Deciding whether to buy or lease a new vehicle is a tough decision. There are a lot of factors to weigh including what type of vehicle you want, how often you plan to get a new vehicle and what your financial situation is. Before deciding to buy or lease, you have to weigh the benefits and the drawbacks of each.
Leasing usually means you can get a better vehicle for a lower payment. That’s because, when you lease a vehicle, you are only responsible for the depreciation of the vehicle for the amount of years you have it and not the full price. Leasing is also great for people who want to update their car every few years. Plus, you won’t have to worry about selling it later on or negotiating a fair price for a trade-in. Typically, leasing terms allow for the vehicle to stay within its warranty so there are fewer maintenance costs. You’ll also have lower up-front costs because leasing usually requires a smaller down payment.
However, leasing a vehicle is not a fit for everyone. For instance, if you have a longer commute to work, leasing isn’t the best option because lease terms set mileage limits ranging from 9,000 miles to 15,000 miles a year. At the end of the lease term, there’s a charge for every additional mile. Also, when you lease a vehicle, you have to drive extra carefully to avoid any damages and potential charges when your lease is up. You can’t make any permanent changes to a leased vehicle either – so customization is off the table. Lastly, when you lease you don’t build equity and, since you don’t own it, you’ll get zero dollars when you turn it in at lease-end.
On the other hand, when you buy a car, you own it. That means that you can customize your vehicle, won’t have mileage restrictions, no excess wear fees and, best of all, you won’t have to make any more payments once your loan is paid off. If you decide to buy a vehicle and finance it, you’ll need to be aware that long-term loans typically have a higher interest rate. Also, you’ll need a bigger down payment to make your monthly payments more affordable. But now, because you own it, it has value. You can sell it, for cash, any time! And if you do need a new vehicle, you can trade it for your down payment.
When you choose to buy or lease a vehicle, take into consideration your needs, driving habits and budget. At VW South Florida you’ll find many options to choose from. Whatever your decision, visit one of our conveniently located dealerships in South Florida – from Miami-Dade County to West Palm Beach – and drive away in your brand-new Volkswagen. We’re happy to help.