How Does Leasing a Car Work?
We know not everyone in Fairbanks, Alaska wants to commit to a new Subaru car or SUV for the long term, which is just fine. So, for some, leasing a car might be better way to go. However, if you’re not sure if leasing a car is right for you, let’s take a look at how it works so you can make an informed decision for yourself.
Who owns the car?
You never own the car during the term of its lease. This is the biggest difference between buying or financing a car and leasing it. The car you’re leasing is still owned by the dealership from which you’re leasing, then you’ll return it to them when the term of your lease is up. The biggest benefit of not owning the car you’re leasing is that this gives you the option to upgrade your car every couple of years or so without being tied to a finance agreement or needing to find a buyer.
Understand your mileage usage
Something to keep in mind is that you’re allotted a certain number of miles each year of your lease term. It’s a good idea to have an understanding of the number of miles you put on your car every year before you sign a lease agreement. If you go over the allotted number of miles in the lease agreement you could accrue charges of 10 to 25 cents for mile (depending on the lease agreement). The mileage agreement can be negotiated, but it’s better to shoot high and come in under the target than shoot low and go over.
Take care of your lease
There’s a stereotypical mindset that comes with renting cars. People like to drive a rented car hard for a week because they won’t be driving it the next week. This, however, doesn’t apply to a lease. There are wear and tear guidelines that come with a lease and excessive wear on the car could cost extra when you return it in the end.
Advantages to leasing
There are pros and cons to everything, so let’s look at the advantages of leasing a car from Kendall Subaru of Fairbanks. In the end, leasing a car is cheaper than buying it outright or financing, because you’re only paying a percentage of the total price. You also won’t have to worry about finding a buyer you’re or trading it for a good price when you’re done, because the dealership is guaranteed to take it off your hands.
If you like to have the newest gadgets and most up-to-date features, leasing may be your best bet, as you can easily upgrade to drive the latest and greatest models. You may also be able to drive a nicer car than you could normally afford.
To find a good deal on a Subaru lease with Kendall Subaru of Fairbanks, be sure to shop our Subaru incentives and offers.