Leasing programs through Larry H. Miller Subaru give you the freedom to change your mind every few years, often with lower monthly payments than a loan. Visit us for the greatest lease rates in Boise, Meridian, Nampa, Caldwell, and the Greater Treasure Valley. Continue reading to learn the differences between leases and loans.
Leases and car loans are just two different methods of automobile financing. One finances the use of a vehicle, and the other finances the purchase of a vehicle. There are benefits and drawbacks to both. Whether one or the other is more beneficial to you depends entirely on your own personal situation and preferences.
So, you're interested in a new car, but aren't real sure whether you want to buy or lease. We can help you decide which option is best for you.
Leasing vs Buying a Car
Leasing Benefits - Why Lease?
Lower monthly payment! Monthly lease payments are typically lower than monthly loan payments because lessees only pay for the use of the car, not the entire vehicle. Many times you can lease a Subaru with little or no money down, so there is less out of pocket expense at the onset.
Upgrade your car more often! If you are one of those individuals who likes to upgrade your phone every time a new one is released, then leasing might be for you since you can essentially do the same thing, just with your car. Having the latest technology or safety (or styles or trends) may be important to you - if so, a lease on a vehicle might be for you.
Have more options! When you lease, you have options available at lease-end. You can choose to lease another Subaru, or purchase the one you have grown to love at a much lower, no hassle pre-determined price. Or, you can turn it in and walk away. Without the hassle of selling or trading in your old car (many times for less than you owe), you can enjoy a simple process that allows you to drive a new vehicle every few years.
Little to zero vehicle maintenance! Many people lease for the length of time the manufacturer's warranty is in effect. This way, if any repairs are needed they are typically covered by the warranty. Subaru offers a standard 3-year/36,000 mile limited warranty, and additionally offers coverage for the powertrain (engine, transmission, drivetrain) for 5 years or 60,000 miles.
Finance Benefits - Why Buy?
Ownership. At the end of your loan, you own your car with no payments. You can love your Subaru for as long as you want and it's all yours.
No Limits. Drive an unlimited amount of miles with no penalty - if you typically drive your car more than 12,000 - 15,000 miles per year this option is preferable.
Personalize. If you like to customize, modify, or repaint, then buying a Subaru is probably your best choice.
True Love. Do you get emotionally attached to your vehicles? (Come on, we know some of you do.) You may prefer to purchase to avoid the separation anxiety.
Asset Retention. When you buy, you retain the benefit of trade-in or resale value. However, since a car is a depreciating asset, you may find yourself a bit upside if you choose to trade unless your loan has been fully paid off by that point.
Here is an example of a Subaru driver who probably shouldn't lease: