Buying vs. Leasing
When you're in the market for a new car, all of the purchasing options can leave you feeling lost in a whirlwind of terminology and financial estimates. In order for you to make the best decision possible, you need to really understand all of your options and what they mean in the long run. At our Volkswagen dealership near Concord, NC, we want you to feel informed and confident when you drive off the lot with your new (or new-to-you) vehicle. To that end, we've provided a handy guide to help you nail down the critical differences between buying and leasing. What are you getting? Who are you paying, and when? Read on to find out!
WHO OWNS IT WHEN I BUY?
WHO OWNS IT
Whether you pay up front or choose to finance your new vehicle, it belongs to you. It is, however, subject to repossession should you opt to finance it and fail to make your monthly payments.
WHO OWNS IT WHEN I LEASE?
WHO OWNS IT
When you lease a vehicle, you are paying for its use, similar to a long-term rental. The vehicle still belongs to the institution from which you leased it and to whom you are making payments.
WHAT ARE THE UP-FRONT COSTS WHEN BUYING?
If you choose to finance your purchase, the lender will probably ask you for a larger down payment, one based on your credit score and proportional to your monthly payments on the vehicle.
WHAT ARE THE UP-FRONT COSTS WHEN LEASING?
UP FRONT COSTS
Leases usually do not require hefty down payments! You will probably have to pay the first month's fee as well as a security deposit and other transaction fees, but a large down payment is completely optional. Of course, if you do put down money, it can significantly lower your monthly payments.
WHAT IS THE FUTURE VALUE WHEN BUYING?
The future value of your car depends on the model and on how well it is taken care of. We can value your trade-in here at Keffer, and give you advice on long-term values of popular vehicles.
WHAT IS THE FUTURE VALUE WHEN LEASING?
Because you don't end up owning a leased vehicle, you also don't have to worry about selling it. You may be charged for extra wear and tear when you turn it in, but the responsibility for resale is off your shoulders!
WHAT HAPPENS AFTER I'VE COMPLETED MY PAYMENTS WHEN BUYING?
END OF PAYMENTS
Once your payments are made in full, the vehicle is yours, no questions asked! You will be issued a "Lien Release" document proving you alone own the car.
WHAT HAPPENS WHEN I'VE COMPLETED MY LEASE PAYMENTS?
END OF PAYMENTS
You have several options when your lease ends. You can return the car to the dealer, and then choose to lease again or purchase a new vehicle. You can also opt to extend your lease and keep the vehicle for a few more years. Finally, you can choose to purchase the vehicle for a price based on how much of the total value you've already paid off.