Buying vs Leasing | Gurley Leep VW, Mishawaka IN

When it comes to buying or leasing a car the options can be confusing. To help you make an informed decision we have provided the information below. We hope you find it informative and useful.

When you purchase a new car, you pay for the entire cost of the vehicle. When you lease a new car, you pay for only a portion of the vehicle's cost, which is essentially the part you use during the time you are driving it.  Volkswagen always offers a number of specials and incentives on financing and leasing, so be sure to take a look at those when making your decision. 

The summary below outlines the most important differences to help you decide which is best for you.  Fill out the online form to start the financing process or visit our Finance Department to learn more about financing options for your new Volkswagen.

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Buying Leasing
Ownership You own the vehicle and get to keep it as long as you want it. You don't own the vehicle. You get to use it for a finite period of time, and usually for a limited number of miles.
Up-Front Costs If you are financing, there will typically be a down payment or equity from a trade-in. Down payments range from zero to several thousand dollars, plus other fees.
Monthly Payments Typically these are higher than with a lease, because you are gaining equity in the vehicle. Monthly payments are almost always lower with a lease payment, because you are mostly just paying for the depreciation for the time you use it.
Early Termination If you decide you don't want the vehicle any more, you can sell it or trade it in on another one, keeping in mind what is owed, and what the vehicle is worth. Ending a lease early will result in early termination fees, up to as much as the remaining balance of the lease.
Vehicle Return When you are ready to move on, you can either sell your car or trade it in on another, again depending on if there is a balance owed. When your lease is up, you turn the car in, and as long as you haven't gone over in miles or there isn't more than normal wear, you walk away, and start over with another vehicle.
Mileage You can drive your vehicle as many miles as you like, keeping in mind the higher the miles, the less value it will maintain Almost all leases will have language that limits the number of miles allowed during the lease term. Going over this number will result in additional fees.
Excessive Wear Like mileage, it is yours to do with as you wish, but excessive wear will obviously make it less valuable when you want to trade or sell it. Again, like mileage, if your vehicle suffers more than normal wear and tear, additional fees will apply. Be sure you know what is considered normal wear and tear according to your particular lease.