Lease vs. Auto Loan: Understanding the Key Differences

If auto financing seems complex and confusing, don't worry -- Bob Rohrman Subaru is here to help.

Most customers who visit our dealership are interested in securing a monthly payment plan. However, they often aren't sure whether they should apply for a lease or a loan. The two aren't the same, after all, and there are some significant differences to take into consideration.

That's why we've taken the time to break down the benefits of both auto loans and leases. With this information, you'll be able to make a more confident decision about auto financing.

Benefits of Leasing

Leasing can be quite attractive to many new car shoppers, since it often means getting a low, affordable monthly payment. Lease agreements are like long-term rentals. You'll use a brand-new vehicle from our dealership in exchange for monthly installments. But since you're not paying for the entire value of the vehicle, your payments remain low and affordable. Plus, leases usually last two to three years. That means you'll have more frequent opportunities to upgrade your vehicle to a newer model.

Benefits of Financing

Auto loans are more popular with shoppers who want long-term ownership. With a loan, your lender will provide the money to buy the vehicle up front. In return, you'll pay back the loan with monthly installments and interest. Loans are often a smart financial decision, since your money is actually going into a vehicle that you own. When you're ready to move on to another vehicle, you'll be able to use your current one for trade-in value. You also won't have to deal with the restrictions of leasing, like mileage limitations and excess wear charges.

Apply for a Lease or Loan at Bob Rohrman Subaru

Bob Rohrman Subaru is happy to help you with both auto loans and leasing. We have resources to make applying for both easier along with plenty of options to consider. Submit your online application today to get started!

Categories: Finance
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