Leasing Vs. Financing – Which Is Right For You?

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Discover Whether You Should Lease or Buy!

If you’re shopping for a new vehicle, one of the main questions that a salesperson will ask you is if you’re intending to lease or buy your next vehicle. Here at Subaru of Fort Myers, we feature a wealth of new vehicles for you to choose from, as well as an abundance of new specials for you to take advantage of.

However, the big question is: will you lease or buy your next Subaru? Come with us as we explore the pros and cons of leasing and financing a vehicle and find out which method of ownership is right for you!

Here’s the 411 on Leasing a Car

When you finance a vehicle, you’ll obtain an auto loan for the purchase price, plus any taxes, fees, and additional protections that you want added into the loan. Depending on your credit score, an annual interest rate, known as APR, will be added onto your loan amount, and this amount will be split into equal monthly payments.

The great thing about financing a car is that your vehicle is yours to keep; you can customize it, you can sell it, you can do what you want with it.

While financing sounds like the easy choice, it does come with some drawbacks.

A new vehicle experiences the most depreciation within its first five years of its life on the road. When you finance a vehicle and you want to trade in the car a few years after purchasing it, you may find that it's worth a lot less than you paid for it.

Unlike leasing, where you only pay on the depreciation of the vehicle plus taxes and fees, financing a vehicle requires you to pay on the entirety of your loan.

Here are the the Ins and Outs of Financing

Leasing a vehicle is almost like a long term rental. With a vehicle lease, you’ll take a brand new car and drive it for a few years before returning the vehicle and starting the process over again. Drivers love leasing because it allows them to drive late model vehicles every few years while enjoying a low monthly payment. Leasing also allows you to avoid costly repairs because your vehicle will likely be under warranty throughout the entirety of your lease.

Lease payments are generally lower than auto loan payments because unlike leasing, which involves making payments on the purchase price of a vehicle, lease payments only involve making payments on the depreciation of the vehicle, plus taxes and fees.

While everyone loves lower payments, leasing isn’t for everyone:

Because leasing is based on a predetermined depreciation estimate, there will be an annual mileage cap. If you drive more than 12,000 miles per year, leasing probably is not for you.

Remember when we mentioned predetermined depreciation? This also means that you’ll have to keep your vehicle in like-new condition and avoid any aftermarket modifications. You’ll also have to keep your vehicle maintained according to factory recommendations.

Get on the Road in Your New Subaru Today!

Ready to lease or buy your next vehicle? At Subaru of Ft. Myers, we feature a wealth of new vehicles for you to choose from, along with fantastic specials to help you enjoy affordable monthly payments. We’re located in Ft. Myers Whether you’re looking to lease or buy, trust the experts at Subaru of Ft. Myers, FL today!