What’s best For You, Buying or Leasing a New Car?

by | Nov 20, 2015 | Automotive

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Purchasing or leasing an automobile brings with it certain advantages and disadvantages for each approach. Buying a new Subaru Outback in Frankfort brings more freedom but leasing can allow for a newer and possibly better car within the same budget.

The buying option:

Once you have bought the car it is yours, you can do what you want with it, you can drive it as many miles as you want and you can customize it if you are so inclined. You are not obliged to have it serviced at a defined shop; ownership means complete flexibility.

Buying a new car can have a major impact on your finances. Of course, you can get a loan to cover the cost of the vehicle and pay the loan back over a period of time but with a loan comes interest. The overall cost of is actually higher than the price of the car and it depreciates over the term of the loan. Once you finally own it, the value will have dropped considerably.

The leasing option:

Leasing lets you have a new car without having to pay for it in full. This is an attraction to many, especially those who want a newer and more reliable car on a budget. When you buy a new Subaru Outback in Frankfort  the down payment is usually trade in plus cash, the normal down payment is about  30% of the cars value. When you lease, the cash out is limited to the first month’s payment, a security deposit of some sort, the taxes and registration fees. The total of these costs will be considerably less than what a normal down payment would be for the same car.

A leased car eliminates depreciation, at least as far as the leaser is concerned. This is attractive to those who are concerned about the trade-in value of the car if it was owned.

The major downside of leasing is the mileage cap that is imposed. The lease contract specifies a maximum number of miles that can be driven annually; any miles driven over the limit will be calculated and will have to be paid for when the lease period is up. The lease may also specify a certain standard of service and maintenance as well as dictating where the work will be done.

At the end of the lease period the vehicle can be purchased. The purchase price is usually in favor of the leaser as the car will be valued at Blue Book; if it has been kept it well you can reap the rewards. If you do not exercise this option you simply walk away neither owing nor owning anything.

If you have decided that you want a new Subaru Outback in Frankfort you have the option of either purchasing one or leasing one when you deal with Hawk Subaru in Joliet.

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