Lease Vs Buy Your Next Subaru? Is A Subaru Lease Your Best Option?

Lease vs buy your next car
You’ve probably been looking at buying or leasing a car and you’re wondering what all the advantages and disadvantages might be. While leasing sounds great with low monthly payments, it’s not the best option for everyone. Buying seems like a good option too, but if you’re looking for the latest technology and design, then leasing might be the winner.

The choice depends on you and what your goals are. In this post, we’ll break down all the pros and cons of buying or leasing your next Subaru.

Should You Lease Vs. Buy A Subaru?

When you buy a brand new car you can pay for it in full or get a loan. When you drive a brand new car off the lot, it immediately loses value. While most people buy a second-hand car, if you want something new then a lease is for you.

When you lease a car, it’s always brand new. You can enjoy the benefits of a new car, with lower monthly payments than your typical loan. The biggest downside is that you don’t own the car. You must return it at the end of your term when you can then exchange it, purchase it or walk away.

There are many benefits to both buying and leasing, so let’s look at a few of them right now.

Benefits of Buying A Car

You Own It

When you buy a Subaru outright, you own the vehicle. It’s yours to do whatever you want. You can upgrade the car, modify it, and you can sell it whenever you want. The car is yours. 

The downside of having loan repayments is they are usually higher than lease repayments.

Driving more than 15,000 Miles per year?

Since most leases have a mileage limit, if you plan to drive more than 15,000 miles a year, then buying is probably the better option. If you’re leasing and go over the mileage limit, you’ll need to pay extra fees.

Benefits of A Subaru Lease

Short Term Option

Leasing is a short term option, often locking you in for 2-5 years and in rare cases, 1 year. These numbers are negotiable like any other car purchase. If you think you’ll change the car in 2-3 years then a lease would be the better option for you.

Always up the date with new models

If you appreciate brand new cars, leasing might be great for you. When you lease, you always get the latest model, and you can ask for special extras. You can enjoy new safety technology like Subaru Eyesight, as well as touch screen displays, lane assist, and much more new technologies. 

Low Monthly Fees

The monthly cost of a lease is considerably less than the loan repayments for purchasing a car. If the high monthly costs worry you, then you might want to go for the lower payments that a lease option offers.

Leasing a car is a luxury experience. The low monthly costs mean you can afford to lease an expensive car. You can get a new car every couple of years and you don’t have to worry about reselling it.

The Cons of Leasing

There are certain situations where leasing a car won’t be the best option. To make the correct decision you must understand all the details of what leasing includes.

When you lease, you'll most likely have to make an upfront down payment on your car which you won’t get back at the end. This is a normal cost of leasing the car.

Responsible for scratch and dents

Many lease agreements include charges for wear and tear, scratches or any other problems. You can negotiate any details so if you don’t agree with some terms, then discuss it with the dealer. Most dealers like Subaru of Twin Falls, offer additional coverage options for your leased vehicle. 

No Ownership

The major downfall is you don’t own the car and you have no option to sell it later, you are only renting it. It’s as if you rent a property instead of buying it with a mortgage. When you rent, you have no ownership and you can’t do much with the property.

There is also a major advantage to renting. You have the freedom to switch cars whenever you want, and you always have the latest most high-tech vehicle.

Leasing Means Returning

If your plan is to keep the car for 3 years or more (the time when most lease terms expire) then it might be better for you to buy. When you lease, you must return it at the end of your term.

Many Leasing Benefits

If you love the feel of a new car and you’re a first adopter when it comes to car tech, then leasing is a great option. The low monthly payments mean that you’ll drive a brand new car off the lot for significantly cheaper than purchasing one. The downside is you must return it, but if your plan is to switch cars in a few years then this would work well for you.


The Big Differences

Let’s break down leasing vs. buying in a simple chart, so you can clearly see all the distinctions between the two.

  Buying   Leasing
Owning The Vehicle   It’s yours. You own the vehicle and you can keep it as long as you want.  You are renting the vehicle and you don’t own it. You can use it, but you must return it at the end of the lease.
Up Front Cost     You must pay the full cash price, or a down payment, and any taxes, registration, and extra fees. The costs of leasing include a deposit of up to 9 months, the first month's payment, taxes, and other fees.
Monthly Payment   Monthly loan payments plus interest, finance charges, taxes, and fees. Loan repayments are higher than a lease because you are paying off the full purchase price of the car.  Lower monthly payments since you pay for the car's depreciation value during the lease term. 
Value of the Car   Over time, the car will depreciate but you can sell it for the cash value whenever you want.  The future value doesn’t affect you since you don’t own the vehicle.
Mileage  It’s your car so you can drive it as much as you like. The more you drive it, the less it’s valued at the time of sale.  Leasing a car usually includes a mileage limit of 12-15,000 miles per year (Sometimes negotiable). If you exceed the limit you’ll have to pay charges.
Wear and Tear   Wear and tear might only lower the car's resale value, and they are your responsibility to fix and pay for. You could also ignore it if its minor.  With a lease, you’ll most likely be held responsible for small wear and tear. You will have to pay extra depending on what the wear and tear includes.
Ending Your Term   When you finish paying the loan, you have no more payments, and you own the vehicle.  At the end of your lease term (often 2-3 years) you can choose to return it, purchase it, or lease/buy another car.
Customizing the Car     Since you own the car, you can do with it what you like. This may affect the warranty and resale value, but it’s your choice. When you lease, you can’t make modifications (if you do, they will need to be changed back) or you’ll have to pay for any damages or changes.  

Lease Vs Buy: Who is it good for?

You may still be stuck on deciding which is the best option for you, so here’s another chart breaking down why leasing or renting might be good or bad for you. At the very least, you’ll know all of your options so you can make the right choices when looking to buy or lease your next Subaru.

  Leasing  Buying 
Good for you   You are a young college student and strapped for cash, and you need low monthly payments  If you drive more than 15,000 miles a year and expect regular wear and tear.
   If you want the perks of being on the cutting edge with the latest technology like lane control, automatic braking, and advanced touch screens.  If you plan on holding onto the car for a long time and it’s a long-term buying decision.
   You are trying to save as much money as possible right now and the cheapest monthly option is your best bet.  If you want to own the car outright so you can sell it later and earn back some of the cost.
     You want to make modifications to the car.
  Leasing  Buying 
Bad for you   If you know you’ll drive more than 15,000 miles because leases have mileage limits and charge fees if you go over.  You want to drive the latest and best cars but without having to purchase a brand new car upfront.
    If you want to own the car and make adjustments to it over time.  You want to change cars every 2-3 years and drive the latest cars.
   If you want to keep the car for a long time (more than 3 years) and expect general wear and tear.  You can’t afford expensive loan repayments or a down payment on a vehicle.

Let’s Sum Up: Subaru Lease Vs. Buy

If you want to keep a car long term, then buying might be the best option. Although loan payments are higher than lease payments, you get to keep the car at the end of your term. With a lease, you must return the car or purchase it at the end of your term.

Leasing has many benefits especially if you want a brand new car and you love new technology. If you want to drive the latest car and you’re excited to change to a new car every couple of years, then leasing is a great option.

Refer back to the charts above to get a clear understanding of the differences and whether leasing or buying is good for you.

Now that you have a better understanding of the main differences, here are our monthly Lease and Finance Specials available at our Twin Falls car dealership.

Categories: New Inventory, Finance
Tags: lease, financing
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