Does Leasing Your New Subaru Make Sense For You?
There are a lot of factors to consider when making a purchase or lease, so here's a guide - as simple as we can make it - to help in your new car decision. First let's consider the pros of leasing:
Buying vs Leasing: Bath Subaru Will Help Find The Right Deal For You!
Warranty Coverage
Leasing in three-year cycles means you are always under the manufacturer's bumper-to-bumper warranty.
Tax Savings
If you own a business and use your vehicle for business-related travel, there are some considerable tax advantages to leasing.
Lower Payments
Leasing generally allows you to drive a new car with a lower payment than conventional financing.
Mandatory Gap Insurance
covers you in the event your car is totaled, and your insurance doesn't cover the entire payoff. This coverage is provided by the leasing company at no extra charge to you.
Future Value
This largely overlooked feature of leasing gives it a tremendous advantage over financing. Every lease in Maine comes with a "Lease End Value" (LEV) which is guaranteed in the lease agreement. Think of it as a guaranteed future value.
Comparing Numbers
While there are many factors to consider when making the lease-or-buy decision, the best place to start is with the numbers. Do your own calculations, factor in the intangibles and the best decision will emerge.
Looking At The Terms of a Lease Vs. Finance
Here's an example: Jim is considering a new Outback which he can buy for $27,000 plus tax at an attractive finance rate of 1.9% for five years, which makes his payment $503 per month.To lease for three years with no money down, his payment is only $371, a monthly savings of $132. The LEV or price that he can buy the car for at the end of the lease is $16,464.To see if leasing makes sense, we'll compare the total cost to finance - $503 x 60 = $30,180 - with the total cost to lease, then buy - 371 x 36 + $16,464 = $29,820, for a savings of $360. Of course, if Jim finances the $16,464 LEV, the finance charges should be added to get an accurate comparison. One important option that Jim has at the end of three years is dropping the car off and moving on to the next one. If he financed, he'd still have two more years of payments!
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Bath Subaru
116 Main Street
P O Box 220
Woolwich, ME 04579
- Sales: (207)443-9781
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