Figuring Out the Best Way to Get Behind the Wheel of a New Volkswagen Car
So, you’re finally ready to upgrade to a new Volkswagen car. You’ve done your research, and you may have even narrowed down your selection to a specific model, trim, and color. However, before you start signing paperwork, a crucial query must be addressed: should you lease a Volkswagen or purchase?
For first-time car buyers or those who have only secured cars using one method, there’s never been a better time to take a fresh look at how leasing and purchasing compare. There are several pros and cons to consider for each one, so it’s important to take the time to evaluate them. Your current financial situation, personal circumstances, driving habits, and other factors all play a role in this decision.
Once we’ve covered the pros and cons of leasing and purchasing, we’ll explain where to find the best
new Volkswagen cars and SUVs in Houston.
Understanding the Difference Between Owning and Leasing a Volkswagen
Before delving into the specific pros and cons of purchasing and leasing, it's important to establish a clear distinction between the two. Purchasing involves acquiring a vehicle through either a full cash payment or an auto loan. In either case, the vehicle becomes the property of the driver. Conversely, a leased vehicle remains the property of the organization leasing it. Similar to renting, the driver makes monthly payments to use the vehicle, but never gains any equity. When the driver’s lease contract is up, they have the option to purchase it or return it.
Should You Lease a Volkswagen?
The following breaks down the primary benefits and drawbacks of leasing a vehicle.
Pros of Leasing- Lower monthly payments: Lease payments are nearly always less expensive than purchase payments. Leasing also typically involves fewer upfront costs, which is why consumers on a tight budget prefer it.
- Regular upgrades: The typical car lease lasts two or three years. Once the contract is up, drivers can turn in their current leased vehicle for a brand-new one. If you lease a Volkswagen, you can switch over to a new one every few years.
- Warranty coverage: According to Car and Driver, most leased vehicles come with a bumper-to-bumper warranty that lasts three years or 36,000 miles (whichever occurs first). Of course, different manufacturers have different warranty terms for leases. Some may be better than others.
Cons of Leasing- Mileage limitations: Leasing companies don’t want drivers racking up a ton of mileage on their vehicles, which is why lease agreements stipulate an annual mileage allotment. For example, a lease agreement may limit a driver to the annual equivalent of 1,000 miles per month. If you end up exceeding the allotted amount, it will result in expensive mileage penalties. Mileage limits usually don’t bode well for drivers with long commutes and road trip enthusiasts.
- Zero equity: Although leasing reduces your car payment and provides a cushion to your monthly budget, you won’t accumulate any equity in the vehicle.
- Possible damage penalties: At the end of the lease period, the vehicle is inspected for damage. Every instance incurs a fine or penalty that the driver is responsible for. Drivers who have a hard time maintaining a vehicle due to messy kids or pets should be especially mindful of this.
Should You Purchase a New Volkswagen Car?
The following sections detail the advantages and disadvantages of buying a new vehicle.
Pros of Buying- Unlimited mileage: Whereas leasing caps your mileage, ownership grants drivers the freedom to rack up as many miles on the odometer as they want without penalties. If you love cross-country driving, purchasing is likely the best route for you.
- Ownership privileges: Ownership means you have complete control of what you do with your vehicle, meaning you can sell it at your discretion, including using its equity as a down payment for a new vehicle purchase.
- Customization options: Vehicle owners can personalize their cars to their liking, including window tint, custom decals, vinyl wraps, aftermarket audio setups, and more.
Cons of Buying- Initial costs: Purchasing a vehicle typically means making a large down payment, state taxes, registration fees, and other charges.
- Higher monthly payments: Buying a new Volkswagen car will result in a higher monthly payment when compared to leasing; however, drivers gain equity with each payment.
- Maintenance expenses: When drivers buy a new car, it typically includes a warranty that covers vehicle defects and certain routine services. Other maintenance expenses and repairs outside of the warranty’s coverage are the owner’s responsibility.
Should You Lease a Volkswagen or Purchase? Making a Choice
There’s no definitive right or wrong answer when comparing purchasing versus leasing. It all comes down to individual circumstances, cashflow, driving habits, and other personal factors.
If you’re the type of person who doesn’t drive very much and prefers to keep their car payment as low as possible, leasing may be the best option for you. However, if you prefer driving without restrictions and want your payments to yield equity, purchasing is probably the way to go.
Whether you decide to purchase or lease a Volkswagen, the friendly team at VW Cypress can help. We offer plenty of attractive leasing options on
new Volkswagen cars and SUVs. Additionally, we can help interested buyers
secure financing on a new or used Volkswagen for sale.
To check out vehicles we have in stock or to take a test drive, visit Volkswagen Cypress at 11411 FM 1960 West in Houston. As one of the leading VW dealerships near you, we have a great variety of new, used, and
certified preowned vehicles that have undergone a 100+ point inspection.
Contact the VW Cypress team at
(281) 532-8824 or send us an email using the
contact form on our website.
