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Discussion Starter · #1 ·
Did anyone do a lease versus buy analysis before purchasing their ascent? This is the first time I am thinking of leasing...so I wonder if anyone did the analysis and what reasons if any swung you in favour of leasing or purchasing?

Thanks!
 

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I'm also looking at lease vs buy.

I have only leased once before because my wife fell in love with the 96 Grand Cherokee and I had serious quality queasiness. Turns out, 36 month lease was the way to go. Just walked away from a car that needed a complete repaint in less than 1 year despite being garaged; needed every interior panel and headliner replaced due to disintegration; exterior body cladding due to disintegration; dashboard replacement due to complete electrical failure; seems the car spent more time at the dealer than on the road.

I have similar ill ease with the Ascent and other 2020's I'm looking at. Not trying to cast any aspersions against Subaru, it's just that the cars have so much technology that keeping the car 3 - 5 years while it's still under warranty seems to make some sense. Normally my wife and I keep cars for 10 - 20 years but I just think some of the components used today just won't last that long. (My RX300 turned 20 this past year and in addition to routine and scheduled maintenance, we've replaced all of the rubber under the car, CV boots, shock boots, brake lines etc.)
 

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If you don't want to drive the vehicle longer than the OEM warranty (3 yrs/36K miles) because you want a new vehicle that often (and don't put on a ton of miles) or need the lower payment based on only the depreciation for some reason or need a vehicle for business use and leasing can work accounting wise (Ascent doesn't qualify for the business write off that larger vehicles can provide) then leasing is worth considering.

If you plan on owning and driving the vehicle beyond the OEM warranty (3 years/36K miles) with or without a Subaru Gold extended service contract, have the necessary down payment and/or trade to make the payments affordable with the interest rate you qualify for, then buying makes more sense. If you drive a lot of miles each year, buying is usually a better choice than leasing, too, because of the added cost for those miles in the leasing arrangement or penalties for the same if you turn it in "over" your limit.

Leasing is best as a short term arrangement, IMHO, and rarely do. Never put a down payment on a lease, either...you want zero down outside of necessary fees. A "down payment" on a lease is more or less pre-paying part of what the monthly payment would be without it and there is only very minor financial benefit with a big down-side if you total the vehicle "early"...you generally can't get the pre-paid money back.
 

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I agree, and if you drive more than 12,000 miles a year, lease terms tend to be a bit less favorable, because dealers don't want to sell a three-year-old car with 45,000 miles, as opposed to one with 36,000 miles.

If you're new to leasing, check out a number of online resources regarding how leasing works, so you know what you're getting into, and understand the terminology, such as. money factors and residual values excetera excetera. Things are negotiable in a lease, not everybody realizes that.

Keep in mind, if you are on a tighter budget, you'll also probably need to purchase new tires during the life of the lease, so factor in that cost as well...
 

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Money wise it ends up being roughly the same in the lease vs buy comparison. The difference is when you buy you put the money up font and get it back when you sell, while in the lease you pay for the difference only. If you finance the vehicle, buying you pay more interest because you borrow a larger amount (depending on the deal you get, 0.9% is nothing) but leasing you pay more in insurance cost. At the end is more or less the same money.
The real difference to me is in the freedom you get when you buy:
  • I keep the car for as long as I want. If I like the car I may keep it for many years, if I don't, I sell it, but I and only I decide when.
  • The timing to sell is important because you go buy your next vehicle when the price is right for you vs. being forced to do it at a certain time because of the lease expiring. Let's say the car you want is about to be completely refreshed, you can wait another year and get that model, but not if your lease is expiring. Or you can buy a new car from the prior model year at a deep discount, or a friend of yours is selling a really cool car because he's moving, etc. You need to act at a very precise time, and you can get very good deals if you time it right. That timing might be worth more money than any analysis lease vs buy will reveal.
  • Mods! If you want to mod your car, don't lease as you lose all of it at the end of the lease. The leasing company will not think your mods are cool and give you more money for it (as will happen if you sell the car). They will actually deduct the cost for them to restore the car to stock. You'll pay for it big time.

I prefer buying, more for freedom than for money. That doesn't mean there's anything wrong with leasing.
 

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Discussion Starter · #6 ·
Thanks for the input folks! I figured the same as well...sharing some links I found for others benefit:
Seems ascent does not "lease well" whatever that means...I guess Subaru does not offer much attractive rates...

 

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Glad the comments have been helpful so far.

BTW, higher end/higher trim often "leases better" than lower end vehicles because of the effect on the residual (value at the end of the lease). The better the residual, the lower the depreciation/monthly cost for leases with the same money rate. Sometimes the better money rate is also more favorable on the higher end/higher trim vehicles.
 

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I have never attended for a lease, I would really recommend you to go for a loan. This is what I have done a couple of years ago when I was buying my car, and to be honest the lease program was so doubtful and I could not risk the money I have for an offer like this one. So to say, my brother was working for a credit company at that moment and he told me that I can have a pretty good loan offer from this credit company https://foxycredit.com/fi/credigo-laina and sincerely this offer was really awesome, they still have some great offers, so take a closer look if you want to have a loan too
 

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We ended up going with the lease vs the outright purchase just because the payments were so much lower. We plan to purchase at the end of the lease anyway. Doubt it made much difference in the end.
 

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We ended up going with the lease vs the outright purchase just because the payments were so much lower. We plan to purchase at the end of the lease anyway. Doubt it made much difference in the end.
You will likely pay more for the vehicle overall this way.
 
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