Volkswagen Finance Or Lease: What Option Is The Right For You?

Leasing vs Financing

If you’re looking to take home a new Volkswagen vehicle, choosing between VW leasing vs. financing might seem like a complicated question. The answer rests in learning the fundamental difference between leasing and owning a car. After understanding the differences, pros, and cons, you will be able to decide which is a better choice for you. Once you’ve found the perfect new Volkswagen car in Fort Lauderdale, FL, it’s time to select how you want to own it. Scroll down to learn more.

VW Leasing vs. Financing: the Comparison

There are two ways to own a car. Leasing a Volkswagen vehicle can be considered a “pay as you go” or “usage-based” payment structure. Among other factors, your credit and capitalized cost will affect your specific Volkswagen lease payment rate. Fringe benefits include warranty-covered repairs and freedom from depreciation.

So that’s the direct comparison of lease vs. finance. What about the other points?

The lease payment of your car will be lower than the payment for owning it. The amount depends on certain factors, namely the interest rate, sales price, and mileage. The primary lease contract is anywhere between 36 to 48 months. After that, you can opt for a different vehicle or, in some cases, extend your lease, or buy it out.

Depending on the mileage, leasing can be further broken down into two categories. The high mileage lease, in which the number of miles you get to drive the car in a year will be more (about 18k miles), increases your Volkswagen lease payment. The low mileage lease will have fewer miles allowed at a lower lease payment. Keep in mind that you should be sure about your lower-mileage driving habits. You might incur over-mileage fees at lease-end. Speak with a leasing specialist for more.

Buying the car often means paying a higher monthly rate (decided on your down payment & credit), but in the end, you get to own it as an asset. After that, you can keep it for however long you like, modify it to your preferences, and drive it to your needs and miles without a single worry about wear & tear fees and many others. Let’s wrap up our VW leasing vs. financing discussion below.

VW Finance or Lease? What Will Work for You?

There are advantages and disadvantages to both leasing and buying a car. On the one hand, leasing offers you the alternative to drive a different car every 1-3 years. On the other hand, buying the vehicle will give you the freedom to use it without restrictions.

After thoroughly enjoying your Volkswagen vehicle (after all, who doesn’t), you can hop into a new lease after going through our seamless Volkswagen lease return process. The lease return will include an inspection of the car, signing the odometer statement, and paying for any additional fees (like excess damage or mileage).

Whether leasing or buying your next Volkswagen vehicle, contact us to discuss all available options and get a personalized opinion regarding WV lease vs. finance terms and how that applies to you. From the team at Gunther VW, we wish you many years of happy motoring.

Frequently Asked Questions

How much does VW charge for extra miles on a lease?

The VW excess mileage charge is 35-cents per mile. This number is about 25% less than other European auto manufacturers, and while the goal is always to help you save, end of lease mileage adjustments can add up.

How many miles can you put on a leased car?

In general, the average lease is between 10,000mi and 12,000mi per year. There are lower mile leases available, and that’s ideal for older drivers or strictly local driving. 15K miles is typically the upper limit of mileage on a lease before the payment becomes competitive to a finance payment.

How do I return my VW lease?

Just bring it back to us! A few months out from lease-end, you’ll receive communications reminding you about this. At this time, we help you coordinate lease-end inspections, buy-out options, and new leases from Volkswagen. Volkswagen lease returns are easy!

Can you turn in a VW lease early?

Yes! We know that you might have the latest version of your current VW in your sights and don’t want to wait. Typically, your current car would come back to us in the form of a trade, taking into account the remaining payments and equity position. Simply terminating a lease will have many fees and stipulations, so make sure you understand the benefits of completing the term of your lease before terminating one.

Leasing or financing is a personal decision that usually frames an individual strategy. Typically, financing is better for high mileage drivers, and leasing is better for average to lower mileage drivers. Some good rules of thumb that will apply to either payment structure are as follows:

The more money you put down, the lower your payment is going to be
The lower the capitalized cost (through incentives, etc.), the lower the payment will be
The longer the term, the lower the payment
The better your rate, the better your payment
We hope you have enjoyed this overview of leasing VS. financing! Please contact one of our sales team or finance managers if you have any additional questions. Either way, you’ll have to fill out our credit application, so why not get a pre-approval in place with our secure online application? From there, all you have to do is browse our new car inventory, pick your favorite, and drive home!