September 1, 2019

End of Lease Options

Leasing a car with Eblen Subaru in Glenelg is great because leases are generally quite affordable and accommodating when compared to a straight forward purchase, they add a level of certainty because you know exactly what you’re paying each month, and you know the Eblen Subaru has your back in the unlikely event anything goes wrong.

Compared to financing a car, leasing offers the benefit of having fuel, servicing and repairs included in the monthly price. All the costs are combined into one monthly, consistent fee, making budgeting easier. Depending on your profession, there are also substantial tax benefits – since servicing and fuel costs are included in the lease, the financer claims the GST tax credit, effectively providing a 10% discount. Furthermore, those working in certain sectors can claim their lease as a business expense.  If you work for a company that offers salary packaging, the running costs re paid from your salary before the tax is deduced, saving you substantially. This reduces your income as well as the taxes you pay

But what happens once the lease is over? If you’re not prepared, you may be surprised.

When your lease is over, you are left responsible for the residual value, which is an estimate for how the much the vehicle is worth after the contract is up. This is in comparison to the original purchase price, and takes into consideration depreciation due to the amount of kilometres travelled, inflation, any repairs that were done as well as other factors. Your monthly lease payments are not to cover the entire price of the car, rather, they cover the difference between the purchase price and what the car is worth at the end of the lease.

During your lease, you are generally required to keep it within a set mileage allowance and may face additional fees when the lease is up if you don’t abide by the conditions in your least contract.

When your lease is over, you have several options. You may:

1. If you don’t love the car, sell it and pay the residual value;
2. If you think it’s the right fit for you, pay the residual value and keep the car; or
3. Trade in the car to the dealership for a new one and start another lease, depending on your credit.

For option(s) one and three, you’ll want to sell your Subaru for the highest possible price in order to remove the out-of-pocket cost. Typically, the easiest option is to sell it back to Eblen Subaru. You may also consider selling it back to a wholesaler, although you will receive less than the retail market value.

Buying out your leased Subaru gives you the benefit of having paid for the vehicle during the highest period of depreciation. You also know what you’re getting and will enjoy the perks fof having developed great relationship with Eblen Subaru. We pride ourselves on making our customers feel comfortable, and will always be there for you if any issues arise. Keep in mind, we may charge a lease purchase fee and depending on the make and model, a leased vehicle at the residual price could still end up being more expensive than a new model.

Benefits of leasing a Subaru

One of the best aspects of leasing is the direct relationship you will enjoy with Eblen Subaru. Some of the other benefits of leasing through a Subaru dealership may also including adding features and upgrades over time. Leasing allows you to take your pick of original equipment manufacturer accessories with the cost spread out over the lease term. This makes it much more achievable and affordable to get those premium upgrades you’ve always dreamed of. Some of the features you may consider include bigger wheels and tyres, both for the aesthetic and functionality, a tow bar for long family trips, a full leather interior or trim, which provides a premium experience that is cleaner to boot, window tiny, metallic paint and roof racks. All of these features add more value to your car and make it worth more in the grand scheme of things. One premium you should definitely consider in your lease is the safety pack – it’s a no brainer for safety, but these packs also hold their value if you decide to sell at the end of your lease.