For drivers in the Rome, Utica and Manlius area shopping around for a new Volkswagen, one question tends to pop up: “Should I buy or lease?” This is a great question to ask when you’re preparing for a new car; however, there are plenty of pros and cons to both. That’s why we’re going to list them so that you can decide the best option to suit your needs.
One of the main advantages to leasing a car is money. When you lease a car, not only is your down payment lower, but your monthly payments are lower than if you purchased the car. Another huge benefit is the repair/maintenance costs. Most three year leases include great warranties that cover the car for its recommended maintenance, so taking your Volkswagen in for service won’t lead to a hefty bill.
At the end of your lease, you’re giving the car back to the dealership. You don’t really have to worry about trade-in values because it wasn’t really your car to begin with. This can be a pro or con depending how you look at it.
An obvious con to leasing a car is that you don’t own the car, and at the end of the lease you have to start the whole process over again. When you sign the lease contract, you agree to a mileage term. Typically, you’re allotted 1,000 miles a month, which seems like a lot, but it really isn’t. You need to factor in vacations and commutes to make sure you are safely under the 12,000 mile/year budget. If you happen to go over, you have to pay for those miles at the end of the lease, and they do add up.
Another drawback is the natural wear and tear the car will inevitably go through during your lease. When you bring the car back to the dealership, it will be carefully inspected to see any depreciation that may have occurred while it was in your possession. This will add up to a bill at the end of the lease, and it could add up to a number you didn’t expect.
The number one advantage to owning a car is, well, owning the car. It’s yours to do with as you like. Purchasing a car saves you money in the long run versus leasing a car. The monthly payments are higher than a lease, but you’re paying to own it, not borrow it for three years. You also don’t get charged for going over mileage. You can drive it as you see fit. Since you own the car, you’re not committed to some deal, and you can sell it/ trade it in whenever you want.
A disadvantage that buying a car has from leasing is the monthly payments. They’ll be much higher than the monthly payments with a lease. The down payment for the car will also be high, so expect to pay anywhere between 10% or 20% of the car’s overall value. When you buy a car, you receive warranties to cover any maintenance; however, these warranties expire, and after that you’ll have to pay for maintenance out of your pocket. This is a huge drawback considering that the costlier problems happen later in the car’s life, almost always after your warranty has expired.
When you’re ready to trade the car in to buy a new one, you may be hassled over your asking price versus the dealership’s offer. What you have to realize is that the investment you made when buying the car rapidly depreciates. A car will go down almost 20% in value during your first year of ownership, so be ready to take a financial hit when you trade it in for a new one.
Buying vs Leasing?
Now that you know the advantages and disadvantages to buying vs leasing a car, you’re ready to make your decision. When you’re ready to purchase or lease your car, stop by NYE Volkswagen of Rome. Our friendly automotive experts will let you know whether leasing or buying is the better option for your budget. We’re fully committed to customer satisfaction, so we’ll steer drivers like you in the Rome, Utica and Manlius area on the right path.