Leasing vs Buying at Your Volkswagen Dealership

When it comes to the important decision of leasing vs buying your next vehicle, the choice can be overwhelming. Both options offer pros and cons, which vary depending on your ownership goals and budget. In this guide, we’ll help break down your options so you can be prepared before visiting your Volkswagen dealership to find your next ride.

Leasing vs Buying at Your Volkswagen Dealership

How Financing Works

Some people have the funds to purchase a new vehicle outright, but most consumers provide a down payment, trade-in, or both, and finance the rest of the cost with an auto loan. The interest rate is based on your credit score, and you’ll agree to make monthly payments toward the principal balance and interest of the loan until it’s paid off, at which point you will become the vehicle’s legal owner.

Benefits and Disadvantages of Financing

Financing offers many benefits: no mileage restrictions, no extra charges for wear and tear, and you can resell or trade your car in whenever you want once it’s paid off. It’s also a great option if you aren’t concerned about driving the latest model. However, the monthly payments are usually higher than leasing fees, the cost might limit your options, and you’ll be on the hook for all maintenance costs.

How Leasing Works

When you lease a new vehicle, you agree to possess it for a set length of time: typically three years or less. Similar to financing, you’ll pay a monthly fee for the duration of the term, though the fees are usually much lower. At the end of the period, you can purchase the vehicle, or return it for a new one, but keep in mind you may not be able to negotiate the price much when buying out a lease.

Benefits and Disadvantages of Leasing

Leasing is a more affordable way to enjoy a new vehicle and allows you to try it out for a while before committing to ownership. In addition to lower monthly payments, leases typically cover most of the maintenance costs during the term, but you will be charged for any wear and tear.

Most leases restrict how many miles you can drive during the leasing period, and will charge you for exceeding the limit. Leasing long-term is more costly than buying, and ending a lease early can result in a large penalty.

Our expert team is ready to assist you with the financing or leasing option that best meets your needs, so you can feel confident with your decision when you drive home in your new car. When you’re ready to explore options for your next vehicle, stop by Ewald Volkswagen of Menomonee Falls in Menomonee Falls, WI to browse our wide selection of new cars and SUVs.

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