Leasing
gives you the ability to pay for the part of the vehicle you use, and
give you a choice of "purchasing" after you have driven it for a few
years.
This graph demonstrates how a lease differs from a
traditional purchase. Two identical vehicles each with a cost of
$25,000 are shown. One is purchased and after paying $25,000, you own
the car. With the lease you make payments for the lease term (usually
36 months), and then have a choice. You can hand the car back in to Palm Springs Subaru, you can purchase the vehicle for the residual value or you can trade it in and use the equity, if any, towards another Subaru.
The residual value is the predetermined value of the car after the lease
term. One thing to keep in mind is vehicles that hold their value
generally are better vehicles to lease. If the residual value is higher
at the end of the lease, your payments will be lower during the lease
term. The graph below demonstrates a residual of 50%.
