Is it Better to Lease or Buy a Car?
One of the things we love about working at Fifth Avenue Volkswagen is the joy we see on our customers’ faces when they finally find the vehicle they want to take home. One of the most crucial decisions our customers need to make during their visit to our showroom is whether they want to lease or buy the vehicle they’ve picked. Both options have pros and cons, depending on the customer’s vehicle requirements and financial situation. Our team believes that educated customers are happier customers, so they put together a few things about the advantages and disadvantages of buying versus leasing a new vehicle.
Advantages of Leasing a New Volkswagen
Leasing is a tremendously popular financial tool available to Fifth Avenue Volkswagen customers. There are several reasons why people choose to lease their new vehicles. One of the top reasons our customers take this route is that they can get a new Volkswagen platform, with the latest features and technology, on a shorter timeline. However, there are many more reasons to choose to lease a VW like:
- Lower monthly payments
- Less cash is required upfront
- Lower (if any) repair costs
- More vehicle options to consider
The end of a lease might be another reason people choose this option to take a new car home. When the term expires, the customer can basically drive the vehicle to the Fifth Avenue VW showroom, drop it off and drive away in their next leased vehicle. Also, if someone has truly fallen in love with that particular vehicle, they have the option of buying it outright.
Advantages of Buying a New Volkswagen
Obtaining a loan and financing a vehicle purchase this way is the more traditional option, and still a great choice for a lot of customers. Just like leasing, there are a few distinct advantages of going this route, including:
- Car payments eventually end
- No mileage restrictions
- Customers can build equity
- Paying on-time can build (or re-build) credit score
Additionally, when a customer chooses to buy a vehicle, they have more flexibility to outfit it with exactly the kind of aftermarket parts they want. Oftentimes, any improvements made to a leased vehicle will need to be removed, leading to excessive wear and tear fees.
Not every Fifth Avenue Volkswagen customer is the same. If you have additional questions about the advantages of leasing or traditional financing, make an appointment with us, today.