There are benefits to both.
Having helped over 4000 customers has allowed me to learn the best way to help a customer decide what works best for them.
Each customer, each purchase and each lease is different and you need to work with someone who knows both inside out.
Monthly Payments
Leasing
Your monthly payment is usually lower when you lease a new Subaru. This is because you only pay for the Subaru's depreciation, which is its measured market value over time, and not the full purchase price of the vehicle. However, there are additional costs associated with leasing including: rental charges, sales tax, use tax, and other related fees.
Buying
Monthly payments are often higher when you buy/finance a new Subaru because you are paying for the entire purchase price of the vehicle. This includes the state taxes, fees, etc. However, at the end of the day, you own your Subaru.
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
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.
Mileage
Most leases have a maximum miles per year allotment for the vehicles with overage charges for additional miles driven, but can be very reasonable at end of lease.
Buying
There are no mileage restrictions or extra mileage costs when your own vehicle. You are free to drive the vehicle as you like.
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
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 Subaru Guaranteed Trade-In Program (Yes, I do participate in this program) or keep your Subaru for as long as you want!
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
The total costs for financing a vehicle are generally more than leasing. However; at the end of the loan term you own your vehicle.
Wear and Tear
Leasing
When you lease a Subaru from "Uncle" Bill OGorma and Royal Subaru, you may not have to pay for wear and tear charges when you return your Subaru. In most cases we can help forgive up to $1000 in end of lease wear/tear/damage.
Buying
When you finance a vehicle to purchase it, you won't have to pay for wear and tear at the end of your loan term. However, 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 information does not reflect a specific lease or loan. See "Uncle" Bill OGorman at Royal Nissan Subaru, 3901 Rte 281, the West Rd, Cortland.
For a personalize lease vs buy comparison for you and your family, dial 607-543-1215 to schedule a confidential meeting with Bill OGorman.
