There is more than one option available when you decide it’s time for a new car. Depending on your wants and needs, you can either buy or lease, both of which come with their own sets of pros and cons. Before you make your decision, it’s important that you understand the differences between both options.
Volkswagen Leasing vs. Buying | What’s the Difference?
When you start shopping for a new car, make sure you understand buying vs. leasing. To help you make your decision, here is a simple breakdown of both options.
Buying
When you buy a car, it is officially yours once you pay off any loans you take out at time of signing. The title is under your name and you get to keep it as long as you want. You have the option to sell or trade in your vehicle at your leisure, and you can use the money from the sale to put toward another car or to pay off a loan balance.
If you’re buying a car and going with a loan, your monthly payments may be higher because you’re paying off the entire purchase price of the vehicle. However, over time, the vehicle will depreciate, so the cash value will decrease.
Buying a car means you are free to drive as many miles as you want since the vehicle is officially yours, but the more miles you put on the vehicle, the lower the trade-in or resale value. Excessive wear and tear will also expedite depreciation.
Leasing
Leasing a car means you don’t own it. You are permitted to use it for the duration of the lease period, but you must return it at the end, unless you decide to purchase it.
When leasing, you often have to pay the first month’s payment, a refundable security deposit, and additional fees. However, lease payments are almost always lower than loans because you are paying for the vehicle’s depreciation. You might have the option of ending your lease early, but there can be additional charges.
Most leases will limit your mileage to between 12,000 miles to 15,000 miles a year. Any additional miles might cost you. Excessive wear and tear outside of normal standards might also tack on additional charges.
Lease or Buy Your Next Car in Greeley, CO
No matter if you decide to buy or lease your next car, you’ll want to work with a reliable car dealership. If you’re in the Greeley area, come by Greeley Volkswagen and take a look at our variety of new Volkswagen cars for sale. We regularly run new Volkswagen specials each week, so you’re bound to find a car that fits your needs and budget. Contact us today to learn more.
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