Subaru
Financial Services

With Subaru Financial Services, embark on adventures behind the wheel of a Subaru vehicle.

Lease vs Finance

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.

Subaru location

Leasing

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.

Subaru financement

Financing

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.

Advantages and Disadvantages

Upfront Costs

Leasing

Upfront costs alone tend to be lower.

Financing

When buying, upfront costs will be higher and you can expect to make a significant down payment.

Monthly Payments

Leasing

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.

Financing

Monthly payments are typically higher than lease payments.

Maintenance

Leasing

Leased vehicles are typically under a maintenance contract and you only pay for routine maintenance such as oil changes and tire rotations.

Financing

As the owner, you’re responsible for all maintenance. Some loan agreements include more comprehensive service agreements for an additional charge.

Wear and Tear

Leasing

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.

Financing

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.

Use/Mileage

Leasing

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.

Financing

You can drive as many kilometers as you want, but excessive mileage can lower the vehicle’s resale or trade-in value.

Customization

Leasing

Customizing or changing the appearance of the vehicle can break the lease agreement and lead to additional fees.

Financing

Owners who purchase their vehicles are free to customize and change their vehicles as they see fit.

Ownership

Leasing

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.

Financing

You own the vehicle and make monthly loan payments to pay it off. After completing the payments, it’s all yours.

End of Term

Leasing

At the end of the lease term, you may return, purchase, or trade the vehicle in.

Financing

At the end of your vehicle loan, you own the vehicle and can keep, sell, or trade it in.

Financing Request

You could qualify for preapproved financing, which means you’ll have the information you need to choose a Subaru that you’ll love.