Subaru Financing Options in Feasterville-Trevose, PA

If you’re choosing a new Subaru, you’ve already made a great choice. All Subaru vehicles, like the rugged Outback, fuel-efficient Impreza, and adventure-ready Forester, are built to be reliable, safe, and innovative. Once you’ve chosen a new Subaru, you’ve got another important question to answer: Should you lease or finance it?

Both options have pros and cons, and the best choice depends on your lifestyle, financial goals, and driving habits. Around Philadelphia and Southampton, the finance team at Colonial Subaru can help you choose between leasing or financing your new Subaru.

Leasing a New Subaru

Leasing a new Subaru is a popular choice for people who like new cars every two or three years. When you lease a vehicle, you have the vehicle for the term of the lease, often between 24 and 36 months, then return it when the term ends. The low monthly payments are based on the term and the residual value of the vehicle at the end of the term, so leases have restrictions on mileage and customizations.

Before you commit to a lease, it’s important to understand everything in the lease. Most leases have low monthly payments, which makes them very attractive. Because of the lease terms, most also include a full factory warranty. Leases also have lower down payments and other upfront costs compared to auto loans. Those benefits have restrictions, often annual mileage limits between 10,000 and 15,000 miles. Leases also have restrictions on wear and tear, so if you exceed any of the restrictions, you’ll have fees to pay at the end of the lease.

Financing a Subaru with an Auto Loan

Auto loans are the other financing option available to drivers who want a new Subaru. Auto loans are available with a variety of terms and interest rates, and drivers with better credit scores tend to get better rates and terms. When you finance with an auto loan, you’ll make monthly payments and then own the vehicle when the loan is paid off.

Unlike leases, auto loans do not have mileage, customization, and wear-and-tear restrictions. When you pay with a loan, you build equity, but you do have to worry about depreciation. Because auto loans include the full sticker price minus a down payment, loan payments tend to be higher than lease payments. Where leases are usually for two or three years, some auto loans can extend up to seven or eight years, making loans long-term commitments.

Which Option Is Best for You?

Choosing the best financing options means looking at your long-term goals and your daily driving habits. If you drive more than 10,000 to 15,000 miles annually, then an auto loan is a better choice. Leases are good choices if you drive limited miles, enjoy having a manufacturer’s warranty, and like new cars every few years. Take a few moments to consider the pros and cons, and how each financing option fits your financial goals.

Apply For a Lease or Loan at Colonial Subaru

Colonial Subaru in Feasterville-Trevose, PA offers several convenient financing tools. Before you choose your next Subaru, check out our financing calculator. We also have an online financing application so you can apply from your phone or computer, then check out our new Subaru specials for money-saving offers and incentives.

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