Should You Buy or Lease Your New Subaru in Portland, Maine? Here are a few tips...

You've got a vehicle all picked out, and you're deciding whether you should buy it and finance, or lease it. Depending on which friends you talk to, you'll get different answers. There is a reason for that. The choice comes down to your lifestyle and your preferences. For some, buying is better, and others, leasing makes more sense. 

At Patriot Subaru in Saco, we'll help you sort it out, based on your needs.  Will you be the only one driving it, or is it a family car? We'll ask if your driving habits are fairly routine or if you like to pick up and go exploring on weekend jaunts. Do you like driving a new car, or are you happy aging along with the car you have?  Financially, are you in a position to put money down, or are you looking to stretch it out? 

Advantages of Car Leasing

• Lower down payment
  
• Lower monthly payment
• You can drive a better car for less money each month.
• Drive a new car every 2-3 years, with more amenities and newer safety features
• Lower repair costs. (With a three-year lease, the warranty covers most repairs.)
• No trade-in haggling at the end of the lease
• You pay sales tax only on the portion of the car you finance.

Disadvantages of Car Leasing

• You don't own the car at the end of the lease.
• Mileage is limited, usually 12,000-15,000 miles a year (excess miles are paid for at the lease termination).
• Leasing is more expensive in the long run (as opposed to buying and driving until the wheels fall off).
• If you "beat up" the car - dings, scrapes, interior wear, you may face added costs
  
• If your lifestyle changes, ie different job,  you will likely have fees to terminate lease early
  

Advantages of Car Buying

• Pride of ownership - you can fix up or customize your car as you please.
• Car buying is more economical in the long run unless you buy and trade-in often
  
• No penalty for driving excess mileage
• More flexibility - you can sell the vehicle whenever you need

Disadvantages of Car Buying

• Higher down payment is typically required
  
• Higher monthly payments
• You're responsible for all service and maintenance once the warranty expires
• The value always depreciating, and your trade may not be worth what you hoped
• You'll never get back the dollars you put into it if you "soup it up".
  

If you want to be in a new car every few years to enjoy all the updated features, and your driving needs are fairly modest and predictable, then leasing may be your best choice.  If you are in a position to be able to pay more upfront and a bit higher each month, and your intention is to use and maintain the car for 6, 7 or more years, than perhaps buying is the smarter long-term economic decision.

Patriot Subaru in Saco is prepared to help you sort it out.  You know your needs, and its our goal to help you find the very best car that can fulfill those needs at the lowest possible cost. Give us a call at 1-866-284-7900.

Leasing vs. Financing: Which Is Best for You?

Residents often enjoy taking test drives and comparing the features and benefits of competing models, but they sometimes find it difficult to decide how to pay for the vehicles they ultimately decide to buy. Paying cash is the most straightforward approach, but it is also the least prudent. Even the best vehicles lose value over time, and it is not wise to invest money in a depreciating asset. Taking out an automobile loan or lease makes much more sense, but which of these two options is the best? Our dealership has a finance center staffed with experienced professionals who can help you to answer that question, and they will do everything they can to get you on the road as affordably as possible.

Reasons to Finance Your Next Vehicle

Taking out a traditional auto loan to pay for a new or used vehicle makes sense for residents who drive a lot of miles or very few miles. Putting more than 15,000 miles per year on a leased vehicle will result in a hefty bill when the lease ends, and leasing a vehicle that will hardly be driven means paying for miles that you will never use. Financing also allows vehicle owners to make modifications without first having to get permission from a lender. If you like to do whatever you want and hate restrictions or limits, a car loan may be your best option.

Reasons to Lease Your Next Vehicle

Leasing has become an extremely popular alternative to car loans in recent years because monthly lease payments are lower than loan payments and people who lease do not have to put a lot of money down. Lease payments are lower than loan payments because they are based on anticipated depreciation over a two- or three-year period instead of the purchase price, but the lessee does not actually own the vehicle. Leases make the most sense for residents who drive between 10,000 and 15,000 miles each year and like to replace their vehicles every two or three years.

End of Lease Options

Leasing can also be a good option for residents who want to buy a new vehicle but do not have much money to put down. This is because leases include an option to buy. If you have a leased vehicle that you are thinking about purchasing, our finance professionals could answer your questions and arrange a loan. If you choose not to exercise your purchase option, you will not be penalized if you return your leased vehicle and it is worth less than the residual value. Lenders base lease payments on projected used car values, and they suffer the financial consequences if they are wrong.

Credit Requirements

Leases used to be much more difficult to qualify for than loans because lessors take more risks than traditional lenders and lessees are not required to put money down, but factory lease programs have changed things. Manufacturers want to move as many vehicles as possible, so they make things as easy as possible for consumers. If you would like to lease your next vehicle but are worried that you may not qualify, our finance professionals will probably be able to help you.

Learn More About Your Options

When you purchase your next car, truck or SUV, you should think carefully before you sign any leasing or financing paperwork. Our team of experienced and dedicated finance professionals will be happy to answer your questions and explain your options, and they will work tirelessly to put you behind the wheel. We work with a wide range of lenders and around the country, and we never give up on a deal. Stop in today to discuss your financing and leasing choices.