Lease vs Buy
8 Reasons to Lease vs. Buy Your Next Volkswagen
If you’re trying to decide whether you want to buy or lease a vehicle, it can be helpful to read about some of the reasons to lease. Leasing not only reduces your commitment but can also give you better financing options that match your budget. No matter what option you choose to go with, here at Capistrano Volkswagen we are committed to getting you into a vehicle that fits your needs. Keep reading to learn about some of the exciting benefits of leasing a vehicle versus buying one.
Leasing Offers Lower Monthly Payments
One of the main benefits of leasing a vehicle is that your monthly payments are typically lower. While buying a vehicle can offer you additional modification options, if you’re interested in reducing the bottom line, then leasing might be the right choice for your budget. When negotiating your lease, you may receive a payment plan that’s more affordable than a monthly loan payment that you’d pay if you financed the vehicle. A lease payment is also significantly lower than what you’d pay if you purchased the vehicle outright. Because of these lower costs, leasing can be a budget-friendly option.
Leasing Requires Less Cash Initially
Leasing a vehicle typically requires less cash initially, which means that a wider variety of models can fit into your budget. This is a great option if you’re interested in driving a new vehicle off the lot. If you’re looking to minimize the cost of a new vehicle, then consider leasing instead of buying.
You May Have Lower Repair Costs
Repair costs are yet another aspect of vehicle ownership that can cost you money. When you buy a vehicle, you’re responsible for paying for all the necessary maintenance and repairs. If you decide to lease, then you can rely on the dealership to pay for some of the repair costs. While leasing can help you save money on repairs and maintenance, it’s important to review the exact details of your contract so that you understand what you’re liable for and what the dealership is able to cover.
You Can Get a New Vehicle More Often
Leasing a vehicle makes it easier to get an upgrade when new models come out. In contrast, if you want to replace a vehicle that you’ve bought, then you need to first sell it before going through the process of buying a new one. This can take time, effort, and money. In some circumstances, the vehicle you sell might not cover the cost of the new one you’re hoping for, which can mean it’s necessary to purchase a different one in the end.
If you choose to lease, then you can always trade it in for a newer model once your lease expires. When your lease ends, you also don’t have to worry about what you need to do to replace your vehicle. You can simply trade it in at our dealership and negotiate a lease for the new model. Because leasing allows you to stay up to date with all the exciting new models that come out each year, this can be a great option for you if you like the idea of driving the newest vehicles.
You Have Access to More Models
Since leasing is often less expensive than buying, it can offer you access to more models and trim options than might be available to you if you were planning to purchase a vehicle. This can allow you to drive your dream vehicle off the lot and ensure your ride is always up to date.
Additionally, qualifying for financing to buy a new vehicle is a process that can take some time to complete. If you need to get behind the wheel quickly, or if you’re just interested in accelerating the process of getting your new vehicle, then leasing is a great choice.
You Don’t Have To Pay as Much in Sales Tax
When you buy a vehicle, a portion of the final cost is sales tax. In comparison, when you lease, you don’t have to worry about paying sales tax on the entire cost of the vehicle. This can be a great budget-friendly option. If you’re interested in saving money and avoiding paying sales tax, then leasing your next vehicle can help you keep more money in your wallet while still allowing you to drive off the lot in the perfect vehicle for your needs.
Leasing Can Give You More Tax Deductions
If you’re leasing a vehicle that you will use for business purposes, then you might be able to write off a portion of the expenses on your taxes. Since the IRS allows you to deduct both financing costs and depreciation on each monthly payment, choosing to lease can help you save money during tax season. Keep in mind that these deductions might not be available to you if you’re leasing a vehicle for your personal use and not for business reasons.
You Can Buy the Vehicle Once Your Lease Ends
If you’re still not sure whether you should lease or buy, you can always retain the option to buy your vehicle once the lease ends. By keeping the option to buy the vehicle, open leasing allows you to drive the vehicle you want without making a large commitment.
Since you can buy the vehicle once the lease expires, leasing can also be a good way to hedge your bets if you aren’t sure about leasing versus buying the vehicle. Then, if you decide that you don’t want to buy once the lease expires, or that you’d rather upgrade to the newest model by signing a new lease, there’s no obligation for you to make a purchase.
These are just some benefits of leasing a vehicle versus buying. There are certainly advantages to both options, so before you decide on what you want to do with your next vehicle, consider spending some time researching the pros and cons of both. Did we answer all of your questions? If not, please give us a call and one of our capable team members can help you make the right choice for your needs.