Auto Loans and Leases Have Different Purposes

Deciding whether to lease or buy a new automobile is a personal decision and should be based on the different needs of the customer.

Leasing a car absolves the consumer from being in debt to a lender. It enables them to maintain a new vehicle as often as they like. The lease contracts are based on the usage of the equipment so the monthly payments are generally cheaper than auto loan payments. There are strict guidelines for managing the car during the contract. Financial penalties are assessed at the end of the lease if these regulations are violated.

An auto loan allows the customer to build equity in the car. They retain ownership of the vehicle after the payment plan is complete. At that point, the current value of the car is theirs to do with as they please. They can use it as a trade in or cash sale.

Come into our facility at Don’s Subaru and speak with a qualified professional to decide whether a lease or auto loan is right for you.

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