Buy vs. Lease

Deciding whether to buy or lease your next Subaru? Learn more about the benefits of each here at Anchor Subaru - Your trusted local North Smithfield, RI Subaru dealer serving Providence, Cranston, and Johnston, Cumberland, RI and Attleboro, MA

So, you've chosen the ideal Subaru for you. You've picked the model, trim, and even the color that best suits your tastes, and you're wondering, "What's the next step?" Well, the next step is determining whether you want to buy your Subaru or lease it. Now, this is a crucial decision and it can seem a bit daunting at first. But don't fret, because here at Anchor Subaru, we're well-positioned to help you explore your Subaru financing options. In fact, we've even put together a brief breakdown of the benefits of buying and leasing Subaru models at our North Smithfield, RI dealership to help you learn more about which option is right for you.

Great reasons to lease here at Anchor Subaru

  • Love having a new car every few years? With Subaru lease terms ranging from 24 to 48 months, you'll have the opportunity to drive the brand's latest and greatest more often than you'd think!
  • Subaru leases fall under the manufacturer warranty, so you'll find that most regular maintenance and service is covered.
  • Leasing a Subaru offers lower monthly payments than purchasing a comparable vehicle with a car loan. What's more, with our competitive special offers on Subaru financing, you may just find that you can afford to drive a whole lot more car for your cash!

Great reasons to buy here at Anchor Subaru

  • With a Subaru lease, your monthly payments pay the depreciation on the vehicle for the term that you drive it. When you purchase a Subaru car with a car loan, you're actually paying for ownership of the vehicle.
  • Want to keep your Subaru car for a good long time? If so, buying is the way to go, as owning it outright will allow you to keep it longer than a lease term would allow.
  • Leasing a Subaru typically means agreeing to a mileage limit. However, when you financing your Subaru with a car loan, you won't have a limit, meaning you'll be able to drive it for as long as you like

Visit us at Anchor Subaru in North Smithfield, RI to explore your Subaru leasing and purchasing options further today!

Whether you want to lease or purchase your next Subaru, we'd love the chance to earn your business here at Anchor Subaru as we have done with so many drivers throughout the North Smithfield, Providence, Cranston, Johnston, Cumberland, RI and Attleboro, MA areas. If you'd like to get the ball rolling, feel free to apply for financing online or stop by our North Smithfield, RI dealership to browse our selection of new Subaru vehicles for sale today!

Why Don't more people lease vehicles?

The biggest objection most people have to leasing is that they don't understand it.  People tend to fear and avoid things they don't understand, especially, especially when they are in an uncomfortable environment (such as a dealership).  Here's a quick contrast example between financing and leasing a $20,000 Subaru for a 60 month loan and a 36 month lease:

  Loan:                                                                          Lease
$20,000                                                                        $20,000
Bank collects all $20,000 from you                               Bank Collects $8,000 from you over 36 months 
over 60 months plus interest                                         plus interest $12,000 (residual)

Monthly payment  $380                                                 Monthly payment $260


When you get a $20,000 loan the                                When you lease, the bank also pays us $20,000
Bank pays us $20,000 for your                                    and keeps the title.  What's the difference? with
Car and keeps your title until                                        a loan, the bank wants back 100% of the $8,000
you pay off the entire $20,000                                      plus interest (the difference between $20,000
plus interest.                                                                 and the residual of $12,000.  The "residual" is the
                                                                                      pre-determined value of the lease vehicle after
                                                                                      36 months)



Common Misconceptions about leasing:

  • "With a lease,I don't own anything" When you take out a loan, do you get a title? Not until you pay off the whole amount . So you don't really "own" it until it's paid off.  A lease is the same way.  The bank retains the title and if you want to own the car you just pay off the lease.
  • "With a loan, I Own the car at the end." True. But not much of car.. a five year old car with higher miles.  If the lease saves you $120 a month for the term of a 60 month loan, that's $7200 that you have in your pocket instead of your car.  (and that's assuming you don't make some additional interest on it by investing it or putting it in the bank.)
  • "It's better to Own than rent."  The reason you should buy a house instead of rent is because the house usually appreciates in value.  But cars depreciate. And they have significant costs.  Most people who lease never pay for brakes or tires, for example, because they don't keep the car long enough to wear them out.  If you finance your car for five years, you'll certainly need tires and brakes at least once, plus other repairs.
  •  "The dealer makes more money when I lease" This is true, but not in the way that you would think.  Whether you buy or lease you pay the same price for the car.   However, we do sell more cars overall because research shows that lease customers are more likely to become customers for life (and why wouldn't they? They're always driving a newer, safer, more reliable car for a smaller payment.)  
  • " I can't trade the car in before the lease ends." Actually, you can.  After driving your car for 30 months, don't you think it's less expensive to get out of a 36 month lease that's almost up rather than a 60 month loan that's only half paid? approximately 40% if people owe more on their loan than their cars are worth -- Not only do they bot have equity, they are actually "upside down"
  • "I don't want a new car every few years.  I like to buy new, pay the car off, and have the car without payments."  While you may not have a payment in those out years, there are still costs.  You'll be spending more in repairs to keep an older car on the road, older cars use more gas and pollute the environment more, have fewer safety features than modern cars, and are more likely to break down and leave you in a dangerous situation.
  • "I drive too many miles." Cars depreciate about 25 cents per mile.  Yet with a lease, you can buy additional mile upfront for only 10 cents per mile.  At the end, if you go over, they're only 15cents.  People who put a lot of miles on financed cars usually end up owing more than they are worth - not only do you not own your car , it owns your!
  • "I had a bad experience with a lease because I drove over the miles and I had to write a big check at the end." If you had financed the car instead, don't you think that piling on extra miles would have substantially reduced the value of the car at trade in time? Cars depreciate about 25 cents per mile but they only cost 15 cents on a lease if you go over.  If you buy them up front, they're only 10 cents!  So if you're concerned about driving a lot of miles, we'll build them into the lease for you.   Either way, you're better off putting too many miles on somebody else's car!
  • "I had a bad experience with a lease because I had to pay for damage at the end."  People who trade in financed cars with damage have to pay too - because they get less at trade - in time .  You don't get a bill in the mail for it.  Furthermore, our experience with lease returns is that the Subaru inspectors are pretty lenient about minor damage because they want you to get another lease. 

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