Leasing vs financing a new VW car
The dream situation for anyone wanting a new car is likely to have the cash, show up and purchase it just like you would with anything else you wish to own, but few of us have $20,000 or more just sitting around in our bank accounts. For this reason, you may show up at the Compass VW dealership and wonder what the benefits are of leasing vs financing a new VW car. Buying seems like the obvious choice as a sort of investment, but the monthly costs of leasing are frequently much lower.
Why should I lease a 2016 VW Jetta?
Easily one of the more tempting options for a lease are going to be economy vehicles like the 2016 Volkswagen Jetta. If you play your cards right and you have decent credit, you can drive off in a new vehicle and end up paying less than you do for your cable bill. You can find some excellent leasing specials during holidays and sales events, and they often pair together with the same discounts you receive as a part of a special promotion, such as the College Graduate Program. For this reason, you’ll be paying less overall to drive a new car.
A low monthly payment is one benefit of leasing, but there are a few more. What you’re essentially doing when leasing is renting a car, and therefore paying to use the vehicle for a set amount of time, typically 24 or 36 months. The monthly payments are lower because you’re paying for an estimate on the life expectancy of a vehicle, and only paying for what you will use. This is why leases have limits on mileage as well. If you don’t expect to go over on mileage, there are a lot of benefits to this system.
We’ve already covered monthly costs, but you’ll also save money because leases fall within the warranty period for a new car. That’s right, everything that’s covered under warranty will be covered for you for the entire time you drive the model, and then you return it before the warranty ends. This means costly repairs aren’t coming out of your pocket.
People who lease tend to keep on leasing because you always get the latest and greatest gadgets and features. Because you’re saving more money, you might also be able to lease a higher trim level depending on your budget.
If leasing is less expensive, why buy a new VW?
You show up to the dealership with the lease pricing in mind, only to find out that the actual cost of purchasing a car will be higher. Why might you still choose it as an option?
One of the main reasons you should consider buying a car is if you know you’ll drive more than 10,000 to 12,000 miles in any given year. Every mile over your contract is going to cost you, and you’ll also be paying for any undue wear and tear.
Another reason you might opt for the purchasing option is purely the pride of ownership. You can customize your car, give it a fresh coat of paint and you won’t be afraid to teach your teen how to drive it if you know you don’t have to trade it in (not that you want dents and dings). The obvious benefit of ownership is also the fact that it is generally less expensive to pay for occasional maintenance than it is to pay a set monthly fee. If you keep up on maintenance, it’s less likely you’ll have a major repair down the line. When you lease, the monthly payment never ends.
So how do you decide between purchasing and leasing your next VW? Generally, it will come down to you and your lifestyle. It might come down to what is affordable for you at this time, whether you’re the type who needs to upgrade every few years and just how much you drive on an annual basis.
We hope this post helped you decide what’s best for you, but if you need things cleared up any further our finance professionals would be happy to go over your options for any particular model. Until then, be sure to check back here at the Compass Volkswagen Blog for more posts like this one.