Should you Lease or Buy your New Subaru?
Find the best option for you at Lithia Reno Subaru
There are a number of factors in choosing whether Buying or
Leasing a new vehicle is best for you. If you need more information,
feel free to come down to the dealership and talk to us directly about what
suits you and your family, or contact us today.
Your monthly payment is usually lower when you lease a new Subaru.
This is because you only pay for the Subaru's depreciation, which is
its measured market value over time, and not the full purchase price of
the vehicle. However, there are additional costs associated with leasing
including: rental charges, sales tax, use tax, and other related fees.
Monthly payments are often higher when you buy/finance a new Subaru
because you are paying for the entire purchase price of the vehicle.
This includes the state taxes, fees, etc. However, at the end
of the day, you own your Subaru.
There is no Federal law that requires a standard calculation and disclosure of a lease's rate.
Federal law does require a standard calculation for disclosing Annual Percentage Rates (APR) on a vehicle purchase.
At the beginning of a lease you may pay cap cost reduction, government
or lessor charges, insurance, first monthly payment, security deposit,
any prior lease or credit balance.
At the beginning of a loan term you may pay the full vehicle price or a
down payment. You will have to pay sales tax or other state taxes,
government or lender charges, insurance, first monthly payment, a
security deposit, prior vehicle loan balances, or a prior credit
Moving and Mileage Restrictions
Some lease requirements restrict you from moving out-of-state with the
vehicle. If you are considering a future move, you should check the
terms of your lease closely and speak with your dealer regarding
questions. Additionally most leases have a maximum miles per year
allotment for the vehicles with overage charges for additional miles
When you finance a vehicle, you aren't usually restricted from moving
around within the country, but any out of country moves with the vehicle
may be restricted. There are no mileage restrictions or penalties with
your own vehicle. You are free to drive the vehicle as you like.
GAP insurance covers the difference between the actual cash value of a
vehicle and the balance still owed through the financing. GAP coverage
is usually included in lease agreements. If it is not, you can usually
When you are done with your loan, you get to keep your Subaru! You'll
have full ownership after your final payment. If you pay the full price
in cash, you automatically own your Subaru!
When your lease term is up, you can return your Subaru or "walk away"
from your lease. The latter option does involve some end-of-lease
costs. After the end of the lease, your next steps are up to you. You
can lease another Subaru or buy.
When you are finished paying off your Subaru, you OWN it! The next
step is up to you. You can sell your Subaru, look into the Subaru Guaranteed Trade-In Program or keep your Subaru for as long as you want!
The total cost of leasing a vehicle is generally lower than financing.
This is due to lease savings on depreciation and gap coverage. However;
it is harder to build equity when you lease.
The total costs for financing a vehicle are generally more than
leasing. However; at the end of the loan term you own your vehicle.
Wear and Tear
When you lease a vehicle, you may have to pay for wear charges when you
return the vehicle. Most leases also have specific maintenance
When you finance a vehicle to purchase it, you won't have to pay for
wear and tear at the end of your loan term. However, if your vehicle has
excessive wear it will lower the value of the vehicle and affect the
trade-in or resale value.
For more information contact us or stop by our dealership during business hours.
*This information is meant to inform customers and make general
comparisons about buying and/or leasing a vehicle. It is not meant to
sway a customer towards buying, or towards leasing. This chart does not
reflect a specific lease or loan. The information on this page is
adapted from an article on Edmunds about leasing vs. buying.