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If you’re looking to take home a new VW vehicle, choosing between Volkswagen leasing vs. financing might seem complicated. To make the right decision for your circumstances, it’s important to consider the fundamental differences between leasing and financing a car. Then, you will be able to determine which is a better choice for you.
Once you’ve found the perfect Volkswagen car, SUV, or hatchback for your needs at Gunther Volkswagen Fort Lauderdale, it’s time to decide how you want to get behind the wheel. Scroll down for more insight.
There are two primary ways to start driving a new car. Leasing is essentially a rental agreement. Among other factors, your credit background and the expected depreciation of the vehicle will affect your specific Volkswagen lease payment rate. Fringe benefits include warranty-covered services and flexible lease-end options.
The other option is financing. This route requires you to take out a loan and make monthly payments until its completion. Then, you are the official owner of the vehicle. A similar path is to buy the vehicle outright, which means you pay for it entirely upfront.
The monthly installment for a leased car will generally be lower than if you had financed it. This is because the payments reflect the depreciation of the vehicle instead of the full price. Furthermore, most lease contracts run just 24 or 36 months. Once your lease ends, you are likely to have four options:
There are some restrictions to keep in mind when you lease. For starters, you will have an annual mileage cap that you will need to adhere to, typically ranging from 7,500 to 15,000 miles. If you drive more than the allowed mileage in your lease, you will be charged a per-mile fee. Lease agreements also usually prohibit permanent modifications to the automobile.
Financing a car generally means paying a higher monthly rate, but in the end, you own it as an asset. After that, you can keep it for however long you like, modify it to your preferences, and drive it according to your needs. When it comes to Volkswagen leasing vs. financing, there is no right or wrong way to get into the front seat of a new VW automobile; just the method that is best for you.
There are advantages to both leasing and financing a car. On the one hand, leasing enables you to stay current with the most up-to-date automotive technology. On the other hand, financing a vehicle gives you the freedom to use it without restrictions.
After thoroughly enjoying a leased Volkswagen, you can look forward to our seamless Volkswagen lease return process. The lease return will include an inspection of the car and payment for any additional fees (like excess damage or mileage). If you financed your vehicle, you can sell or trade it in at your discretion; however, any remaining loan balance will need to be taken care of.
Whether you’re planning to lease or finance your next Volkswagen vehicle, contact us to discuss all options, including any available high-mileage lease agreements. Our friendly team can walk you through Volkswagen leasing vs. financing based on your circumstances.
Leasing or financing is a personal decision. Financing is usually better suited for those who drive often or desire to build equity, while leasing is more attractive to those who need a short-term transportation solution or want competitive payments. Below are some generalizations that may apply to either structure:
We hope you have found this overview of Volkswagen leasing vs. financing to be helpful. Please contact our VW sales or finance team if you have any additional questions. We hope to work with you soon at Gunther Volkswagen Fort Lauderdale.
The price for extra miles on a Volkswagen lease is enumerated in the lease agreement. We cannot provide an exact number because the details of each lease contract can vary. Certain models may have higher excess mileage fees, for example. Contact the expert Gunther Volkswagen Fort Lauderdale team today to learn more about our VW lease options and overage rates.
The average annual mileage cap for a VW lease is between 7,500 and 15,000 miles. There is no firm mileage allotment across the board, as it can vary from lease to lease and lessee to lessee. Consult the leasing specialists at our VW dealership for further insight into mileage caps and overage fees. We will ensure you sign up for a lease that suits your unique driving requirements.
Prior to the end of your lease, you will receive communications from our team at Gunther Volkswagen Fort Lauderdale reminding you that it’s almost time to return your leased vehicle. We can help you determine your next step, whether you want to turn it in and walk away or even buy out your car. You have several options, and they all begin with a conversation with us.
It may be possible to turn in a VW lease early. However, there will usually be fees and stipulations. At our Volkswagen dealership, we can help ensure you understand the process and terms of ending your lease early. Alternative routes could entail transferring the lease or trading it in for a new one. Contact us for the full details about your choices.