have had two new vehicles with a Ford Credit 24-month Red Carpet Lease from O'Meara.

   

  1Subject to lease approval by Ford Credit.

  2Subject to any excess wear and use/excess mileage.