Do you have your sights set on a new Subaru, but are wondering, "Should I lease or buy?" Finding the right financial path to take depends on your situation. That's why Subaru of Mandan has put together this helpful guide to help you compare leasing vs. buying for Mandan car shoppers. Explore the benefits of both, and see which is the best fit for your situation. Then speak with the Subaru of Mandan finance team if you have additional questions

 Benefits of a Lease
 Benefits of Financing
  • Lower Costs: With low or no down payments and lower monthly payments, leasing can be the more affordable option upfront.
  • Advanced Features: With lower payments, you may be able to afford a higher trim level and more features than if you were buying. In addition, you get to upgrade vehicles every few years, meaning you always have the latest technologies. 
  • Warranty Coverage: Stay under the mileage limits, and any issue that crops up with your vehicle should be covered by warranty. 
  • Tax Advantages: Sales tax is lower in most states for leased vehicles, and business owners can benefit from tax deductions as well. 
  • Easy Trade-Ins: Simply bring your vehicle in, pay any fees, and turn in the keys!
  • Ownership: When you own your vehicle you are free to do with it as you please, including making mechanical or cosmetic changes. 
  • Mileage: If you love to hit the open road, you don't have to worry about mileage restrictions when you purchase a vehicle. 
  • Ability to Sell: When you own your vehicle, you aren't locked into a leasing contract and you're able to sell at any time. 
  • Decrease In Costs: While it can cost more upfront, vehicle ownership becomes less expensive over time. Once your car is paid off, you are free of monthly payments. 
  • Financing: If you buy, you are able to refinance your loan after regular payments to get a better rate. 

Questions you should ask yourself

1. How often do you want a new car? 
If you like new vehicle every 2-3 years leasing is your best best.  You will have a lower monthly and down payment.  If you want to keep your car for more than 5-7 years buying could save you money.

2. How much do you drive?
If you put on between 8,000-20,000 miles a year leasing is for you. If you drive a lot less or a lot more you should finance. You get to decide how many miles you put on your vehicle.

3. Will it be a company vehicle?
If you use your vehicle for business you can deduct a portion for taxes when leasing.

4. Do you worry about your resale value?
If you drive your vehicle hard or if you keep it like new you may want to buy. With leasing you have a set trade in value, but when you finance it is up to you for any up keep and how that will affect your trade-in value.