The Great Debate: Buying vs. Leasing & What You Need to Know

If you're considering your next car here at Royal Subaru, there are plenty of questions you'll be faced with. However, just as it's important to find the right Subaru model to suit your and your family's needs, so too is it important to decide whether to buy or lease.

Car shoppers near Bloomington and Bedford have these two distinct Subaru financing options, each with their own advantages and differences. We've put together a brief breakdown to help you get familiar with both options.

Why Choose to Lease a New Vehicle?

• Lower Monthly Payments: Your monthly payments for a lease won't go toward paying for the total cost of your vehicle. Rather, they simply cover the cost of depreciation during the lease term. As such, monthly lease payments can end up being significantly lower than those of a loan. Down payments are likewise lower.
• More Frequent Upgrades: Lease agreements usually last two or three years. That means you'll be ready to step into a new model sooner rather than later. If you prefer to stay ahead of the curve with new features and technology, a lease may be a great option.
• Warranty Coverage: Your leased vehicle will fall within the limits of the original factory warranty. This can significantly reduce repair costs if covered parts fail.
• Easier to Get a Newer, Nicer Model: The affordable down payments and monthly payments of a lease may open up vehicles you thought were out of your price range. If the sticker price of your favorite model is too high, consider a lease instead.

The benefits of a lease can be excellent for many drivers, but a few conditions are worthy of note. For starters, lease agreements typically have mileage limits of 12,000 to 13,000 miles per year. Going over the limit can result in extra charges. Likewise, excess wear and tear can cause extra fees. Finally, you won't own your leased vehicle. At the end of the term, you'll have to either give it back to the dealership or buy it.

Why Buy with an Auto Loan?

• Own Your Vehicle: Unlike with a lease, an auto loan gives you ownership of your vehicle. All you have to do is adhere to the terms of your loan and submit monthly payments to your lender.
• Unlimited Miles: Since you own your vehicle, you can drive it as far as you want. This is especially helpful to drivers with long commutes near Martinsville, IN.
• Modifications: Thinking about adding accessories or parts to your car to suit your driving needs or personality? A loan may be the way to go. Owning your car means you can change it however you like without worrying about charges.
• Trade-In Value: Next time you're ready to buy a vehicle, you can use the value of your current one to help with the costs. You can't do the same with a leased car.

Just like a lease, there are a few factors to think about when considering a loan. Up front, you'll notice that monthly costs are higher since you're paying for the entire value of the vehicle. Your initial down payment will likely be higher, as well.

Get Financing Help at Royal Subaru

Whether you're leasing or buying your next car, Royal Subaru is here to help. We can walk you through current lease offers from Subaru or work with a range of lenders to help you secure favorable terms. Just stop by our location near Spencer and Bloomfield IN and let us know which route you're interested in.