Leasing vs Buying a Subaru in Fresno, CA
Should you buy a new Subaru or get a Subaru lease?
Find out the best option for you at Lithia Subaru of Fresno
Monthly Payments
Leasing
Monthly payments are usually lower when you lease a Subaru. Why? When you lease a Subaru, you only pay for the Subaru's depreciation, not the full purchase amount of the car. Keep in mind that other payment components are associated with leasing. These components include rental charges, sales tax, use tax and other related fees.
Buying/Financing
Monthly payments are higher when you buy/finance a Subaru because you are paying for the entire purchase of the vehicle plus taxes, fees, etc. However; at the end of the loan term, you will own your Subaru.
Vehicle Return
Leasing
When your lease term is up, you can return your Subaru or "walk away" from your lease. The latter option does involve some end-of-lease costs. After the end of the lease, your next steps are up to you. You can lease another Subaru or buy.
Buying/Financing
When you are finished paying off your Subaru, you OWN it! The next step is up to you. You can sell your Subaru, look into the Trade-in Program or keep your Subaru for as long as you want!
Beginning Costs
Leasing
At the beginning of a lease you may pay cap cost reduction, government or lessor charges, insurance, first monthly payment, security deposit, any prior lease or credit balance.
Buying/Financing
At the beginning of a loan term you may pay the full vehicle price or a down payment. You will have to pay sales tax or other state taxes, government or lender charges, insurance, first monthly payment, a security deposit, prior vehicle loan balances, or a prior credit balance.
End Costs
Leasing
The total cost of leasing a vehicle is generally lower than financing. This is due to lease savings on depreciation and gap coverage. However; it is harder to build equity when you lease.
Buying/Financing
The total costs for financing a vehicle are generally more than leasing. However; at the end of the loan term you own your vehicle.
GAP Coverage
Leasing
GAP coverage is usually included in lease agreements. If it is not, you can usually purchase it.
Buying/Financing
When you are done with your loan, you get to keep your Subaru! You'll have full ownership after your final payment. If you pay the full price in cash, you automatically own your Subaru!
Who owns it?
Leasing
When the lease term is up, you will have to return your lease, buy it or sell it. If you wish to purchase your Subaru at the end of the lease, you must do so at the end of the lease. While the Subaru is leased, the title will be in the lessor's name. During the lease term, it is your job to insure, maintain and register the vehicle.
Buying/Financing
When you are done with your loan, you get to keep your Subaru! You'll have full ownership after your final payment. If you pay the full price in cash, you automatically own your Subaru!
Mileage
Leasing
Lease payments are based on a set number of miles. If you exceed the set number of miles on your lease, you will have to pay charges for additional miles. If you think that you will drive a considerable amount, you may want to increase the miles on your lease. This will increase your monthly payment.
Buying/Financing
Your loan won't restrict you on the number of miles you drive. However; the more Subaru miles you have, the lower the value of your Subaru.
What if I move?
Leasing
Some lease requirements restrict you from moving out-of-state with the vehicle. If you are considering a future move, you may want to check the terms of your lease closely!
Buying/Financing
When you finance a vehicle, you aren't usually restricted from moving around within the country, but you may be restricted from moving outside the country.
Rates
Leasing
There is NOT a Federal law that requires a standard calculation and disclosure of a lease rate.
Buying/Financing
There is a Federal law that requires a standard calculation for disclosing Annual Percentage Rates (APR)
End of Lease/Loan
Leasing
When your Subaru lease is up, you have the following options:
- Return the vehicle
- Trade or sell the vehicle
- Purchase the vehicle
- Arrange for a third party to purchase it
Buying/Financing
When you are done paying off your loan, you can trade-in your Subaru or you can keep it.
Wear and Tear
Leasing
When you lease a vehicle, you may have to pay for wear charges when you return the vehicle. Most leases also have specific maintenance requirements.
Buying/Financing
When you finance a vehicle, you won't have to pay for wear and tear at the end of your loan term. BUT, if your vehicle has excessive wear it will lower the value of the vehicle and affect the trade-in or resale value.
*This information is meant to inform customers and make general comparisons about buying and/or leasing a vehicle. It is not meant to sway a customer towards buying, or towards leasing. This chart does not reflect a specific lease or loan. The information on this page is adapted from an article on Edmunds about leasing vs. buying.