Understanding Subaru Buying vs. Leasing in Covington, LA
Buying vs. Leasing
Car shoppers today are faced with many options when selecting new vehicles. One of the most difficult to understand is the difference between buying and leasing and why one option would be better than the other. Before signing on the dotted line, there are several factors you should consider.
Defining Buying and Leasing
When debating Subaru buying vs leasing in Covington LA, you must grasp the actual definitions of the terms. When buying a vehicle, you legally own the vehicle and can do whatever you want with it. That simply means accessories can be added, physical changes can be made that may alter the vehicle's value, and the vehicle can be kept if the owner wishes to keep it.
Subaru leasing in Covington LA, on the other hand, does not actually transfer ownership. Leasing allows you to use the vehicle for the term of the lease, but the actual ownership stays with the lessor, or the dealership. When the term of the lease is up, you must return the vehicle, and it must be in good condition at that time.
Up-Front Costs Differ
Subaru buying vs. leasing in Covington LA each involve different up-front costs. Purchasing a vehicle requires paying the full price of the vehicle or making a down payment with the remainder of the price financed for a specific amount of time. You're also responsible for any state taxes and registration fees. While many of the costs are built into the terms of a loan, the fees are still there.
The up-front costs when leasing are quite different. Subaru buying vs leasing in Covington LA is often decided based on up-front costs. When you choose to lease a vehicle, you will generally have to pay the first month's lease payment as well as a security deposit, down payment, applicable taxes, the registration costs. In some cases, the total up-front costs when leasing will be higher than if the same vehicle was purchased. Since there are other variables, we're always happy to discuss your options.
Monthly Costs Differ Significantly
When discussing the pros and cons of buying vs leasing a new car, monthly payments should always be reviewed with one of our team members. Purchased vehicles require a payment to lower the principal amount plus interest every month. With average vehicle prices going up every year, that monthly payment can be quite high. Many potential new car buyers are put off by the high monthly payments, so it's important you fully understand your choices.
Leasing, on the other hand, will almost always cost significantly less per month, as you're paying only for the projected depreciation over the term of the lease. Depending on the model of vehicle selected, the monthly payments for leasing can be dramatically lower than purchasing the same vehicle.
Another common issue when discussing Subaru buying vs leasing in Covington, LA is the number of miles the vehicle will be driven. Leases limit the number of miles you can drive each year without incurring additional charges. That's an important consideration if you anticipate driving a lot. If you only expect to drive 12,000 to 15,000 miles per year, leasing would be a solid choice.
Since every car shopper's needs will differ to some extent, it's a good idea to discuss all the pros and cons of buying vs. leasing with a dealer representative before making a decision. Our sales experts and financing professionals are well-versed in the intricacies of leases, so feel free to contact a team member for advice. View our inventory online, then give us a call for more information on buying vs leasing your next Subaru.