4 Things You Need to Know About VW Cost of Ownership

September 27th, 2023 by

woman hugging a new car

Considering Owning a Volkswagen? Get Familiar with the Factors that Affect How Much You’ll Pay

When evaluating a car for sale, it’s easy to develop a case of tunnel vision on the sticker price. However, seasoned car buyers know that the sticker price is merely the first step in a series of fees, surcharges, and other vehicle-related expenses. To phase that another way, consumers must think in terms of total cost of ownership to see the big picture.

So, how is the total VW cost of ownership calculated?

Which expenses should consumers expect to pay upfront versus long term?

And how much money can vehicle owners expect to reclaim when they sell or trade in their car?

After covering the four main elements that affect cost of ownership, we’ll provide information about where drivers can test drive Volkswagen vehicles and the benefits of working with VW financial services on your upcoming auto loan.

Upfront Costs: Thinking Beyond the Sticker Price

Prepare to spend a good chunk of change upfront when you purchase a new vehicle. In most cases, consumers secure an auto loan for their purchase rather than paying a cash lump sum. Typical upfront costs include:

  • Down payment
  • Sales tax
  • Registration fees
  • Loan origination and documentation fees
  • Vehicle delivery and prep charges (if applicable)
  • Loan interest

Although many fees can be wrapped into your auto loan, some may not. It’s also worth noting that most dealerships don’t require a down payment, but it’s heavily recommended you make one for the sake of keeping your monthly payment down and qualifying for better loan terms. Remember, anything wrapped into an auto loan is subject to interest.

Ongoing VW Costs

Drivers are responsible for making monthly payments on their vehicle, which consist of principal and interest. However, monthly payments are just the tip of the iceberg when discussing ongoing vehicle costs.

For the duration of ownership, drivers will pay for:

  • Fuel or charging expenses
  • Routine maintenance, such as oil and filter changes and new tires
  • Repairs (if applicable)
  • Insurance premiums
  • Extended warranty costs (if applicable)

The good news is that drivers can estimate how much owning a Volkswagen costs with a little research. For example, you can calculate fuel expenses by dividing your monthly mileage by the vehicle’s miles per gallon. After you get that figure, multiply it by the cost of gas per gallon.

Pro tip 1: The VW Jetta gets the best fuel economy with an estimated 29 miles per gallon in the city and 42 miles per gallon on the highway. Want to retire from gas altogether? The all-electric VW ID.4 comes with three years of unlimited DC fast charging, meaning drivers won’t have to worry about fuel or charging costs for 36 months.

Pro tip 2: A good warranty can help vehicle owners drive down the cost of ownership. For example, all new VW vehicles come with Carefree Coverage. One of the big perks of the warranty is that it includes two years or 20,000 miles (whichever occurs first) of scheduled maintenance.

VW Cost of Maintenance

Although some maintenance services are included under the Carefree Coverage warranty, it doesn’t cover everything. After the first two years, all maintenance responsibilities fall to the owner, which means it’s a good idea to research how much it will potentially cost.

There’s good news on this front for Volkswagen owners. According to statistics shared by Car Edge, Volkswagen is ranked fourth in terms of least expensive vehicle brands to maintain. During the first five years of ownership, they estimate drivers spend approximately $2,107 on maintenance.

Vehicle Depreciation and Resale Value

The moment a new car is driven off the lot, it begins to decrease in value. No vehicle is immune to this. The process, known as depreciation, has a substantial impact on the total cost of ownership because it ultimately determines resale value.

As a vehicle owner, you want a car or SUV that will retain as much value as possible. Owning a Volkswagen is incredibly advantageous in this respect. According to recent reporting from Car Edge, Volkswagen is rated the best brand for five-year resale value at 85.53%. This means that you can count on your VW retaining the bulk of its value, regardless of the model of vehicle you select.

Ready to Reap the Rewards of Owning a Volkswagen? Visit VW Cypress!

Now that you know how VW cost of ownership is determined, you can move forward confidently knowing Volkswagen offers some of the most competitively priced vehicles on the market. Additionally, things like the cost of maintenance, vehicle depreciation, and resale value work in your favor compared to competing automakers.

The best way to kick things off is by visiting the VW Cypress dealership, conveniently located at 11411 FM 1960 West in Houston. We have a wide variety of new cars and SUVs that are jam-packed with features, use the most future-forward technology, and consistently deliver a fun and intuitive driving experience.

Need help securing financing? No problem! The Volkswagen finance department is happy to work with you on your new vehicle loan. Simply reach out to VW financial services to start the preapproval process. It only takes a few minutes to determine what type of new auto loan you qualify for.

Got questions or need to make an appointment? The VW Cypress team can be reached by phone at (281) 532-8824 or by email using the contact form on our website.

Posted in Volkswagen