Leasing vs. Buying


What works best for you – buying or leasing your new Subaru? Find out which option suits your needs better at Kendall Subaru of Eugene.

There are a lot of factors that go into determining whether leasing or buying your new Subaru makes the best financial and lifestyle sense for you. Here are just a few of the PROS & CONS of both. And there is no universal right or wrong answer. For additional information and advice, please talk to one of our sales specialists and they will help guide you.


With a lease your payments are generally lower per month than when you buy. That’s because you are only paying for the depreciation on the vehicle and not the entire value of the vehicle.

At the beginning of the lease you may pay a cap cost reduction (a down payment that reduces your monthly payment), first and last months payment, license and title fees, and a security deposit.

Leasing payments are based on usage and usually cover 10,000 to 15,000 miles per year. While you can negotiate the number of miles you’ll put on your Subaru per year, if you go over the agreed number of miles over the course of the lease, you will pay a set amount (usually around .25 cents) per mile when you turn your vehicle in.

At the end of your lease, you have several options. You can buy the vehicle at the pre-determined depreciated lease-end amount or you can turn the vehicle in and simply walk away. Please note that auto leases have a WEAR & TEAR clause, meaning the car must be returned in a reasonable condition or you will be charged for repairs.


If you like to get a new car every two or three years, leasing can make sense for you. If you can write off your vehicle as a business deduction, leasing can be for you. If you just want a lower payment and don’t choose to put money down on a new vehicle, leasing can work for you. If you don’t want to take money out of savings, or an investment account to put toward a vehicle, leasing could be your solution.


You don’t own the vehicle, which means you are not likely to build equity in the vehicle. You are responsible for maintaining the manufacturer’s maintenance schedule, and you are responsible for the vehicle condition. If you go over the mileage limit you will have to pay additional charges.


Generally speaking, unless you pay the full vehicle price when you buy your new Subaru your payments may be higher for a longer period of time than a lease. Various factors like – the amount you put down, trade-in value (if applicable), number of payments (length of financing term), and your loan interest rate will affect the amount you pay each month. The good news, at the end of the loan – you own your vehicle. Also, you are in control of mileage, condition, and maintenance of your vehicle. Just remember, your vehicles resale will be effected by condition and mileage.


If you keep you vehicles for a long period of time, buying your new Subaru makes more sense. At the end of your loan (if applicable) you’ll own the vehicle outright and you can do with as you please. You can put as many miles on it as you’d like and you can take care of it as you wish. And as you make your payments you are increasing equity in the vehicle in most cases.


You could possibly be tying up funds that you may want to use for other purposes.


Only you can determine if buying or leasing is the right solution for you. Talk with any of our new car sales specialists and learn more, either way, we guarantee you’ll love driving a new Kendall Subaru of Eugene.