When it comes to leasing vs. financing a vehicle at Garcia Subaru North, the biggest difference is what exactly you are paying for and the responsibilities that come with it. Here are the highlights of each financing solution.


When you lease a vehicle, you're paying to use the vehicle for a certain amount of time before returning it or buying it. Your down payment consists of the first month's payment, a refundable deposit fee, down payment, registration fee, taxes, and other fees.

Lease payments are lower because you're only paying for depreciation during the time of lease plus interest, rent, taxes, and other fees. You can end the lease early, but there will be early termination fees. Future depreciation of the vehicle doesn't affect you. However, you don't receive any equity from it.

A negotiated annual limit determines how much you can drive the vehicle, and it will cost extra if you go over that limit and if the vehicle incurs excessive wear and tear, you will be required to pay for it. Before returning, any modifications or customizations will need to be removed, and any permanent damage will have to be paid for by you. Ou also have the option to buy out the vehicle at the end of the lease term.


Once you sign the paperwork, the vehicle is yours to do with what you wish. Down payments normally include the cash price or a down payment, taxes, registration fees, and other possible fees. Loan payments are normally more expensive because you are paying for the entire value of the vehicle. You can sell or trade the vehicle at any time you want, and the money that you make off of it can go toward the loan.

The vehicle will depreciate and lose its value over time, but the equity is yours to use however you like, and there are no restrictions on how far or how much you can drive the vehicle as long as you understand that lower mileage reduces resale. Any damage to the vehicle only affects resale value.

Visit Garcia Subaru North to Learn More

Whether you finance or lease your vehicle, knowing exactly how both systems work will hopefully give you a better idea of your options so you can choose which one is right for you. We look forward to working with you soon!

Categories: Finance