Gresham Subaru

Should You Lease Your Subaru?

Is leasing a car right for you? This question is hard to answer. It really depends on your lifestyle and your preferences.Certain lifestyles may work better with leasing than others. For instance, if you entertain business clients, leasing allows you to drive a luxury vehicle for less money (and there may be a tax write-off for certain professions). Other people just like to drive a brand-new car every two or three years. So ultimately, leasing isn't only a dollars-and-cents question - it's about personal tastes and priorities.

In a nutshell, leasing makes it easier to get more car for less money. You are essentially paying for a portion of the car, instead of buying the entire vehicle. Don't forget about the value of GAP insurance when you lease, it is included in most lease contracts and can be a wise investment when you purchase too. It is ultimately up to the smart car buyer to weigh the pros and cons, determine what their needs are, and what best suits their lifestyle.

Buying		Leasing
Sizable down payment	Money Down	Less money up front
Higher monthly payment	Monthly Payment	Lower monthly payment (up to 60% lower)
Negotiated trade-in value	Trade-in	No trade in hassle or negotiation
Responsible for maintenance costs after warranty expires	Warranty	Less maintenance - typically always under warranty
GAP protection not included - added expense to purchase	GAP Protection	GAP protection included
Stagnant technology based on what was in effect at time of purchase	Technology	Technology obsolescence protection
No loyalty incentives	Loyalty	Lease loyalty incentives
Eligible for all dealer incentives	Incentives	Eligible for all dealer incentives
Potential negative equity if you sell your car before it is paid off	Equity	No chance of negative equity
Not required to maintain vehicle, but since you may eventually own it, why wouldn't you?	Program Maintenance	Responsible for program maintenance per manufacturers recommendation or you may be charged excess wear and tear
The negotiated price of a new vehicle is the same	Vehicle Price	The negotiated price of a new vehicle is the same
Insurance payments are the same	Insurance	Insurance payments are the same