Buying a car is one of the biggest purchases you can make, so it’s always best to study up on what your options are before you dive into it. Here at Adventure Subaru, we understand that ‘leasing’ can be a somewhat scary term when you don’t know much about it. There is no one-size-fits-all solution here, but leasing can actually be a great option for some shoppers. That’s why we decided to break down some of the benefits of leasing vs. buying your next Subaru.
What is leasing, anyway?
We’ll start by helping you understand what it means to lease a car. The process isn’t all that different from buying a car, but there are some key distinctions. It’s a lot like renting vs. buying a house. When you purchase a car, the idea is that you will eventually pay off the entire cost of the vehicle. When you lease a car, you’re only responsible for paying for the depreciation that occurs while you have the car, which is usually about three years or so. When your lease is up, you simply return the car to the dealership.
Funds
Of course, the first consideration for most car shoppers (especially younger ones!) is money. One of the most attractive things about leasing right off the bat is the significantly lower cost upfront. Leasing allows you to minimize your down payment, or even eliminate it. Your monthly payments should be lower too, so it’s a good option for people who need to free up their monthly cash flow as much as possible. On the other hand, if you have a particularly bad credit history or you’d just prefer to put more money down on the front end, buying might be the better option for you.
Flexibility
Once you drive away with your new Subaru, there are some things you have to keep in mind when you’re leasing. For one thing, the number of miles you can drive per year is limited. If you drive out of state for work every week, or if you’re just really into cross-country road trips, this condition could be an issue for you. But if you are using your Subaru for your business, you can actually claim it as a business expense. Leasing expenses are deductible, so that could be a huge benefit for some. Another great thing about leasing is that you have the freedom to replace your car with a new model every few years. So if you like to stay up-to-date with the latest tech, safety and convenience features, leasing is definitely something to consider.
Future
Looking ahead, you need to figure out what your priorities are in the long run. Make sure you know you’re comfortable committing to the full time of the lease, because you won’t be able to sell the car for extra cash in a year if something comes up. The good news is that leases often aren’t very long-term, so you won’t have to plan too far in advance. On top of that, vehicle leases come with a special warranty so you won’t be stuck covering for major repairs. Nice. You also have to be okay with knowing that you won’t have a car to trade in when your lease is up. Of course, that’s not an issue if you like the leasing process and want to continue leasing your Subarus. It’s all about your personal preferences and priorities!
Leasing vs. Buying Summary
So, let’s summarize some of the benefits of leasing vs. buying:
Leasing Pros:
Low-to-no down payment
Lower monthly payments
Nicer car for less $$
Lower repair costs
New car every few years
Latest tech & safety features
No trade-in hassle
Less sales tax
Deductible expenses
Buying Pros:
More long-term savings if you wait to sell
Freedom to modify
Freedom to sell at any point
Available to trade in for your next car
Don’t have to keep clean
Unlimited miles
So, there you have it! Hopefully this gives you a little more to think about before making such a big decision. If leasing is starting to sound like an attractive option for you, you can browse through Adventure Subaru’s current lease offers on our website or stop by and talk to one of our sales professionals. When you come in, ask about our Sign & Drive special. Through the end of the month (November 30, 2017), Subaru will pay the first month of your lease on a new 2018 Impreza. It doesn’t get much better than that!
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