Buying vs Leasing an SUV

Buying vs Leasing an SUV

Posted on March 19, 2021

When it comes to purchasing a new vehicle, you've got two options: buy or lease. Of course, for many of us, the concept of leasing a vehicle isn't too familiar, so usually one would opt for buying their vehicle and proceeding with an auto loan. That's why we at Rally Subaru wanted to take some time and explain the difference between buying vs leasing a car to help ensure that you're fully aware of the options available to you and know exactly what each means.

Should I Buy or Lease My Next Vehicle?

Once you've found the perfect Subaru SUV, the next decision you'll face is whether you want to buy or lease it. In the battle that is buying vs leasing an SUV, there are winners on either side. It all depends on what your plans are.

If you intend to own your new SUV for 5 or more years and will likely drive more than 20,000 km per year, you're better off buying the vehicle and getting an auto loan. You'll then be able to pay off the vehicle and be able to keep driving for years after making your last loan payment. Owning your own vehicle has the drawbacks of having to pay for all the mechanical fixes yourself but it does have the advantage of no strings attached. Think of it as like renting vs owning your own home; you can change up the paint and you don't have to ask the landlord first. With your car, you can customize it however you like and there are no limits on how much you can drive it in a year.

However, if you'd prefer to own a new car every 2 to 5 years and drive less than 20,000 km in a year, or if you'd like a lower monthly payment on a more expensive vehicle, then leasing is for you. The real plus to leasing is being able to own a new vehicle that's packed with performance and entertainment options all the time. Your monthly lease payments also usually cost less than a monthly auto loan payment. When it comes to repairs, literally everything is covered by the factory warranty so you won't have to pay for anything. The downside is that you do have some fairly rigid rules you'll need to adhere to in order to stay within the terms of your lease.