Should I Lease Or Buy My Next New Car In Maine?

You know that you want a new Subaru, but how should you pay for it? Most people have heard of loaning, when you purchase the vehicle through a lender and once you pay it off than the car is yours, but leasing is also a viable option. So how do you choose? Read our pros and cons list below and decide for yourself.

Leasing Option

  • Pros
    • Monthly payments are generally lower in a lease
    • Low, or no, down payment required
    • You get to drive a brand new car for less money
    • Due to the leases factory warranty, you end up paying less in repair and maintenance costs
    • You get a new car, once your lease ends, every two to three years
    • At the end of your lease, you don't have to figure out who you're going to sell your car to
    • You may pay less in sales tax
  • Cons
    • You make payments monthly, but you don't own the car at the end of the lease, unless you decide to buy it
    • Most leases have a 12,000 mile a year mileage limit. Go over and you could be faced with some pricey fees
    • In the long run, leasing is more expensive than loaning
    • If you experience excessive wear and tear those fees aren't too far away
    • Terminating your loan early will cost you fees as well

Loaning Option

  • Loaning Pros
    • Once you finish your payments, you own the car
    • Because it's your car, you can modify it however you please
    • Over the long run, you save more money when you buy a vehicle
    • You can sell your car whenever you want without having to pay fees
    • Ready for a new car? Use your current one as a trade-in
  • Loaning Cons
    • Most loans require a higher down payment than a lease
    • At the beginning, your monthly car payments will be higher
    • When the new car warranty expires you will have to take care of the maintenance and repairs on your own
    • A new car depreciates in value as soon as you leave the lot, so you will lose money when you re-sell.

So Which One Should You Choose?

There is no right or wrong answer. Either option is a great choice, it just all depends on your preferences. If you are in it for the long haul, then you probably will want to purchase your vehicle. If you want the latest and greatest vehicles, than most likely leasing would be a better option. Whatever you do decide, or if you have any questions, don't hesitate to visit our Charlie's Subaru dealership, located in Augusta, Maine, and serving Portland, Auburn, Bangor, and South Portland. We would love to help you with all of your lease vs loan possibilities!

Categories: Finance
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