Should I lease or buy?
Subaru Leasing Made Simple
Executive Summary:
When you lease, you're paying for the portion of the vehicle you use during the lease term (usually 24 or 36 months), which often results in a lower monthly payment and the benefits of driving a new Subaru every few years. When you buy, you're building ownership equity in the vehicle with each payment, and can keep it for as long as you'd like after the loan is paid off. Leasing appeals to drivers who prefer newer vehicles and lower monthly payments, while buying is often the better long-term value for drivers who like to drive their Subarus "into the ground."
Interesting fact: approximately 25% of Planet Subaru customers lease, 50% finance, and 25% pay cash.
Frequently Asked Questions:
Who Shouldn't Lease?
This guy. Subaru Motors Finance will not think the plywood spoiler is cool when you return the lease. No one else thinks it's cool either. ;--)
Why are lease payments so much lower than a finance payment?
- You're paying for only part of the car instead of the whole thing.
- Subaru puts a large portion of their incentive dollars on lease specials because people who lease are likely to continue leasing more Subarus over time.
- You only pay sales tax on the monthly payment in Massachusetts, not the whole car.
What Credit Score Do I Need to Lease a Subaru?
There is no minimum credit score required to lease a Subaru. Approval depends on factors such as credit history, income, debt-to-income ratio, and overall financial profile.
Can I Buy My Subaru at the End of the Lease?
Yes. Most Subaru leases include a purchase option at the end of the lease term. The buyout price, also known as the residual value, is established when the lease begins and is listed in your lease agreement.
How Many Miles Are Included in a Subaru Lease?
Typical Subaru leases include annual mileage allowances of 10,000, 12,000, or 15,000 miles per year. The mileage limit is selected at the beginning of the lease and can affect the monthly payment. Shorter and longer mileage options are available.
What Happens If I Go Over My Lease Mileage?
If you exceed your lease mileage allowance, and don't buy out your lease, you may need to pay a modest charge since you've used more of the car than the leasing company expected. If your Subaru has an MSRP under $50,000, the charge is 15 cents per mile, and over $50,000 it's 30 cents. Some people speak of feeling like they're "driving in a taxi" as they get close to their contracted lease mileage, but if you think about it, every mile you drive on a car you bought is costing you money in depreciation too.
What if I return my lease damaged?
This an attractive benefit of leasing. Subaru Motors Finance waives damage charges up to $1,000, up to $300 for worn tires, and up to $200 for missing keys. Had you bought the car, these reconditioning costs would reduce your trade-in value.
Is It Better to Put Money Down on a Subaru Lease?
A larger down payment can reduce your monthly payment, but it is not always necessary. Many customers choose to keep their upfront costs lower and preserve cash for other needs. The right approach depends on your financial goals and budget.
Can I Trade My Leased Subaru or Buy It Out Early?
Yes. We can help you with this process. Depending on the value of the car, just like a regular loan your car may be worth more or less than the payoff amount depending on mileage, condition, used car values, etc.
What Happens at the End of a Subaru Lease?
At lease end, you typically have three options: return the vehicle, purchase it for the predetermined residual value, or transition into another Subaru lease or purchase.
Does Subaru Leasing Include Warranty Coverage?
Yes. Most Subaru leases are structured so that the vehicle remains under the manufacturer's warranty for the duration of the lease term. This helps limit out-of-pocket repair expenses for covered components during the lease period.
Planet helps customers decide whether they should buy or lease their new Forester, Outback, Impreza, Crosstrek, Legacy, WRX, or STi in Cambridge, Plymouth, Brockton, Braintree, and Newton.
* Although every reasonable effort has been made to ensure the accuracy of the information contained on this site, absolute accuracy cannot be guaranteed. This site, and all information and materials appearing on it, are presented to the user "as is" without warranty of any kind, either express or implied, including but not limited to the implied warranties of merchantability, fitness for a particular purpose, title or non-infringement. All vehicles are subject to prior sale. Price does not include applicable tax, title, and license. Not responsible for typographical errors.
