Leasing gives you the ability to pay for the part
of the vehicle you use, and give you a choice of "purchasing" after
you have driven it for a few years.
Leasing vs. Buying
Which One is Right For Me? Redding Subaru Explains
Should You Lease or Buy a New Subaru Here in Redding?
Our Redding, CA Subaru dealership is all about giving our shoppers plenty of options. That's so you can find the kind of new or used car that makes sense for your travels around the Redding and Red Bluff areas, and you can structure any lease or loan deal that works for the budget you have. By considering the benefits of both leasing and buying, we'll show you which way of financing your next new Subaru Outback, Forester, Ascent or Legacy will make the most sense, and we'll present a number of options so you can combine your specific edition with a down payment and monthly costs that works best. Be in touch today and see if leasing or buying from Redding Subaru is the way to go.
Benefits of Leasing a New Subaru
1. Ability to have a
new car every two or three
years
With
all of the new safety, style and efficiency improvements that have and will
happen, Leasing allows you to stay current and up to date and also allows you
to plan as the costs are predetermined and
fixed.
2. Gap Protection
In the event of a total loss, the whole balance
of the lease/residual is paid off, regardless of the actual market value of the
vehicle, which is all that your casualty insurance will
pay.
3.
Limited Liability
The owner of the vehicle has primary liability.
In the case of a lease, the vehicle owner is the company that leases you the
vehicle, not the driver. The leasing company carries an umbrella policy, which
covers everything over your primary liability
limit.
5. Help in
borrowing
The entire debt does not show on a balance sheet;
therefore, a leased car does not show up as a liability on a loan
application.
6. Tax
Ramifications Have Changed to the Benefit of a Business
Owner
The bigger the lease payment, the bigger the
deduction, provided that the vehicle is used more than 51% of the time for
business.
7. No depreciation
risk
The
guaranteed future value of the vehicle is the amount deducted at the beginning
of the lease. It is also the expected value of the vehicle at the end of the
lease. You have the term of the lease to decide if you want to complete the
purchase.
- If the guaranteed future value compared to the
actual market value at the end of the lease favors you, you complete the
purchase.
- If it doesn't favor you, you simply turn the
vehicle back to the lessor.
8.
Sales Tax
Savings
The only thing better than a tax deduction is
never having to pay the tax in the first place.The tax advantage of leasing is
that you only pay tax on the monthly payments. For example, you would
pay 8-10% of 100% in a buy situation, or you can pay only the tax on
50% in a lease, based on the guaranteed future
value.
Common Objections to Leasing
1.
"I won't own
it. I have no equity."
That's good, not bad! You won't have any equity
because you won't pay for any equity. That's why your payment is so low. In
order to have equity in the vehicle, or own the vehicle, your payment would
have been much higher. Instead of equity in the vehicle, you have cash. You can
use this cash to buy the vehicle if you want, but you don't have to decide
until the end of the lease. Some assets are good to own, like a house or
stocks, because they have the possibility of
appreciating.
Vehicles
do not appreciate; they depreciate. Would you pay $100,000 for a
house if you thought it would be worth $75,000 in three
years?
2. "I've had a bad experience with leasing or someone I know had a bad
experience."
It's
true. Some people have gotten burned in leasing. It's because they were put
into the wrong lease or it wasn't fully explained to them. Many people were put
into an open-end lease and didn't realize they were guaranteeing the residual
at the end. We don't offer open-end leases. We offer closed end
leases. In other cases, perhaps they exceeded the 15,000-mile per year
allowance or had a charge back for abnormal wear and tear. If they had
purchased the same vehicle and drove the same number of miles, or traded it in
the same condition, they would have experienced the same deductions.
We won't let that happen to you. We tailor the
lease specifically to your needs and let you know what your rights and
obligations are up front.
3. "I drive too many miles" or "I don't drive enough
miles."
If you drive more than 15,000 miles per year you
are an ideal leasing candidate. You can build the extra miles into the lease at
.10 per mile or pay .15 per mile at the end of the lease. Which would you
prefer?
.10
per mile is quite a savings for you. If you buy the same vehicle and drive the
same number of miles, when you go to trade it in, they will deduct .25 to .30
per mile, over 15,000 miles, to get the appraised value. You can actually buy
the miles you need cheaper in a lease than you can from yourself!
4.
"I don't
understand leasing."
Don't feel bad, very
few people do. Worse yet, some think it is renting. Leasing is probably the
most misunderstood consumer transaction in
America.
Unfortunately, what has kept many people from
leasing is the fear of the unknown.
According to a survey by J.D. Power and Associates,
once people have leasing explained and they try it, 93% of them are so
satisfied they lease their next vehicle! We don't view leasing as just another
way to buy a car. We view it more as an insurance policy. It removes the risk
of the vehicle's depreciation. Leasing offers value; ownership does
not.
Benefits of Buying
Leasing any new Subaru is appealing right away for an obvious reason. For well-qualified shoppers, you might not need to put much down, if anything at all, up front. Lease deals generally structure your monthly payments to be lower than you'd have when paying off a new car loan, and since your lease agreement will coincide with your new Subaru's warranty plan, you'll have most service costs covered as well. At the end of your lease term, you'll have plenty of options with what to do with your current Subaru or for finding a new one. You can either buy out your Impreza, Crosstrek or WRX for its remaining value, start a new lease if you want an updated version of the same Subaru, or you can go in a whole other direction.
Of course Subaru cars and SUVs are built to last, so if you're able to put down more up front and can afford higher monthly payments, buying your next Outback, Crosstrek or Impreza will be a smart long-term investment. You'll be amazed by the long-term value of any well-maintained Subaru that you can keep well past the point where your car loan is paid off, and many models from this brand known for reliability and value last well past 10 years on the roads around Redding, Shasta Lake and Red Bluff.
No matter how you finance your next new Subaru, you'll find great value. Visit or be in touch with Redding Subaru today and we'll help you make the best choice.
-
Redding Subaru
481 E Cypress Ave
Redding, CA 96002
- Sales: (530) 221-2436
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