Should I Buy or Lease My Next Volkswagen?
Let's Talk about Leasing vs. Financing
Shopping for your next Volkswagen is a fun and exciting experience; perhaps you’ve researched, and test driven the model that you want and you’ve selected the perfect choice. Before you take your new ride home, you, just like every other driver, will have to choose whether you’ll lease or finance. The lease vs. finance battle can be fierce, as both options have strong support. Dive in with us as we explore both options and help you discover which choice is best for you.
Leasing and Financing in a Nutshell
A car lease is almost like a long term rental, but instead of keeping your vehicle for a few days or weeks, you keep it for a few years; usually two or three. Each month, you’ll make a payment to the leasing company that covers the depreciation of the vehicle, plus nominal finance fees. During this two or three year period, you’ll enjoy your vehicle while ensuring that you keep it maintained and in good condition. Once your lease term is up, you may return the car, and start the process over with a new vehicle, or choose to purchase it and keep it as long as you’d like.
Financing a vehicle involves obtaining a loan for the entire purchase price of the vehicle, less the amount of any down payment. Overall, drivers are taking on a larger financial responsibility by financing the entire purchase price of their vehicle, their monthly payments are often higher than that of a lease. However, many financing options allow buyers the opportunity to stretch out their loan terms to 60, 72, and sometimes even 84 months so that they can comfortably pay for their vehicle without putting their other obligations in jeopardy.
The Ups and Downs
Leasing a vehicle is an incredible way to drive home in your dream car with a payment you can afford. Because you’re only paying for the depreciation of the vehicle, plus finance fees, your monthly payments will often be lower than if you had financed the same car. Leasing also brings peace of mind because your vehicle will likely remain under warranty for the duration of the lease, so you don’t have to worry about costly repairs. Leasing also gives you the opportunity to “try out” a vehicle by driving it for a few years; giving you the option to keep it if you decide to buy it.
The downside of leasing is that there are mileage limits that come with each lease, and if you exceed these limits, or if you fail to keep the car in good condition, you may incur fees when your lease is over. Another downside of a car lease is that you’ll always have a lease payment because you are not purchasing the vehicle, but instead driving it for a set period of time.
Purchasing a vehicle is a great option if you drive a lot, or plan to modify your vehicles. Because you’ll own your Volkswagen, you’ll have the freedom to sell the car when you get ready and may keep it once you’ve paid it off.
The downside to purchasing is that it often results in higher payments because the auto loan covers the entire price of the vehicle rather than just the depreciation. Another downside is that you don’t have the flexibility to always drive with the latest technology, as you would a lease.
We’d Love to Work with You
Here at South Motors Volkswagen, we walk you through the process of buying or leasing your next vehicle. Our finance center features incredible Volkswagen lease specials that allow you to drive the car of your dreams at a price that you can afford. Our finance experts are highly trained and work diligently to get you off in a VW lease or a comfortable car loan while making the process hassle free and enjoyable. Come down to South Motors Volkswagen today, test drive one of our stylish new models like the 2021 Volkswagen Tiguan, and discover how easy it is to take yours home.