Should you Lease or Buy Your Next Subaru?

The decision to lease or buy can be agonizing for some. The process of buying a car and worrying about if you're getting the best deal you can, really causes some headaches. We definitely strive to simplify the process and our business model is built on creating a true win-win for our customers. That said, with the internet being at your finger tips, you can do a lot of research and self-education not just about your potential car but the actual process of getting it, before you ever set foot in our store. To get you started, we offer the following comparison discussion about leasing versus buying your next Subaru. There is no one right answer for everyone, so look below and then do some googling from other sources to get the best objective knowledge you can.

 

Financial Mechanics of Leasing or Buying

When you buy a car, you are paying for the entire price of the car and any charges, services or accessories that you bundle into your loan. With a lease, you are still paying for some finance charges which are usually higher than a car loan because of the shorter term, however, you are only paying for the depreciation of the vehicle while you use it. This is why you are presented with a choice of how many miles you want to be able to drive it. More miles means more deprecation and thus higher lease cost.


Understanding Finance Charges

Whether you lease or buy you are still enlisting a bank to help you procure a vehicle. In a leasing situation the bank is essentially buying the car from us but you're only financing the amount of depreciation the car is likely to have during the lease term. Because the term is shorter and they payments much less, banks' finance charges for a lease are typically higher than for a loan which has a much longer term payoff for the borrowed money.


Which is for you?

If you are only looking at what is the least expensive over time, then a loan certainly wins. Considered over the course of years, you'll definitely pay more by leasing cars. That said, if your main concern is your monthly payment and you're the type of person to switch cars before the warranty runs out then a lease could make sense. Your monthly cost will be smaller and maintenance will mostly be covered by Subaru. A lease typically allows you to get into more car than you might want to in a loan situation. At the end of the day, you really need to weight all these factors and be honest with yourself about what your own financial and vehicle usage scenario looks like. Either way, our finance managers are ready to sit down with you and help you make this decision if you're still stuck after doing some research on our website and elsewhere on the internet. We also have lease specials that change each month so you might stumble into a great deal on a lease if you keep your eye on our special offerings each month.


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