How to Choose Between Financing and Leasing a New Volkswagen

Lease vs Finance Basics

Leasing and financing are two popular options that allow you to break the purchase price of a new vehicle into monthly payments, but each has distinct advantages. Understanding these differences can help you make the best decision for your needs.

Financing

Financing a new vehicle, or taking out an auto loan, involves making monthly payments until the vehicle is fully paid off. Here’s how it works:

• Typically requires a down payment of 10-15% of the vehicle’s purchase price.
• A lender covers the remaining cost, and you repay the lender through monthly payments, which include both the loan principal and interest.
• While monthly payments may be higher than leasing, you will own the vehicle outright at the end of the loan term.
• No mileage restrictions, making it ideal for those who drive extensively or have long commutes.

Leasing

Leasing allows you to drive a new vehicle for a set period, typically between 24 and 48 months, with lower monthly payments compared to financing. Key points include:

• Leases usually require lower or no down payments, but you will need to pay a lease initiation fee.
• Monthly payments are based on the vehicle’s depreciation over the lease term, not the full purchase price.
• At the end of the lease, you can either purchase the vehicle at its residual value or return it and lease a new one.
• Leases often come with mileage limits and charges for excessive wear and tear.

What’s Right For Me?

Choosing between leasing and financing depends on your personal preferences and financial situation. Here are some considerations:

Leasing might be right if you:

• Prefer lower monthly payments.
• Enjoy driving a new vehicle every few years.
• Have predictable driving patterns and stay within mileage limits.

Buying might be right if you:

• Want to own your vehicle eventually.
• Drive many miles and don’t want mileage restrictions.
• Plan to keep your vehicle for a long time.

The Vancouver VW Finance Center is here to help with exploring finance options. You can Value your Trade, use our Payment Calculator or Apply Now to see if you qualify right away.

Get Started with Vancouver VW

Whether you decide to lease or finance, Vancouver VW is here to assist you. Visit us at 4575 Main St, Vancouver, BC V5V 3R4 to explore our inventory, schedule a test drive, and speak with our financing experts. We proudly serve Vancouver and the surrounding communities of Burnaby, Richmond, Surrey, and Coquitlam.

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