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With Subaru Financial Services, embark on adventures behind the wheel of a Subaru vehicle.
Choosing to drive a Subaru is an easy decision since every Subaru vehicle gives you impressive capability, advanced safety, and outstanding value. But when it comes to deciding between leasing versus buying, the choice gets a little harder. Let’s look at some of the pros and cons between leasing and financing to help you make the best decision.
If you value flexibility, predictability, and convenience, leasing a vehicle may appeal to you. While there are typically limits on your annual mileage, there’s also less commitment compared to financing because you’re only agreeing to lease the vehicle for a limited time period. The payments on your Subaru leased vehicle can also be lower than loan payments. Plus, there are usually fewer upfront costs and major wear and tear repairs. But when your lease is up, you return the vehicle to your local Subaru retailer. That’s not necessarily a negative if you’re interested in always having the most up-to-date technology, as your next brand-new leased Subaru will come with even more cutting-edge features.
Financing a vehicle can sometimes result in higher monthly payments compared to a lease. On the other hand, with an auto loan, each monthly payment toward the principal builds equity and once the loan term is over, you own it, and any Subaru owner can tell you: a Subaru is built to be a long-lasting value. There’s also the freedom to add aftermarket customizations to personalize your vehicle’s appearance, which is usually not allowed on a leased vehicle. Financing also gives you the freedom to drive your Subaru as far as you like with unlimited driving miles.
Upfront costs alone tend to be lower.
When buying, upfront costs will be higher and you can expect to make a significant down payment.
Monthly payments are typically lower than vehicle loan payments because you are not paying for the total price of the vehicle. However, the monthly finance charges are higher.
Monthly payments are typically higher than lease payments.
Leased vehicles are typically under a maintenance contract and you only pay for routine maintenance such as oil changes and tire rotations.
As the owner, you’re responsible for all maintenance. Some loan agreements include more comprehensive service agreements for an additional charge.
You are responsible for keeping the vehicle in good shape and can be charged extra for excessive wear and tear. These details are typically outlined in the lease agreement.
Wear and tear won’t affect your loan but could lower the vehicle’s overall value, which would cost you if you eventually trade it in or sell it.
Leases have mileage limits, typically between 16,000 and 24,000 kilometers per year. At the end of your lease, you’ll have to pay extra for every mile you go over the limit.
You can drive as many kilometers as you want, but excessive mileage can lower the vehicle’s resale or trade-in value.
Customizing or changing the appearance of the vehicle can break the lease agreement and lead to additional fees.
Owners who purchase their vehicles are free to customize and change their vehicles as they see fit.
You do not own the vehicle, but you make payments to use it during the lease term. At the end of the term, you must return the vehicle unless you decide to purchase it.
You own the vehicle and make monthly loan payments to pay it off. After completing the payments, it’s all yours.
At the end of the lease term, you may return, purchase, or trade the vehicle in.
At the end of your vehicle loan, you own the vehicle and can keep, sell, or trade it in.
You could qualify for preapproved financing, which means you’ll have the information you need to choose a Subaru that you’ll love.