Buy Vs. Lease
There are a lot of misconceptions surrounding new vehicle leases and Serra Subaru of Traverse City is here to help explain the benefits of leasing. One of the biggest problems with purchasing a new vehicle is that its value plummets drastically the moment you drive it off the lot. Not only does this hurt an otherwise sound investment, it also opens the door to the difficult position of negative equity. Leasing offers solutions to these significant issues while also saving substantial money on monthly payments. When leasing a new Subaru, you are only required to pay for the portion of the vehicle's life specified in the terms of the lease. This allows for much lower costs up front than what comes with purchasing as well as far lower monthly payments. Since it is rare for a manufacturer warranty to expire during a lease term, you always have a vehicle covered under warranty. Once the lease term expires, you will be in prime position to jump in the next big thing from Subaru without the hassle of negative equity or being stuck in a frustrating conversation regarding the value of your trade in or trying to pay off your car loan early. Leasing has come a long way and is now an excellent option for anyone who appreciates all of the benefits of always driving a new Subaru without the inherent downside of purchasing.
Buying |  | Leasing |
|---|---|---|
| Sizable down payment | MONEY DOWN | Less up front money |
| Higher monthly payment | MONTHLY PAYMENT | Lower monthly payment (up to 60% lower) |
| Negotiated trade-in value | TRADE-IN | No trade in hassle or negotiation |
| Responsible for maintenance costs after warranty expires | WARRANTY | Less maintenance Typically always under warranty |
| GAP protection not included added expense to purchase | GAP PROTECTION | GAP protection included |
| Stagnant technology based on what was in effect at time of purchase | TECHNOLOGY | Technology obsolescence protection |
| No loyalty incentives | LOYALTY | Lease loyalty incentives |
| Eligible for all dealer incentives | INCENTIVES | Eligible for all dealer incentives |
| Potential negative equity if you sell your car before it is paid off | EQUITY | No chance of negative equity |
| Not required to maintain vehicle, but since you may eventually own it, why wouldn't you? | PROGRAM MAINTENANCE | Responsible for program maintenance per manufacturers recommendation or you may be charged excess wear and tear |
| The negotiated price of a new vehicle is the same | VEHICLE PRICE | The negotiated price of a new vehicle is the same |
| Insurance payments are the same | INSURANCE | Insurance payments are the same |