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Have you found yourself asking, “Should I lease or buy a car”? We’re here to help answer that question! Buying a car is one of the biggest purchases you’ll make in your life, so we want to help ensure you get it right. In reality, two reasonable people could come to different conclusions when deciding how to purchase their new car, so we’ll break down some of the factors you should consider before you sign your name on the dotted line. If you’re considering a new Volkswagen in Montana, we’ll also run you through all the VW finance specials and VW leasing specials available so you can make the right choice for you. For more information, contact the Volkswagen Finance team at Volkswagen of Bozeman for assistance!
The easiest way to explain the difference between leasing and financing is like comparing renting and buying. When you lease a car, you’ll typically make a down payment and monthly payments over the lease term. Leases typically are a shorter-term commitment as opposed to financing, allowing you to upgrade more frequently. Leases also represent less risk to dealerships, as they still own the car, so your monthly payments will be much lower when you lease. On the other hand, financing is the more traditional option, and as such, is a bit more straightforward. If you have the means to purchase your car outright, you can certainly do that, but most buyers tend to get a loan. This gives you ownership of the car, allowing more flexibility to do what you please with it as opposed to a lease. Let’s break down the pros and cons of Volkswagen leasing and financing below!
Buying a car has the most straightforward benefits. You get all the amenities of being the car’s owner, affording you more flexibility to do as you please. You don’t have to worry about mileage restrictions or returning the car in good shape, you can treat it however you like. Buying a car means selling it or trading it in at any point, allowing more options. If you pay off the note on the car, you’ll get to live without paying for financing, making it a more affordable option in the long run. That said, buying a car is more expensive in the short term. Financing is significantly more expensive than leasing, meaning you’ll likely pay more both upfront and over the course of the loan. If you’re looking for dependable transport to last a long time, traditional financing probably will make the most sense for you.
While not quite as flexible as financing, car leasing offers flexibility in its own way. Leases are more of a short-term commitment, allowing you to move on from your car after a set amount of time. At the end of the lease, you can choose to purchase the vehicle, roll the lease into an upgraded model or extend the lease and keep the car you have! The big pull of leasing is how much more affordable it is in the short term. You can save big when leasing as opposed to financing, saving you thousands over the life of your lease. Since leasing is less risky to the dealerships, they’re able to offer leases at a lower price than financed cars. The downside of leasing is that you don’t build equity in the car, meaning you never truly own it. While more affordable in the short term, the lack of equity means that leasing becomes the more expensive option in the long term. Leasing makes sense for folks who are in a short-term mindset, and is especially helpful for folks who want to get into pricier performance models without locking that price in for five years.
At VW of Bozeman, we want to help ensure you make a financial decision that makes the most sense for you. Take advantage of our online resources, like our payment calculator to get an idea of how much a new car will cost you. If you’re bringing a trade-in, use our trade-in calculator to determine what your vehicle might be worth. Our VW Finance Center regularly runs specials on new and used inventory. To explore our VW leases and finance options, contact us today!
