Lease or Finance


Leasing and financing a car are two different approaches to acquiring a vehicle, each with its own set of advantages depending on your needs, preferences, and financial situation. Here's a breakdown of the benefits of leasing versus financing your next Volkswagen:

Advantages of Leasing a Car:

1.Lower Monthly Payments: 
  • Monthly payments are typically lower compared to financing because you're only paying for the car's depreciation over the lease term, not the entire vehicle's cost. 

2.Lower Upfront Costs: 
  • Leasing usually requires less money down compared to financing. This makes it easier to get into a new car without a large initial outlay. 

3.Driving a New Car More Often: 
  • Leases typically last 2-4 years based on your selection, allowing you to drive a new car more frequently. This means you can enjoy the latest technology, safety features, and models without committing to long-term ownership. 

4.Warranty Coverage: 
  • Most lease terms coincide with the manufacturer's warranty period, meaning you're less likely to face major repair costs since the car is under warranty throughout the lease. 

5.Less Concern About Depreciation: 
  • Depreciation is the leasing company's concern, not yours. At the end of the lease, you simply return the car without worrying about its resale value. 

6.Tax Benefits (for Business Owners): 
  • If you use the vehicle for business purposes, leasing may offer tax advantages since lease payments can often be deducted as a business expense. 

7.Flexibility: 
  • Leasing provides flexibility at the end of the term. You can choose to buy the car, lease a new one, or walk away without any long-term obligations.

Advantages of Financing a Car:

1.Ownership: 
  • When you finance a car, you own it once the loan is paid off. This allows you to keep the car for as long as you want without any further payments. 

2.No Mileage Restrictions: 
  • Financing doesn't come with mileage limits, so you can drive as much as you want without incurring extra fees. However, when trading in the vehicle, you are subject to the market conditions at that time without protection on resale value. 

3.Customization: 
  • Since you own the car after the loan is paid off, you're free to modify or customize it to your liking without worrying about violating lease agreements. 

4.Long-Term Cost Efficiency: 
  • Over the long term, financing can be more cost-effective than leasing, especially if you keep the car for several years after the loan is paid off. 

5.Equity Building: 
  • With financing, you build equity in the car as you make payments. This can be advantageous if you decide to sell or trade in the vehicle in the future provided you are not placing excess mileage onto the vehicle. 

6.No End-of-Lease Charges: 
  • There are no potential penalties for excess wear and tear, mileage overages, or termination fees that you might face with a lease. 

7.Freedom to Sell: 
  • You have the freedom to sell the car at any time, even before the loan is paid off, potentially recovering some of your investment. If selling before the loan is paid off, please note your next vehicle may be at a higher monthly payment as the loan-to-value ratio will be upside down.
 
Leasing is generally better if you prefer lower monthly payments, enjoy driving new cars every few years, and don't want to deal with the long-term maintenance or depreciation. Financing is better if you want to own the car eventually, drive more than the typical lease mileage limits, and are interested in building equity in the vehicle provided the parameters are met.

Please come and speak with your trusted McDaniels Volkswagen Sales Professional about these options on your next new Volkswagen Atlas, Golf, ID. Buzz, Jetta, Taos, or Tiguan. We are here to help you as your local new and pre-owned Volkswagen dealer in the Midlands, serving Columbia, Richland County, Lexington County, Irmo, Sumter, Orangeburg, & Newberry.