Frequently-Asked Questions about Auto Financing

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Leasing and Car Loans near Oklahoma City

General Questions


When you take out a car loan, all the money you pay toward it each month is applied toward your ownership of the vehicle. Once you’ve fulfilled your loan, you own the vehicle outright. The initial down payment and the principal amount of the loan cover the total purchase price.

Leasing, however, applies payments only to the use of the vehicle and covers the vehicle’s depreciation over the time you drive it. This is usually less than the cost of the vehicle. However, once your lease is up, you must return the vehicle.

When you pay your loan in full, you assume ownership of the vehicle. Your lender will send you the title, which they held while you maintained an outstanding balance on your auto loan.

Conversely, when your leasing period ends, you must return the vehicle to the lessor – Zeck Ford – or purchase the vehicle. During the lease period, the lessor maintains ownership of the vehicle and simply allows you to use the car. Ownership is only transferred to you if you choose to buy the vehicle after your lease terminates.

The answer depends on how you’ll use the vehicle. If you want to drive a more expensive vehicle for a smaller monthly payment, leasing is a great option. However, if your goal is to own a vehicle outright, financing with an auto loan is the best way to go. However, only you can determine the best route for your lifestyle.

Questions about Car Loans


Most car-buyers make monthly payments in order to purchase a vehicle, unless they’re in a position to pay cash for a new or used one. You can take out a loan or lease a vehicle if you cannot pay in full upfront.
Your monthly car payment will depend on how much money you’ve borrowed, the length of the loan (measured in months), the interest rate you qualify for, and other factors, like your credit history. You can lower your monthly car payments by putting more money toward your down payment, which lowers the principal or your loan.

Ideal down payment amounts range from 10 to 20 percent of the vehicle’s total cost, although some purchases may not require a down payment at all. A typical loan period is 60 months or five years, with an annual percentage rate around 8 percent. You may qualify for a lower interest rate. Always be sure to investigate any associated conditions or clauses with your auto loan.

Yes, although they work differently than new car loans. A down payment of at least 20 percent is often required, and the interest rates tend to be a little higher. This is, in part, because the bank would rather own a new vehicle than a used vehicle should the buyer default on their loan. Fortunately, there are lots of affordable used cars available for purchase at Zeck Ford.
Yes! Your registration, taxes, extended service plans, and other charges can be included in your auto financing.
Yes. If you’d like to pay down your loan more quickly, most lenders welcome you to do so without penalty. You can make larger payments each month, or send multiple payments. You can even pay off the balance of your loan at any time during your loan term.
If you plan on customizing your vehicle to your liking, intend to keep your vehicle for a long period of time, or would like to eventually re-sell your vehicle to recoup some of the costs of ownership, buying a car using a loan is a smart choice. Similarly, if you drive a lot, buying will be a better value for you, rather than paying mile overage fees or excessive wear fees as established in your lease contract.

Questions about Leasing


When determining your monthly lease payments, the lessor considers how much the vehicle will depreciate throughout the lease and the cost of borrowing money to finance the vehicle during the lease period. There are three key elements at play:

  1. The lessor determines the adjusted capitalized cost. This is the real purchase price after the down payment, discount, and trade-in credit are deductive and any fees or charges, like a destination fee, are added.
  2. The lessor determines the value of the vehicle at the end of the lease, called the residual value. This amount is subtracted from the adjusted capitalized cost, which yields a depreciation figure. The residual value of a vehicle depends on how long your lease is, how much mileage you are expected to put on it, and the make and model of the vehicle you choose to lease.
  3. The lessor assesses the money factor, a number that correlates with the cost of borrowing money during the lease period.

The Federal Reserve Board requires car dealers to publicize all leases’ down payment amounts, lengths, residual values, and interest rates.

Most leases rely on the residual value in determining the end-of-lease purchase price. Closed-end deals such as these require you to pay this amount regardless of the actual market price of the vehicle.

Open-ended leases work differently; the actual market value helps determine the purchase price. As a customer, you’re responsible for any difference between the residual and actual values when you choose to purchase your leased vehicle.

Annual mileage restrictions are built into every lease. Lessors want their vehicles returned in low-mileage conditions to maximize their opportunity to sell when you return the car, truck, or SUV. A typical annual mileage restriction is between 12,000 and 15,000 miles.

For every mile you drive beyond this limit, you’ll accrue fees on a per-mile basis, usually between 10 and 25 cents per mile. If you drive a lot, a lease likely isn’t for you.

Leasing allows you to always drive a late-model vehicle. You also won’t have to pay for any warranty-covered repairs, and you don’t have to bother with re-selling at the end of your lease term.

Interested in driving away in a new car or quality used vehicle from Zeck Ford? Shop our selection of vehicles today and let our financing department navigate car loans and leasing for you.

Zeck Ford Oklahoma is located at: 2311 N 9th Ave • Purcell, OK 73080
Zeck Ford Oklahoma 35.040970, -97.373860.