What You Need to Know About Buying vs. Leasing a Car

December 31st, 2019 by

It’s easy to get so caught up in the excitement of new car shopping that you forget to ask yourself one of the most important questions: How are you going to pay? You’ll have to commit to either buying or leasing, but before you do, there are some things you should know about each of those options. 

Car Buying and Leasing: Key Differences

Budget 

Leasing a Volkswagen is a great option if you want to drive a new car but don’t have the budget to currently buy. A lease agreement generally comes with a smaller down payment and lower monthly premiums. And once the terms expire, there’s a good chance you’ll have the option to purchase the car.

Buying, while more expensive on average, means you own the vehicle outright once you pay off the loan.

Length of Commitment

Consider the long-term goals of your investment. Are you willing to be tied up in a car for a lifetime — or at least until you can sell it? If so, buying is a perfectly suitable option for you. If not, leasing might be more your speed. The typical lease deal doesn’t extend beyond more than a few years. That means once it’s over, the lessee is financially free and clear.

Limitations

Every lease comes with restrictions, the most common being the amount of miles you can drive per year. That might not pose a problem to the average driver, but for someone who travels a lot, it can hinder plans. When you buy, you can put as many miles on the odometer as you want in a given year. You can also modify, sell, and trade at any time. And you can transfer the title at your leisure.

Maintenance

When you lease a car, you probably won’t have to worry about the warranty coverage running out. That means better prices on maintenance and repairs. As a buyer, you’re responsible for the vehicle’s upkeep for years to come. That’s why it’s a good thing that VW offers very competitive warranty plans on their new cars.

Finance a Volkswagen in Miami, FL

A generous selection of new VW cars for sale in Miami, Florida, awaits at Palmetto57 Volkswagen. So does a team of finance experts to steer you in the right direction. Be sure to check out our Volkswagen lease deals before you make the trip.