Leasing vs. Financing a New Volkswagen

Should You Lease or Finance a New Volkswagen

Leasing vs. Financing a New Volkswagen from Burlington Volkswagen

When it comes to purchasing a new vehicle, there are two main options to choose from – leasing and financing. The main difference between leasing and financing is ownership. When you lease a vehicle, you agree to pay a specified amount within a specific time period. When the lease ends, you can choose to either renew the lease, return the vehicle, or buy it. Financing is a contract to agree upon to buy a vehicle over time by working with the dealership or credit union. For more information on financing options, contact our finance experts at Burlington Volkswagen.

The Benefits of Leasing

There are many benefits to leasing a vehicle rather than financing. One of those is that monthly payments are generally lower. This is because none of the principal is being paid back, you’re borrowing the money and then repaying the difference between the vehicle’s worth when new, and its residual. There are other benefits of leasing as well, and these include:

  • Most vehicles leased are still covered by the manufacturer’s warranty
  • You get to drive the vehicle during its trouble-free years
  • Some leases include free scheduled maintenance
  • You can drive a better-equipped vehicle for a price in your budget
  • You won’t have to worry about the hassle of selling when you’re ready to move on

When it comes time to get yourself into a newer model, leasing is a great option to consider. You could end up stressing less when you choose to lease through Burlington Volkswagen, near Trenton.

The Drawbacks of Leasing

While leasing may seem like a great option for some drivers, in the Philadelphia area, there are some drawbacks to leasing a vehicle. By the end of leasing, it usually costs more than a comparable loan because the vehicle is being paid for when it depreciates the most. Another thing to consider is that monthly payments can go forever if you lease one vehicle after another. There is also a limited amount of miles that you can put on the vehicle when you lease, and there is a good chance you would have to pay for excess wear when you turn it in.

The Perks and Disadvantages of Financing

One of the biggest perks of financing a vehicle is that you OWN it. There is no limit to how many miles are put on, and you won’t have to pay any fees for wear and damages by the end of financing. Financing also allows you to sell or trade-in the vehicle you’ve financed for the best value out there. On the other hand, you could end up spending up to 60% more than if you leased a vehicle, and financing requires a larger down payment compared to leasing. On top of that, once the manufacturer warranty ends, you’ll have to pay for all repairs and maintenance out of pocket.

Whether you’re looking to lease or finance, there are pros and cons to both. When it comes time for a lease to end, a financier might have a few years left of payments, but the lessee will have to look for another vehicle.

If you’re in the Burlington area and have questions about our financing options, don’t hesitate to drop by Burlington Volkswagen.