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Perhaps you’ve heard that leasing a car is more affordable than buying?
Or maybe you’ve been told that buying is better because you will build equity in your vehicle?
We are breaking down the advantages to buying and leasing so that you can determine which option best suits your vehicle
needs, personal preferences, and lifestyle!

5 MAJOR DIFFERENCES BETWEEN BUYING & LEASING

#1 : Short-term and long-term value for investment

Monthly payments are generally smaller on leased vehicles than vehicles purchased with an auto loan. When leasing a vehicle, monthly payments are calculated based on the depreciation value of the vehicle (along with interest charges, taxes, and fees) instead of the full purchase price of the vehicle.

Similarly, the recommended down payment on a leased vehicle is also lower than when buying a car. The lower upfront cost associated with leasing allows people to save money to put toward other expenses OR to “afford” more expensive models or higher trim levels than they may necessarily be able to purchase outright.

The disadvantage to leasing is that when the lease term is over, you won’t own or have equity in your vehicle. Buying a vehicle can mean higher initial expenses, but the money goes towards building equity in the vehicle. Though the vehicle will depreciate over the years, buying the vehicle allows you to cash in on that equity value or even use it as a down payment on a future vehicle

At the end of a lease term, you will decide whether to buy the car outright, move on to another lease, or simply settle up and walk away

#2 : Maintenance & repair costs

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Vehicles inevitably have more upkeep expenses as they age. One of the biggest advantages to leasing is that the vehicle is typically under factory warranty during the lease term. Factory warranties will cover any mechanical repair not related to accident or abuse. Since the most common vehicle lease term is 3 years and the Subaru factory warranty lasts 3 years or 36,000 miles, that means that drivers who choose to lease will likely not experience costly repair expenses associated with their vehicle.

Most people who choose to buy a vehicle typically keep the vehicle longer than 3 years. As more miles are put on the vehicle and it is subjected to wear-and-tear, the owner will be responsible for the cost of maintenance and repair. Fortunately, there are many great packages and vehicle service contracts available that extend the protection on your vehicle beyond the manufacturer warranty.

Learn more about vehicle service contracts here.

#3 : Freedom of vehicle use

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Do you enjoy using your vehicle for long roadtrips, rugged off-roading adventures, and for exploring parts-unknown? Or is your vehicle used primarily for commuting to work, running errands, and driving around town?

Subaru owners have a wide variety of uses for their vehicles. Some people choose Subaru because their reputation for safety makes them the perfect family car. Other people choose Subaru because their AWD and extensive selection of factory accessories make Subarus the vehicle of choice for many adventure seekers and outdoor recreation enthusiasts.

When you buy a vehicle, you have total freedom over how you use it and how you modify it. When you lease a vehicle, the dealership will resell the vehicle at the end of your lease term. To ensure it is in good condition to resell and to help estimate the residual value, certain restrictions apply to leased vehicles.

Most leases allow drivers 10,000 and 15,000 miles per year. Subaru charges a rate of $0.15 per mile if you exceed the limit on your lease.

Some accessory and modication restrictions also apply to leased vehicles. Factory accessories and window tinting is allowed, but after-market accessories are not permitted.

#4 : The value of modern features

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Every year, there are amazing innovations in car safety and technology. If you are someone who enjoys experiencing the latest and greatest features that a vehicle has to offer, leasing may be ideal for you! Since most lease terms are three years long, this means that drivers will have the opportunity to upgrade to new vehicles regularly.

Contrarily, most car owners will own their vehicle longer than three years, meaning that the vehicle’s features may eventually seem outdated in comparison to newer models. If building equity and saving more money in the long-run is more of a priority to you than always driving a new car, buying is a great option! If you plan on owning and driving your car for many years, research vehicles with optimum safety, technology, and design features for your needs.

#5 : Parting ways with your vehicle

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Right now, as you excitedly research your new vehicle, it probably seems hard to imagine the day you and your new car will part ways. But thinking about the end of your journey together is actually a valuable consideration when deciding whether to buy or lease.

For some people, leasing is ideal because it allows them to avoid the perceived hassle of selling their vehicle. Others may find peace of mind in buying knowing that when they no longer want to own their vehicle, they can sell or trade it for cash.

In life, most people will experience an occasional “bump-in-the-road”, such as unexpected home or medical expenses or perhaps the loss of a job. Lease contracts are more difficult to get out of early, however, a purchased car can always be sold to free up some cash or traded in for a less expensive model. For these reasons, it’s important to consider how financially flexible your situation is when deciding to buy or lease a vehicle.

LEARN MORE ABOUT BUYING & LEASING

Car Leasing Explained

What happens if I drive more than average mileage? What happens at the end of my lease? What happens if I get into an accident with the leased vehicle? When is it not advantageous to lease a car? Can I trade my lease before my lease term is up?

How Do I Finance A Car?

Will answers FAQ’s about vehicle financing at car dealerships, such as: making down payments, types of cars that can be financed, auto loans vs. credit cards, financing without established credit, credit pulls, and how long the financing process takes.

LEARN MORE ABOUT BUYING & LEASING

Get preapproved for a lease or auto loan. Customize your lease preferences. Estimate your monthly payments. Calculate the trade-in value on your old vehicle! Learn more about Proctor BuyPass here.

Yes! Bypass the showroom & save time by designing your deal online. Get preapproved online and customize your lease on a new Subaru with Proctor BuyPass.

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2021 Subaru Ascent Limited
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2018 Subaru Forester 2.5i Limited