Should You Lease or Buy Your Volkswagen?
Trying to decide whether you should lease or buy a new Volkswagen vehicle in the Santa Monica area? Read on to learn about these two different options and see which one is right for you at Volkswagen Santa Monica.
The Benefits of Leasing
For drivers who want to avoid the hassle of financing and buying a vehicle, leasing is a viable alternative. By leasing a car, you finance only the depreciation of the vehicle and return it at the end of the lease period (usually around a few years). Your payment is likely to be lower than your equivalent payment on the full value of the car, thereby saving you money for the duration of the period. Although you’ll still need to maintain the vehicle, leasing ensures you have a stable, consistent monthly payment. You’ll be able to purchase the latest models and return the vehicle before age-related issues set in.
The Downsides of Leasing
The main downsides associated with leasing a vehicle include annual mileage restrictions, overage fees for drivers who drive more than the required annual mileage limit, the need for the vehicle to be returned in good condition, and zero equity build-up in the underlying asset itself. You’ll definitely want to make sure that leasing is right for you - treat it like renting an apartment versus owning a home. Good credit is also a requirement.
The Benefits of Buying
Buying your vehicle ensures that you own it outright once the loan is paid in full. If you plan to drive the same car for a long period of time, then this is the right choice. Additionally, if you need to drive more than lease mileage requirements allow, you’ll want to look at ownership instead.
The Downsides of Buying
Buying your vehicle involves being able to afford a 10 to 20 percent down payment, depreciation of the underlying asset, and potentially-larger monthly payments. You’ll also be at risk of repossession if you’re unable to afford your loan payments.
Lease or Buy Your Next Volkswagen at Volkswagen Santa Monica
Check out our auto loan calculator for Santa Monica, CA drivers, and be sure to contact us at the dealership if you have any questions about leasing or buying a new vehicle. We look forward to helping you choose the right Volkswagen for your automotive needs!