Read below to learn more
about financing options when purchasing a vehicle at Williams Subaru, and be sure to contact our Finance Department at (888)
703-8351. Also, by filling out our credit application, you can get
pre-approved for financing at our Subaru dealership in Charlotte today!
Buy Or Lease?
It's a common dilemma: buy versus lease - to buy or lease a car, which is better? Everyone who has ever considered leasing has had this question cross his or her mind.
So What Is The Answer?
The answer
is - it depends. It's not possible to simply say that one is always
better than the other because the answer depends on the specifics of
each individual situation.
Leases and
purchase loans are simply two different methods of automobile
financing. One finances the use of a vehicle; the other finances the
purchase of a vehicle. Each has its own benefits and drawbacks.
When making
a 'lease or buy' decision you must look not only at financial
comparisons but also at your own personal priorities - what's important
to you?
Is having
a new vehicle every two or three years with no major repair risks more
important than long-term cost? Or are long term cost savings more
important than lower monthly payments? Is having some ownership in your
vehicle more important than low up-front costs and no down payment? Is
it important to you to pay off your vehicle and be debt-free for a
while, even if it means higher monthly payments for the first few years?
So we
find out that making a lease-or-buy decision is not quite cut and dry.
There are some things you need to consider. Let's take a look at some of
these things now.
First, it's
important to understand that buying and leasing are fundamentally
different, not just two versions of the same thing.
Buying & Leasing Are Different:
When you buy, you
pay for the entire cost of a vehicle regardless of how many miles you
drive it. You typically make a down payment, pay sales taxes in cash or
roll them into your loan, and pay an interest rate determined by your
loan company, based on your credit history. You make your first payment a
month after you sign your contract. Later, you may decide to sell or
trade the vehicle for its depreciated resale value.
When you lease, you
pay for only a portion of a vehicle's cost, which is the part that you
"use up" during the time you're driving it. You have the option of not
making a down payment, you pay sales tax only on your monthly payments
(in most states), and you pay a financial rate, called money factor, which
is similar to the interest on a loan. You may also be required to pay
fees and possibly a security deposit that you don't pay when you buy. You make your first payment at the time you sign your contract - for the
month ahead. At the end of the lease term agreement, you may either return the vehicle,
or purchase it for its depreciated resale value.
Further Similarities & Differences On Buying vs. Leasing:
