Should You Get a Loan or a Lease? Our Finance Center Can Help You Decide

Once you've found the perfect new 2021 Subaru sedan or SUV, the next question can be almost easy to answer at Jenkins Subaru: Should you finance it with a car loan or a lease? Both options have plenty of upsides and a few downsides, depending on your financial situation. We have in-house financing experts who can help you make the right choice, but let's take a quick look at how the two choices compare.

Getting a Loan: The Path to Ownership

The Finance Center at Jenkins Subaru in Bridgeport WV is a complete car loan and leasing resource. One reason we've seen many people choose a loan is because they want to build equity in a car so they can someday own it. If that's how you feel, a car loan is probably the right option. If so, we have strong relationships with many different lenders, so we can help you find the best available loan rate on a great new Subaru model like the 2021 Forester, Outback or Crosstrek.

Car Loans: Now with Longer Terms

To help you decide if a loan is right for you, we can show you the best available loan rate and what your monthly payments would be. The amount of the payment depends primarily on two things: What's the rate and how long is the "term" - that is, how many months do you have to pay it off? Not long ago, most car loans were for 5 years or 60 months. But that's no longer the case.

Today in communities like Elkins, WV, the most common car loan term is 72 months, and 84 month-terms are not far behind. The reason: New vehicle costs have risen dramatically, and given a certain loan rate, the only way to reduce your monthly payments is by stretching out the term of the loan. The more months, the lower your monthly payments. But that doesn't mean you should always get the longest term you can find.

Monthly Car Loan Payments: A Good Way to Eliminate Monthly Car Payments

At Jenkins Subaru, we've seen customers in Buckhannon or Grafton WV start thinking about a new car after 3 or 4 years. But if you have a loan for 6 or 7 years, you either have to wait or face selling your car for less than you owe. That would mean you'd have to come up with cash to pay off the loan, and more cash for a down payment on your next car. That's not a good formula for building a strong financial position.

But if you can keep your car for at least as long as your loan term, you have a better chance of eventually owning a car and eliminating monthly car payments. The good news is that many of our neighbors in Clarksburg, WV and other communities are holding on to their cars longer. And with a 2021 Subaru SUV or sedan known for reliability, that strategy has an even better chance of success.

Leasing Offers You Lower Monthly Payments than a Loan

For many people in Elkins, WV,, a lease can be the best way to drive a new 2021 Subaru home. One reason to get a lease is because, while you aren't buying the car with a lease, your monthly payments will be lower than with a car loan. In addition, the right lease can let you drop off your 2021 Subaru in three years and move into a new lease, and a brand-new Subaru.

Leasing Concerns To Keep In Mind

If you drive more than about 12,000 to 15,000 miles per year, a lease might not work because there's an annual mileage limit. If you go over the limit, you'll incur a fee. One other concern is that a lease doesn't allow you to own the car. It's like renting without ever building equity in the car.

Our Finance Specialists Can Tell You More

Shop our exciting new 2021 Subaru models and learn as much as you can about your financing options. Just set up a friendly conversation with a financial expert at Jenkins Subaru. We can help you make the right decision and even help you fill out our financing application. Go online or call us today to schedule an appointment for a test drive, a financing discussion, or both. We look forward to seeing you soon at Jenkins Subaru in Bridgeport, WV.


                                                   

Jenkins Subaru

750 Lodgeville Rd
Directions Bridgeport, WV 26330

  • Sales: 304-848-6000
  • Service: 304-848-6000
  • Parts: 304-848-6000

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