Should I Buy or Lease a Car?

If it's your first time shopping for a new vehicle or it's been a while since you've been in the market for one, it's a good idea to go over your financing options to make sure you make the best choice for your budget and needs. One of the most common questions we answer at Street Volkswagen of Amarillo is “Should I buy or lease a car?” We'll be happy to break down the leasing vs. buying process. Once you know which option is right for you, check out our new vehicle inventory to see what piques your interest, and feel free to contact us with any questions!

Benefits of Financing

When most people buy a car, they go through a bank or other lending institution to finance the amount of the vehicle, enabling the buyer to make monthly payments to the lender. The lender profits from the interest they charge on the car loan, and the car buyer benefits from not having to pay the full amount for the car upfront. However, you'll likely have to make a down payment that amounts to a percentage of the vehicle's value based on your credit, meaning you only have to borrow and pay interest on the remaining amount, and you'll have full equity in the vehicle upon completion of your monthly payments.

Benefits of Leasing

One way to frame the leasing vs. buying choice is that financing is for buying a car, and leasing allows you to rent a vehicle for a period of a few years. While you won't gain any equity in the vehicle during the lease term, Amarillo drivers who lease a Volkswagen only have to pay for the amount of the depreciation of the vehicle during the lease term, meaning they typically pay lower down payments and lower monthly payments. Once the lease term is up, you can return the vehicle and swap it for something else or finance its remaining value.

Explore Leasing vs. Buying with the Street Volkswagen of Amarillo Financiers

Making the decision of leasing vs. buying can be difficult, so feel free to contact us if you still have questions about the different options and which is best for you. However, if you know which option is right for you, you can apply for financing online and pre-qualify in 60 seconds! At Street Volkswagen of Amarillo, our goal is to make getting behind the wheel of your next Volkswagen as simple and affordable as possible.