Benefits of Loans and Leases

When it comes to financing your next new Subaru model you generally have two options: a loan or a lease. Each has its benefits, depending on your needs. If you won't be putting many miles on the vehicle early on, and you want to trade it in for something newer in the near future, a lease is a good option. However, if you're planning long trips, or if you want to hold on to the vehicle for years to come, a loan is the better choice. Here are some key benefits and drawbacks to each option.

Loan vs. Lease Quick Facts

  • Monthly Payments: Lease payments are almost always lower than low payments. This is because you're essentially paying for the vehicle's depreciation over the course of the contract. Payments are higher with a loan because you will be paying off the entire purchase price.
  • Ownership: With a loan, you own the vehicle. You can do what you want with it, and keep it as long as you'd like. You don't own a leased vehicle, instead, you are paying to use it for a period of time.

  • Mileage: With a loan, there are no mileage limits because the car is your own. With a lease, however, your mileage is limited and you'll have to pay a penalty for exceeding the limit.
  • Vehicle Return: With a loan, it is on you to sell or trade the vehicle when you no longer want it. With a lease, just pay any end-of-lease costs and you can walk away free and clear.
  • Early Termination: With a loan, you are free to sell or trade the vehicle at any time. Terminating a lease early, however, can result in charges that could be almost as expensive as seeing your lease through to the end.
  • Future Value: With a leased vehicle, you don't have to worry about the vehicles depreciation, but you also won't have any equity. With a loan, the vehicle will depreciate, but its cash value is yours.

Whether you choose to lease or loan, the experts here in our finance center are here to ensure a simple, hassle-free process. They'll work with you to help you understand all your options and to secure a financing solution that works best for your needs and budget. If you have any questions about financing, don't hesitate to contact us at your convenience, or come visit us here in North Reading. We're conveniently located to serve drivers from Boston, Belmont, Lawrence, and Medford, and we'll be happy to assist you.

  1. North Reading Subaru

    260 Main Street
    North Reading, MA 01864

    • Sales: (978) 396-6090
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North Reading Subaru

260 Main Street
Directions North Reading, MA 01864

  • Sales: (978) 396-6090
  • Service: (978) 396-6090
  • Parts: (978) 396-6090


  • Monday 8:30 AM - 7:00 PM
  • Tuesday 8:30 AM - 7:00 PM
  • Wednesday 8:30 AM - 7:00 PM
  • Thursday 8:30 AM - 7:00 PM
  • Friday 8:30 AM - 6:00 PM
  • Saturday 8:30 AM - 5:00 PM
  • Sunday Closed