Get All of Your Leasing Questions Answered Here

When it comes time to get behind the wheel of a new vehicle, many Connecticut drivers find themselves asking questions like, "Should I lease my new car? How does leasing work?" and more, to make sure they're making the right decision. At Quality Subaru, we've got you covered. We are always happy to answer all your lease-related questions so you can feel confident about your choice to lease your new Subaru. Below, you'll find a short list of our frequently asked questions, followed by a more extensive list of potential questions you may have. We truly tried to include any and all leasing questions that one might ask when they come into visit us.

  • Why should I lease my new car instead of buying? Leasing a new car is often more affordable than buying and can also offer tax benefits. You can learn more about the benefits of leasing here.
  • Can I use my current car as a trade-in on my new lease? If your current vehicle has already been paid for, then yes, you can put your trade-in towards the cost of your new lease.
  • What happens if I go over my mileage limit? If you go over your mileage limit, you'll be charged a small fee per mile at the end of your lease.  However, if you know that you're going to be driving long distances, you can buy additional miles before you begin your lease, which will cost less than the excessive miles fee.
  • Can I lease a used car? Yes.
  • What if I need to end my lease early? If you want to end your lease before the contract is up, you can return your car to our dealership, or you can choose to buy the car. Be sure to ask our finance center about any early termination fees that might apply before making your decision.
  • What happens at the end of my lease? When you're lease is over, you have a few options. You can return your vehicle to Quality Subaru; after your return, you can walk away, or you can start a new lease on a different vehicle. You can choose to buy your car for the price agreed upon in your initial contract.

If you need more details or you have a question that we didn't cover, feel free to give us a call at our Wallingford, CT dealership. Our finance staff is ready to answer all your questions and provide detailed explanations, so you can get all the leasing information you need. That way, you feel confident about your choice to lease and you can focus on enjoying your new car.

Have A Leasing Question? Let Us Know!

Additional Leasing Questions Drivers May Have

Can leasing a car be a better deal than buying?

Depending on what you want and how long you intend to keep it, leasing can be more cost effective than buying the vehicle outright. As a rule of thumb, if you plan to drive the vehicle for fewer than six years, two three year leases are generally more cost-effective than buying the vehicle outright and selling it at the end of the term.

What is the difference between a money factor and an APR?

Most people are familiar with the annual percentage rate (or APR) which is the annualized rate at which interest accrues on a loan. The money factor on a lease is the same basic concept only expressed in a different (and arguably more confusing) manner. The money factor is simply the APR on a lease divided by 2400. In order to convert money factor into the more understandable APR, simply reverse this and multiply by 2400. (A 0.00125 money factor multiplied by 2400 becomes a 3.0% APR.)

How do residual values work?

The residual value is, in essence, a pre-arranged price that the manufacturer thinks the car will be worth at the end of the lease. Instead of buying the car at the full purchase price and selling it three years later, the residual value is subtracted from the negotiated price of the vehicle and you pay this amount (plus interest and fees) spread out into monthly payments. This means that you're only paying for the value the car loses during the period of time you will be driving it.

How is a cap cost reduction different from a down payment?

This is another bit of leasing jargon that can be confusing to first time lessees. The capitalized cost, or cap cost, is the total amount being financed with a lease. This includes the negotiated cost of the vehicle, as well as any taxes or fees that are being financed.A cap cost reduction, therefore, is any payments, rebates, or trade-in credits, paid up front that lower the amount being financed. Like a down payment, the greater the cap cost reduction, the lower the monthly payments will be.

How is sales tax applied to a lease?

Sales tax is only applied to the payments you make over the term of the lease. This can significantly reduce the amount of sales tax you pay as compared to financing, and as a result, the monthly payments.

Which parts of a lease are negotiable?

Of the three factors that contribute to the cost of a lease, only the price of the vehicle is negotiable. The money factor, the residual value, are set by the manufacturer and is not open to negotiation.

How should I determine what mileage to include in the lease?

Typically a lease comes with a set number of miles that the vehicle can be driven before additional fees are applied. This is usually 10,000, 12,000 or 15,000 miles per year, but if you think you will go over this it can be a good idea to purchase additional miles in advance. To get an idea of how many miles you use, take your round trip daily commute to work and multiply it by 260. You probably do some additional driving on the weekends so add another 10 to 20%. If you're close to or over the allotted mileage, you may want to purchase additional miles in advance so that you don't run into overage fees at the end of the lease.Remember that the manufacturer has essentially agreed to buy back the vehicle for the residual value. This value is based on assumptions such as the vehicle's mileage and condition. If the vehicle is over mileage it is likely worth less than the residual value and the manufacturer will need to be compensated via overage fees for that difference.

What is the shortest car lease available?

Typically car leases are for 36 months, but they can be as short as 24 months. While it is possible to lease a vehicle for less than 24 months, the terms of such a lease are generally not favorable and we do not recommend them in most circumstances.

What if I want to end my lease early?

There is usually a fairly high early termination penalty on leases. However, if you're approaching the end of your lease and you want to lease the same brand again, you can sometimes take advantage of a "pull ahead" program. These programs will often waive the last few lease payments on your old lease in order to get you into a new car before the lease is up.

What happens at the end of the lease?

Assuming that your vehicle is in good condition and you are under your allotted miles, all you need to do is return the vehicle to any dealership and pay the disposition fee (most brands will waive this if you lease another vehicle with them).

Quality Subaru

711 N Colony Rd (Rte 5)
Directions Wallingford, CT 06492

  • Sales: (203) 949-1104
  • Service: (203) 949-1104
  • Parts: (203) 949-1104


  • Monday 9:00AM-7:30PM
  • Tuesday 9:00AM-7:30PM
  • Wednesday 9:00AM-7:30PM
  • Thursday 9:00AM-7:30PM
  • Friday 9:00AM-5:30PM
  • Saturday 9:00AM-5:30PM
  • Sunday Closed