Considering the Pros and Cons of Buying versus Leasing Your Next Vehicle

If you've made the decision to finally get that new Subaru Outback or Legacy model you've been eyeing at Belknap Subaru, congratulations. The next step can be confusing though: is it better to buy or lease your new Subaru? Both methods offer distinct advantages, depending on your lifestyle, driving habits and financial situation. Let's take a look at how these two strategies compare.

Considerations when Buying (or Financing) Your New Subaru

• You'll own it. If you decide to buy your new car, with each monthly finance payment you're gaining additional equity in your vehicle as long as you're staying ahead of depreciation. And of course, at the conclusion of the loan you own the car outright.

• No worries about mileage limits. Lease arrangements typically have a cap on annual mileage you're allowed to accumulate: this is usually somewhere between 10,000 and 12,000 miles. If you drive a lot - say for commuting or business reasons, or simply enjoying taking a lot of road trips to visit family and friends - your mileage will add up quickly. That's fine if you're buying the car, but not great if you have a pay a surcharge for any excess miles you drive during the lease.
• It can be more expensive. If you have a strong credit rating and some savings in the bank for a down payment, you'll probably be able to get a low interest rate and you'll immediately have equity in the car via the down payment. But if you're on a tight budget, you may not be able to get as nice a model or as many features as you'd like.

Considerations When Leasing Your New Subaru

You can drive the latest model on a more frequent basis. If you enjoy having the latest and greatest of everything from your smartphone to your car, going with a short-term, two-three year lease may be right for you. At the lease-end, you can roll right into the newest model of your current vehicle, with the newest technology and safety features, or choose something new altogether.
• Leasing a car can be more affordable. All other things being equal, the exact same make and model will have lower monthly lease payments than finance payments. That's because you're only paying for the depreciation that occurs during your lease term. You may also be able to afford a more expensive model or higher trim level for the same price if would cost to finance a lower-end model.
• Maintenance and any significant repairs are going to be covered. A two-three year lease typically falls under the term of your vehicle's manufacturer warranty. While it's important to keep up with regularly scheduled maintenance on a leased vehicle to avoid any end-of-lease charges for excess wear and tear, many higher-end premium and luxury vehicles feature warranties that cover the cost of regularly-scheduled maintenance, including things like oil changes, tire rotations and brake pad replacements.

Clearly, there are important considerations to think through when deciding between leasing or financing your new car. That's where the Finance Center team at Belknap Subaru can help. We'll go over your financial situation and driving style, and help you decide which method is best for you. We also have relationships with a broad range of lenders, so we can usually secure the best possible terms in either case, as well as access to current manufacturer incentives that can save you additional money. You can even apply for financing online using our convenient credit application.

Belknap Subaru is central New Hampshire's leading Subaru dealership, and we have a great lineup of new Subaru models in stock, from the Outback, Forester and Crosstrek to the Impreza, Legacy and WRX. We're located in at 35 Tilton Road in Tilton, NH, and we're very convenient to Concord, Manchester, Laconia and Plymouth. Stop in today to talk with one of our knowledgeable sales professionals, or give us a call at (603)729-1300 to schedule a test drive.