Is Financing or Leasing The Right Choice For You?

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Is Financing or Leasing the Right Choice for You?

Have you picked out the new Subaru vehicle that's right for you? Are you still searching for the Subaru car or SUV that matches your Warrington or Chalfont driving needs? Whatever stage of buying a vehicle you're on, you may still have the question: Should I lease or finance my new vehicle?

While both leasing and loaning are valid forms of vehicle financing, they do come with different benefits and disadvantages. To help our Doylestown and New Hope area drivers determine which option they should choose, we've come up with a few key differences between the two.

Pros and Cons of Leasing a New Subaru Vehicle

Leasing is an excellent choice for drivers who love the latest vehicles on the market, less commitment, and more peace of mind about maintenance issues. Here are some pros and cons that leasing provides.

Leasing Pros

  • Lower Monthly Payments - Many leases offer lower monthly payments than car loans. You'll most likely also find lower upfront costs, including lower down payment requirements, and potential tax advantages.
  • Newer Cars and Less Commitment - Most leases come with a two-to-four-year lease attached, which means you can get a brand-new vehicle within a few years. This allows you to receive the latest bells and whistles and drive around Doylestown in the newest Subaru models.
  • Less Worry About Repairs - Because your vehicle is brand-new, it comes with a new car warranty that will cover almost any repair issue. While you'll still need to keep up with the necessary maintenance, there may be warranty advantages to those as well.

Leasing Cons

  • Mileage and Other Restrictions - Because it is a lease, there will be a set mileage limit in place. You may also have wear and tear restrictions that you'll need to consider when purchasing your vehicle.
  • No Ownership Benefits - Because you don't own the vehicle, you can't make any changes to the vehicle. At the end of the lease, you also won't own your vehicle, which means you won't build equity throughout your loan.
  • Continuous Payments - You will always have to pay a monthly payment on your lease and ending a lease early can be a costly task.

Pros and Cons of Financing Your New Subaru Vehicle

Drivers who choose to finance a new vehicle will love the freedom it provides, and the long-term money saved. Here are some pros and cons that come with financing your new Subaru vehicle.

Financing Pros

  • You Own Your Vehicle - Because you are the car's owner, you can add whatever you would like to the vehicle. This means accessories, color choices, and other modifications. You can really make your car your own without having to follow anyone's rules or regulations.
  • Long-Term Savings - Even though loaning a vehicle is more expensive up front, it is less expensive in the long term. Once you have paid off your loan, you will own the vehicle without any monthly payments attached. You'll also be building equity with each payment, giving you a better trade-in option.
  • No Restrictions - When you loan a vehicle, you don't have to worry about mileage restrictions, wear and tear penalties, and other lease additions.

Financing Cons

  • Higher Monthly Payments - Most loans tend to have higher monthly payments than lease offers. You'll also most likely need a down payment for your loan.
  • Maintenance Costs - Once the new car warranty expires, you'll be responsible for every repair that's required. This can lead to costly service bills as the vehicle gets older.

Contact Fred Beans Subaru to Discuss Your Lease and Financing Options

If you have questions about your next vehicle purchase, we would love to hear from you. Feel free to contact our team or stop by our finance center in Doylestown today. While you're here, we can also show you around our current new inventory and review any monthly specials that may be available.