Lease or Buy?

Should I Lease Or Finance My Next Subaru?

There are two financing options for Norwalk drivers to choose from; leasing and buying. Both leasing and buying have pros and cons that depending on your financial situation may make leasing better the buying.

Which is Better - Buying or Leasing?

Leasing:

  • Pros: One of the biggest pros to leasing that is appealing for many Danbury drivers is that leasing allows you to get into a new Subaru every 2-3 years. Leasing also lets you get behind the wheel of a more expensive vehicle for less money. Other benefits to leasing include lower maintenance costs, easy transition into a new vehicle, and the latest features. Leasing allows you to have lower monthly payments, have a car with the latest safety features and is always under warranty. Also, if you don't like to trade and sell your used cars, live a stable predictable lifestyle, drive an average number of miles, properly maintain your cars then you should LEASE!
  • Cons: Leasing, however, does have its downsides. Like a limited amount of miles each year that if you go over will cost you X amount per mile. While leasing makes getting into a new Subaru easy it can be difficult to get out of a lease without penalty before the lease is up. Another con of leasing is that you cannot make any special modifications to the vehicle as it will come back to the dealership when the lease ends.

Buying:

  • Pros: Many New Haven drivers prefer to buy their next Subaru because Subaru makes long-lasting vehicles that easily reach 200,000-miles. This is one of the biggest pros of buying. That you won't have monthly payments once the vehicle is paid off. Buying also gives you the options to make special modifications and you can choose to sell your vehicle whenever you want. If you drive more than average miles, prefer to drive your cars for years to spread out the cost, like to customize your cars, might have lifestyle or job changes in the near future, and don't like the risk of possible lease-end charges, then you should BUY!
  • Cons: The biggest downside to leasing is that you will have higher monthly payments and will have to cover all of the maintenances costs out of pocket.

Find out more about Buying vs Leasing options at Dan Perkins Subaru

More Information about Leasing Costs

  • The short-term monthly cost of leasing is ALWAYS SIGNIFICANTLY LESS than the cost of buying. For the same car, same price, same term, and same down payment, monthly lease payments will always be 30%-60% lower than loan payments. This is still true even when compared to 0% or low-interest loans.
  • The medium-term cost of leasing is ABOUT THE SAME as the cost of buying, assuming the buyer sells/trades his vehicle at loan-end and the leaser returns her vehicle at lease-end. The overall cost of leasing compared to buying, over the same lease/loan term, is approximately the same, assuming the buyer sells or trades the vehicle at the end of the loan. Comparisons sometimes show buying to cost a little less than leasing due to fewer fees, lower total finance costs, and the assumption that a purchased vehicle will return full market value if it is sold or traded at the end of the loan (often a bad assumption, especially if traded). However, when the benefits of wisely investing monthly lease savings are considered, along with sales tax savings (in most states), the net cost of leasing can easily be less than buying.
  • The long-term cost of leasing is ALWAYS MORE than the cost of buying, assuming the buyer keeps his vehicle after loan-end.
    If a buyer keeps his car after the loan has been paid off and drives it for many more years, the cost is spread over a longer term. It doesn't take rocket science to figure out that the cost of buying one car and driving it for ten years is less expensive than leasing or buying four or five different cars over the same period. Therefore, leasing is always more expensive than long-term buying. If long-term financial cost savings were the most important objective in acquiring a new car, it would always be best to buy the car and drive it for as long as it survives ? or until the cost of maintenance and repairs begins to exceed the cost of replacing it. However, many automotive consumers have other more immediate objectives that are more important than long-term cost savings.
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