Leasing a new car can be a great option for you for many reasons. Your payment will often be much lower, you don't have to worry as much about maintenance costs, and you get to take advantage of all the latest technology because you get to switch to a newer vehicle sooner! If you're not sure whether you should buy or lease, we put together some information that will help you decide if leasing is right for you.
1. You don't have a lot of cash to put down (or prefer not to)Leases do not typically require a down payment, and you'll only be responsible for the first month's payment, security deposit, miscellaneous fees, and taxes. It may sound like a lot, but it generally comes out to be much less than a down payment on the purchase of a new vehicle. For example, a 2015 Outback Standard 2.5i model that leases for $279/month for 36 months requires $1,979 due at signing*, while the same model at an APR of 1.9% will cost you around $2,000 down, with a monthly payment of $439** for 60 months (or $369 for 72 months). You also get more bang for your buck, since your payments are lower than if you were to purchase.
2. You don't drive very far on average, or use your vehicle for business purposesIf you work close to home or frequent local recreational areas (a definite plus for Idahoans), you won't have any trouble staying within the lease terms. If you use your car for business, you may even claim it as a business expense - Something you can't do if you purchase.
3. You like to replace your car every 2-3 yearsA lease term is much shorter than a car loan; which means you're less likely to be upside-down when you're ready for an upgrade. If you're nervous to commit to a particular model, like to have the most up-to-date technology, or are a first time Subaru driver, this is a great way to try it on for a few years without the commitment. If you do get attached, you can always buy it at the end of the lease for its residual value. What could be better than that?
4. You don't want to worry about maintenance issuesMost leases end before the warranty period expires, saving you the trouble and cost of most large-ticket repairs. On average, you'll save up to $1,200 a year on fees! Most of the time, GAP Insurance is also covered in the terms, in case your vehicle is totaled in an accident or stolen. Adding this to your peace-of-mind arsenal lowers your overall risk and allows you to feel better about your investment.
Leasing isn't right for everyone, but it's nothing to be intimidated by. If you have any questions whatsoever, we're more than happy to answer them all so you can find the perfect fit for your situation. For more information, check out our lease specials or speak with one of our helpful team members today.
*Including $0 security deposit. Tax, title, and registration fees extra.
**Including taxes and fees.
Sources:
http://www.leaseguide.com/lease04