New Car Lease vs Buy

Why Should You Lease a New Car?

If you want to drive newer, safer, more reliable cars or trucks, prefer not make a large down payment every 3-4 years, and also do not drive an exorbitant amount every year, then a new car lease might be the right choice for you. Leasing is ideal for those who prefer to avoid the annoyance of selling and buying each time they want to get into a new car, truck, or SUV.

Why Buy a New Car?

On the other hand, if you prefer long term automotive relationships with a higher sense of commitment and ownership, then buying might be what's best for you. Car-buying is typically best for those who do not mind driving the same car for over five years or even until it's no longer fit for the road.

Lease vs Buy: Which One Is Right for You?

Knowing the pros, cons, and overall benefits of leasing vs buying a car, truck, or SUV is critical. Be sure to acknowledge factors such as vehicle ownership, monthly payments, repair costs, and potential savings when calculating the best new car, truck or SUV financing type for you.

Buying: Ownership vs Leasing

When it comes to vehicle financing, new car or truck ownership certainly comes with many well-known advantages, most associated with entire ownership of the car, truck or SUV. You may not be aware, but, there are also some nice benefits of leasing, as well. It's imperative to consider all financial aspects including monthly payments, down payment, term length, buyout payments, interest rate, depreciation, and maintenance & repair costs, before making a decision. A precise study of your current financial situation, future needs, and your preference for commitment, will likely ensure that you make the perfect choice between leasing and buying a new car or truck.

benefits of leasing vs buying a new car

Monthly Payments

Vehicle lease payments are often less expensive in comparison to car financing and loan payments as the typical lease format is more-or-less renting with the option to buy out at the end of your lease term. Keep in mind when leasing that you are going to need a decent credit score, and will be required to carry comprehensive and collision insurance, though the same can be said for the lower rate auto loans. Although it might add to monthly payments, it's also wise to choose a model with the features you want or need, as personal satisfaction is often priceless.

why leasing a car is smart

Maintenance & Repair

Auto leases often include regular vehicle maintenance & repair. It is important to remember this when projecting monthly costs of leasing vs ownership. Regardless of which make and model you select, mechanic bills are an unpredictable cost that can rapidly add up. And for those who aren't certified mechanics with a hydraulic jack and full toolset in the garage, leasing might be the best option for peace of mind.

analysis of leasing vs buying a car

Repair & Maintenance

Generally speaking, a new car, truck, or SUV lease saves money in the short term with lower monthly payments, while buying gets you a long term investment, meaning full ownership of the value of the car at the time it is traded, sold, or paid-off. For best savings on a lease, avoid lease return fees for going over mileage, terminating the vehicle lease early, or putting on excessive wear and tear. For maximum investment on a financed/purchased vehicle, you can pay it off in a shorter term and also avoid excessive wear and mileage.

LeaseBuy
OwnershipNo OwnershipPride of Ownership
Down PaymentSmaller Down PaymentLarger Down Payment
Monthly PaymentSmaller Monthly PaymentsLarger Monthly Payments
Maintenance & Repair CostsTypically IncludedNot Included
Savings/InvestmentShort Term SavingsLong Term Investment
Finance TermApprox. 2-4 YearsApprox. 3-6 Years
APR %Credit-BasedCredit-Based
New VehiclesAvailableAvailable
Pre-Owned VehiclesNot AvailableAvailable
Vehicle CustomizationNot AvailableAvailable
Poor Credit FinancingNot AvailableAvailable

Subaru Lease and Finance Offers In El Paso TX

Subaru of El Paso knows that choosing the right Subaru car and financing option is never easy. Our team of experienced Subaru lease and finance specialist are on hand to help you make the right choice. Visit us online, by phone, or in-person at our dealership location in El Paso, TX. We look forward to serving you.