Leasing vs. Financing a Subaru
Choosing to drive a Subaru is an easy decision since every Subaru vehicle gives you impressive capability, advanced safety, and outstanding value. But when it comes to deciding between leasing versus buying, the choice gets a little harder. Let’s look at some of the pros and cons between leasing and financing to help you make the best decision.
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Leasing
If you value flexibility, predictability, and convenience, leasing a vehicle may appeal to you. While there are typically limits on your annual mileage, there’s also less commitment compared to financing because you’re only agreeing to lease the vehicle for a limited time period. The payments on your Subaru leased vehicle can also be lower than loan payments. Plus, there are usually fewer upfront costs and major wear and tear repairs. But when your lease is up, you return the vehicle to your local Subaru retailer. That’s not necessarily a negative if you’re interested in always having the most up-to-date technology, as your next brand-new leased Subaru will come with even more cutting-edge features.
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Financing
Financing a vehicle can sometimes result in higher monthly payments compared to a lease. On the other hand, with an auto loan, each monthly payment toward the principal builds equity and once the loan term is over, you own it, and any Subaru owner can tell you: a Subaru is built to be a long-lasting value. There’s also the freedom to add aftermarket customizations to personalize your vehicle’s appearance, which is usually not allowed on a leased vehicle. Financing also gives you the freedom to drive your Subaru as far as you like with unlimited driving miles.
Advantages and Disadvantages of
Leasing vs. Financing
Upfront Costs
Leasing
Upfront costs alone tend to be lower.
Financing
When buying, upfront costs will be higher and you can expect to make a significant down payment.
Monthly Payments
Leasing
Monthly payments are typically lower than vehicle loan payments because you are not paying for the total price of the vehicle. However, the monthly finance charges are higher.
Financing
Monthly payments are typically higher than lease payments.
Maintenance
Leasing
Leased vehicles are typically under a maintenance contract and you only pay for routine maintenance such as oil changes and tire rotations.
Financing
As the owner, you’re responsible for all maintenance. Some loan agreements include more comprehensive service agreements for an additional charge.
Wear and Tear
Leasing
You are responsible for keeping the vehicle in good shape and can be charged extra for excessive wear and tear. These details are typically outlined in the lease agreement.
Financing
Wear and tear won’t affect your loan but could lower the vehicle’s overall value, which would cost you if you eventually trade it in or sell it.
Use/Mileage
Leasing
Leases have mileage limits, typically around 10,000 or 12,000 miles per year. At the end of your lease, you’ll have to pay extra for every mile you go over the limit – usually anywhere between 15 to 30 cents per mile.
Financing
You can drive as many miles as you want, but excessive mileage can lower the vehicle’s resale or trade-in value.
Customization
Leasing
Customizing or changing the appearance of the vehicle can break the lease agreement and lead to additional fees.
Financing
Owners who purchase their vehicles are free to customize and change their vehicles as they see fit.
Ownership
Leasing
You do not own the vehicle, but you make payments to use it during the lease term. At the end of the term, you must return the vehicle unless you decide to purchase it.
Financing
You own the vehicle and make monthly loan payments to pay it off. After completing the payments, it’s all yours.
End of Term
Leasing
At the end of the lease term, you may return, purchase, or trade the vehicle in.
Financing
At the end of your vehicle loan, you own the vehicle and can keep, sell, or trade it in.
Ready for the Next Step?
Lease Loyalty Benefits
Current lease customers may be eligible for some great benefits when you get a new Subaru through Subaru Motors Finance such as getting up to $550 for your first monthly payment from SOA, no disposition fee when you return your current Subaru.
Apply for Financing
You could qualify for preapproved financing, which means you’ll have the information you’ll need to shop for a Subaru you’ll love.
Special Programs
Subaru Motors Finance (SMF) and Subaru of America (SOA) offer special programs to assist Subaru drivers. Ask a participating retailer for details about these programs to see if you qualify, or see our special offers for more details.
Subaru Motors Finance
Whether you choose to finance a new or pre-owned Subaru or lease a new one, we offer several distinct advantages with the Subaru Motors Finance (SMF) program through your local retailer
- Competitive finance or lease options
- One-stop shopping through your local Subaru retailer
- Flexible payment options
- Paperless statements that are convenient, secure, and eco-friendly
- Experienced, professional customer service representatives
- Access to account information when you want, where you want
^The tradename Subaru Motors Finance (SMF) and the Subaru logo are owned by Subaru of America, Inc. (Subaru) or its affiliates and are licensed to JPMorgan Chase Bank, N.A. (Chase). Subaru is solely responsible for its products and services and for promotional statements about them and is not affiliated with Chase or its affiliates. Auto finance accounts are owned by Chase and are subject to credit approval, terms, and conditions.
