Will You Buy or Lease Your Next Vehicle?

Every shopper looking to take home a new vehicle will face the same crossroads: whether to buy or lease their next car. At Villages Subaru in Leesburg, FL, we offer a fantastic team to help make your shopping experience sublime, as well with a fantastic inventory of new Subaru vehicles for you to browse through. We even feature Morgan BuyPass, a powerful platform that allows you to buy or lease your next vehicle 100% online!

Let's take a look at the benefits and drawbacks of financing vs leasing your next vehicle, and discover which is best for you.

The Good and the Bad Side of Leasing

Leasing is almost like a long-term rental. Instead of purchasing a vehicle and keeping it as long as you'd like, you're solely driving the car for an agreed period of time before returning the car and starting the process over again. If you truly love the car that you're leasing, and you can't bear to part with it, you may have the option to purchase it at the end of your lease period.

Here are the pros of leasing a vehicle:

Low Monthly Payments
Your monthly lease payment is calculated by predetermining the depreciation of your vehicle during the lease period, along with the interest rate that you qualify for.

You’ll Enjoy the Latest Features
Driving a new vehicle every few years has its perks. In addition to enjoying the latest safety and technology features, you'll also drive a vehicle during its most reliable years. Don’t forget about the peace of mind that comes with a bumper-to-bumper factory warranty.

Tax Incentives
If you're leasing a car for business, there are also additional tax incentives that allow you to write off your lease payments to lessen your tax burden.

Although leasing vehicle is a great way to drive the car you love while enjoying a low monthly payment, there are some drawbacks:

Mileage Restrictions
Because your car lease is based on a predetermined amount of depreciation, there is a mileage limit that caps how many miles you can put on your vehicle. If you find yourself driving over the agreed mileage, you'll likely accrue excess mileage fees.

Wear and Tear
In order to avoid excess depreciation, you'll have to keep your leased vehicle and like-new condition. You’ll also have to stay on top of your vehicle's scheduled maintenance while avoiding any type of modifications.

The Ins and Outs of Financing a Vehicle

Financing a vehicle offers a certain type of freedom, because the car is truly yours to keep once it's paid off. Here are a few benefits of financing a car instead of leasing one:

Freedom
Financing a car gives you the freedom of doing whatever you'd like with it. You may maintain the vehicle how you wish, maintain it how you wish, and drive as many miles as you wish. In addition, you're free to modify the car according to your tastes.

Equity
If you have financed a vehicle, and you owe less than it's worth, or it's completely paid off, you can use this equity toward your next vehicle, giving you an advantage over leasing.

Although financing a car gives you certain freedoms that leasing does not, it's not all peaches and rainbows. Buying a car also has its drawbacks:

Higher Payments
Because financing a car involves making payments on the entire purchase price of a vehicle, you could find that your loan payments are considerably higher than what lease payments would have been for the same vehicle.

Depreciation
New cars see significant depreciation in their first five years on the road. While this is often not a problem, if you plan to keep your vehicle for a long period of time, you may find yourself taking a loss if you choose to sell or trade the car shortly after buying it.

Repairs
Once your vehicle's warranty expires, you are on the hook for any mechanical failures that may arise. While this is often not an issue for newer vehicles, older vehicles that may not have been well-maintained could be subject to costly repairs later down the road.

Get on the Road at Villages Subaru Today!

At Subaru villages, we can help you make the right decision when it comes to leasing vs financing a car. We feature a wide selection of vehicles for you to choose from, a helpful team that can provide useful insight, and we offer fantastic specials to help you get on the road with an affordable monthly payment.

Make your way down to Villages Subaru today and discover why drivers in Leesburg, FL, Haines Creek, FL, and Whitney, FL, trust us for all of their automotive needs.