Should You Lease or Buy Your Volkswagen?
Trying to decide on the best way to drive a new Volkswagen car, crossover, or SUV in the Santa Monica area? If you’ve been wondering, "Should I buy or lease?" we have your back! Most VW dealers in California will tell you the same thing: It's a matter of preference. Read on to learn about these two different options and find out which is right for you!
Lease vs. Buying: Pros and Cons of Leasing
The Benefits of Leasing
For drivers who want to avoid the hassle of financing and buying a vehicle, leasing is a viable alternative. Here’s what we like about most leasing agreements:
- By leasing a car, you finance only the depreciation of the vehicle and return it at the end of the lease period (usually 2-3 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 lease the latest models and return the vehicle before age-related issues set in.
Whether you drive a VW in Los Angeles or West Hollywood, you’ll want to be aware of one more significant benefit! Volkswagen is well-known for their leasing specials and incentives, which means it’s easy to find an exceptionally low monthly payment.
The Downsides of Leasing
Although leasing with your favorite Santa Monica car dealerships is often a smart way to drive, there are some significant drawbacks. Most contracts include each of the following features:
- Annual mileage restrictions
- Overage fees for drivers who go over their limit
- Penalties for returning the vehicle in poor condition
- Zero equity build-up in the underlying asset
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 a requirement for both paths, but drivers who’ve had financial difficulties will probably find it easier to lease a new vehicle.
Lease vs. Buying: Pros and Cons of Buying
The Benefits of Buying
For some drivers, the benefits of financing or buying their vehicle outright will be self evident! If you've been wondering, "Should I buy or lease?" you'll definitely want to consider the following points:
- Buying your vehicle ensures that you own it outright once the loan is paid in full. Even while you're financing, you should be able to customize or modify the vehicle as you see fit!
- If you plan to drive the same car for a long period of time, then this is the right choice. You can start working towards full ownership right away.
- If you need to drive more than lease mileage requirements allow, or you're the type who lives for the occasional road trip, you'll want to look at ownership.
The Downsides of Buying
Although full ownership makes buying a very attractive option, there are some caveats to be aware of. Here are some of the most important:
- Buying your vehicle involves being able to afford a 10 to 20 percent down payment. Buying a vehicle is generally more expensive, at least at first. However, payments will decrease as you make progress on your loan.
- When you buy, you'll bear ultimate responsibility for the depreciation of the underlying asset.
- If you can't make your payment, you'll be at risk for dispossession. So, if you're nervous about such a prospect, you'll want to choose a lease, which will generally offer a lower monthly payment.
Lease or Buy Your Next Volkswagen at Volkswagen Santa Monica
So, what's your final answer to the question, “Should I buy or lease?” No matter which option you've settled on, you'll have a better experience when you choose us over other Santa Monica car dealerships.
Ready to get started? 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're just a short drive from L.A. or Brentwood, and we'd love to help you choose the right Volkswagen for your automotive needs.