Leasing vs. Financing a New Vehicle

Leasing vs. Buying a New Subaru in Fremont, CA 

Leasing vs. Buying a New Subaru at Premier Subaru of Fremont

If you're ready for a new ride, you may be looking at all your options for cruising around Fremont, Hayward, and Milpitas. You know you want a brand-new vehicle, but you don't know if buying or leasing is the best option. The answer is different for each person, but you can lease or buy with Premier Subaru of Fremont.

The Advantages of Leasing

Leasing allows you to make lower monthly payments because you are only paying for the value of the vehicle while you own it. For a three-year lease, your cost is the value for those three years. Since most vehicles have a life much longer than three years, there will be a good portion of the value left.

Once your lease is up, you have the choice to buy it at its current value or trade it in for a new lease. Many times, the lease includes free maintenance, which also saves you money. Plus, you're driving at a time when the vehicle should be mostly repair-free.

Often, buyers can afford a higher-end model with leasing than what they could get when they buy. You can get a vehicle loaded with technology or safety features. When you're ready for a new model at the end of your lease, you don't have the added hassle of selling or trading in your current vehicle.

The main disadvantage of leasing is continually making monthly payments and being limited on mileage. If you drive over the allotted miles, you may have to pay extra. You could end up being responsible for extra wear and tear on the vehicle. Your vehicle is never paid off since you make payments until you get the next lease.

The Advantages of Buying

When you buy a vehicle, it becomes yours when the loan is paid off. You can keep it for as long as you want, then trade it in for a new model. You can sell or trade it in at any time, using the money you get to pay off the loan.

You don't have to pay extra for mileage, which allows you to drive as much as you want. If your vehicle ends up with a few dents or scratches, you won't be penalized. One of the big benefits of buying over leasing is that you can alter it as you want. Add accessories to make it fit your personality and needs, which you aren't allowed to do with a leased vehicle.

The main disadvantage of buying is higher monthly payments. You may not be able to afford as high-end of a model as you would like if you can't afford the payments. You'll also have to deal with selling the vehicle or trading it in when you want to replace it with a newer model.

If you have more questions about leasing or buying or just want to see what your options are for pricing, visit Premier Subaru of Fremont. Let us help you get into a new vehicle that fits your financial goals today.