Buy or Lease?
When you're ready to get behind the wheel of a new Volkswagen, one of the first decisions you'll face is whether to lease or buy your vehicle. There are benefits and drawbacks to both options, so how do you know which is right for you? Volkswagen of Daphne is here to help you make an informed decision, so let's dive into the pros and cons of leasing vs. buying your next car.
Leasing a Volkswagen
You can lease a new Volkswagen for a set period—usually two to three years—with lower monthly payments than buying.You'll make monthly payments for the lease term, and then you will be given the option to return the car or to buy it.
Advantages of Leasing a New Volkswagen Vehicle
- Lower monthly payments: Lease payments are typically lower than loan payments, making leasing an attractive option for those on a budget.
- Drive the latest models: Leasing lets you drive a new Volkswagen every few years, so you can always enjoy the latest technology, safety, and design features.
- Warranty coverage: Leased vehicles are often covered by a manufacturer’s warranty, minimizing out-of-pocket repair costs.
Drawbacks of Leasing a Car
- No ownership: At the end of the lease, you won’t own the vehicle, meaning you’ll need to lease or purchase another car.
- Mileage limits: Leases include mileage restrictions, and exceeding the limit can be costly.
- Customization restrictions: Leased vehicles must be returned in their original condition, so you can't make any permanent modifications.
- Ongoing payments: Since you’re renting the vehicle, you'll always have monthly payments. Unlike buying, where payments end once the loan is paid.
Buying a Volkswagen
Buying a vehicle means taking full ownership after you’ve completed the purchase, whether you pay upfront or finance it.Advantages of Buying a New Volkswagen Vehicle
- Ownership: Once you pay off the loan, you own the vehicle and can keep it for as long as you want. When you buy, you're also investing in an asset with resale value. Volkswagens hold their value well, meaning you can sell or trade the vehicle when you’re ready for something new.
- No mileage limits: Buying is ideal if you drive frequently or take long trips, as you won’t have to worry about mileage restrictions.
- Customization: You can modify and personalize your Volkswagen, from performance upgrades to aesthetic changes.
- Long-term cost savings: Buying can be more economical over time. Once the loan is paid off, your primary expenses will be maintenance, insurance, and fuel. However, keep in mind that maintenance and repair costs can increase as the vehicle ages, especially after the warranty expires.
Drawbacks of Buying a Car
- Higher upfront costs and monthly payments: Buying requires a larger down payment and has higher monthly payments than leasing.
- Depreciation: Although Volkswagens retain their value, all vehicles depreciate, and you’ll bear the depreciation cost.
- Maintenance: After the warranty expires, you’ll be responsible for all maintenance and repairs.