Low Monthly Payment for your Lease in San Juan Capistrano

The Benefits of Leasing

You have picked out your new ride, and now you have to decide how to pay for it. If you are like the vast majority of people, you’re not likely to be paying in cash. Your choices come down to financing the car through a loan, where you own the car after the last payment or leasing it from the dealer, where you can return the vehicle after two or three years with no questions asked.

Leasing a car is a choice that many are making today because it provides practical and financial benefits. A car lease can help lower your monthly car payment, save on maintenance costs, limit your exposure to sales taxes, and protect you from the value-sapping effects of depreciation. The benefits of leasing are real and may be exactly what you need to bring home that car you really love. 

Lower Monthly Payments

The most obvious advantage in leasing comes in the form of a question that every car customer has at one point or another: What’s my monthly payment going to be? In most instances, the monthly payment on a lease will be less than the monthly payment on a traditionally financed loan.

Why is that the case? It has to do with how the two types of payments are calculated. Lenders base the monthly payment of an auto loan on the full price of the car as negotiated, plus interest, spread out over a specific time period — typically between three and six years.

Car leases have different starting points. They are calculated using a set of variables that essentially account for the vehicle’s depreciation over a defined period — usually, either two or three years. Think of a car lease as the equivalent of paying the value of a long-term car rental. 

Additional variables go into calculating the monthly payment on an auto lease. However, these variables sometimes can be adjusted to produce a lower monthly payment. Talk to the Finance Center experts at Capistrano Volkswagen to learn how this works.

The down payment is another area of potential savings in connection with a car lease. Depending on your credit rating, you may be able to qualify for a “sign-and-drive” deal, which means you can secure your lease without having to make a down payment.

Lower Repair and Preventive Maintenance Costs

In leasing a car, you can limit both your repair and your regular maintenance costs. The car you lease will be brand new — just off the manufacturing line. You will lease it during what should be the least troublesome period in the car’s history before racking up the miles and seeing those miles take their toll. Yes, things can still go wrong in the first few years of a car’s life, but remember that you will have warranty coverage to take care of those issues. 

Your main obligations during the lease period will be in preventive maintenance costs such as regular oil changes or tire rotations. Depending on the dealer and the terms they offer, your lease may well cover the cost of these types of items in the first couple of years of car ownership. 

The risk of major maintenance expenses increases beyond the fourth year of ownership. That’s when cars tend to need bigger repairs, such as a new exhaust system or new brakes. Car leases help you sidestep these concerns since most leases last a maximum of three years.

Latest Features/Technology

Car leasing puts you in the driver’s seat in accessing the latest features and technologies in today’s cars. The pace of innovation in car-making has accelerated dramatically in the past 10 years with the integration of new driver safety and display technologies and through greater connectivity with mobile phones. Who would ever have predicted that almost every car would have a built-in touch screen, for example?

While no one can say for sure what the next model years will bring, we can be fairly certain that cars, trucks, crossovers, and SUVs will look and operate differently, with new and exciting bells and whistles. Since leases are usually only two or three years in length, this puts you in the best position to take advantage of advances in technology and have some fun at the same time. 

More Flexibility for What Comes Next

Moving on from your old vehicle becomes easier with a car lease since you do not own the car. When the lease period ends, you can return the car to the dealer and walk away with no future transactions; purchase the car by paying the so-called “residual value” on the vehicle, or return the car and roll right into another lease. 

In contrast, you have a stake in your vehicle when you are paying on a traditional loan. If you’ve decided you no longer want it, you have to dispose of it somehow — either by selling it to a willing buyer or offering it as a trade-in during a transaction with the dealer. In either case, making sure you are getting a fair price on that sale or trade-in can become a headache. This flexibility is one of the prime advantages of leasing.

Leasing Vehicles from Capistrano Volkswagen

Whether you are looking for a sedan, crossover, or full-sized SUV, Capistrano Volkswagen, serving San Juan Capistrano, California, and other areas in the greater Los Angeles region, will work with you to find a vehicle and a lease that fits your needs. If you prefer owning over leasing, our finance center professionals maintain relationships with top area lenders and can find you a loan that fits your budget.

As a full-service dealership, Capistrano Volkswagen can also help you in your search for a used vehicle. We offer used vehicles from all leading manufacturers, including Volkswagen. Check out our selection of certified pre-owned Volkswagens and learn more about the Volkswagen Certified Pre-Owned Program.

We’d love to work with you! Contact us online or call us today to discuss your options or to set up a test drive.

Image via Flickr by free pictures of money