Tips on if you should lease or buy your next car

Wednesday, December 2, 2020

To Lease or Buy - that is the question. Which one is right for you? Volkswagen Cypress helps hundreds of customers find the right option for them.

Here are five questions you need to ask yourself before getting your next vehicle.

Do you Love the New Car Smell? If you are the type of person who wants a car with only a few miles on it, all the latest features, and the smell of a new car to permeate the air, then leasing might be the best option for you. Leasing allows you to "buy" a brand new car every few years with no penalty. You won't have to worry about being "upside-down" (e.g. owing more on your car than you can sell it for) or stuck in a car you don't like anymore. Plus with the tax credits Volkswagen Cypress offers to customers, they can lease without paying taxes on the entire cost of the vehicle. This makes leasing a really affordable option. When your lease is up, you can return the car back to the dealership and either lease another car, buy a different car with no negative equity, buy the same exact car that you leased, or simply turn in the keys and walk away.

Do You Want to Customize Your Car? For other drivers who want to invest their time, passion, and love into their car, buying is a better option. "We have a lot of VW enthusiast customers who pay cash for a car, or finance their vehicle because they know they are getting a car they are going to love, says Garcia." Buying a car is perfect for the driver who wants to add after-market upgrades on their vehicles like ski and bike racks, window tint, custom wraps, wheels, or get the perfect stance, altering the grille or changing bumpers.

What Stage of Your Life Are you In? Are you a college student who wants a reliable car but no commitment? Are you a busy parent who needs a certain number of seats for carpool but doesn't want to drive that car forever? Are you elderly and want a car with no debt? Are you a working professional that wants a new flashy car with the latest tech every few years? Leasing can be a perfect option for people in these stages of life. All the oil changes, tire rotations, and service checkups are covered when you lease, which allows for peace of mind for many drivers.

What Is Your Commute Like? One of the most compelling reasons to purchase rather than lease is the number of miles. Leasing does have mileage restrictions (normally 10,000 miles per year), so for heavy-use drivers, purchasing makes more sense, however, more miles means lower trade-in-values for purchased cars as well. Purchasing can be very attractive to drivers who qualify for low APR's per year - such as 0% for 6 years, which Volkswagen Cypress is offering right now - because the interest remains very low on their vehicle. This is a great option for families and couples who plan on taking road trips in their car now that traveling has changed.

How Much Can you Afford a Month? This is really the biggest differentiator between buying leasing. Buying is going to be a higher monthly payment than leasing. Leases can be done for less down payment - usually $1999 down but sometimes even $0 during certain times of the year. Right now Volkswagen Cypress is offering Sign Then Drive! Which means $0 down, $0 first month payment, and $0 security deposit. This promotion makes leasing much more attractive to the budget-conscious consumer. Payments on a lease range anywhere from 30-60% less than finance payments (this usually translates to about $100-$150 less each month).

"Another benefit to leasing is that the interest rate is usually lower, plus it comes with free GAP insurance," says Garcia. "On a lease, you only pay for the amount of time you use the vehicle. On a purchase, you pay all the interest and sales tax in the first couple of years. Typically, the first 3 years of payments go mostly to interest to the bank, which is why people get 'upside down', or have negative equity on their vehicle so quickly."

Purchase payments, on the other hand, will be higher and usually require more like 20% down, plus the full sales tax amount, but, remember that once you pay off the car it is yours! Plus many times manufacturers will offer bigger discounts on a purchase than on a lease. Right now at Volkswagen Cypress, they have many cars for as much as $7400 off MSRP on the remaining 2020s! Whichever offer you choose, we have fantastic offers and programs at Volkswagen Cypress to support you! Check out our inventory at vwcypress.com