Next to purchasing a house, buying a new car is one of the most costly purchases you can make; as such, it is wise to look at the available options. Leasing and purchasing both have their own pros and cons, little different than buying your home vs. renting.
The primary difference is that when you lease you can drive a new car every three years and you are not the one faced with disposing of the car at the end of the lease; simply take the car to the dealer, hand over the keys and negotiate a new lease.
Buy or lease; what to consider:
* Cash flow: In the majority of cases it costs less per month to lease than it would cost to finance the purchase of the same vehicle. When you buy a car you finance the entire vehicle cost, when you lease you are paying for the depreciation only.
* Save on down payment: The down payment that is expected when leasing a car is usually quite low; also, the sales tax on a lease is less than the tax on a purchased vehicle. When you consider a low down payment and smaller tax bite, a Volkswagen lease in Plainfield has less of an impact on your budget.
* Driving habits: The number of miles that you can put on a lease car each year during the three year period is capped, often at 12,000 miles. If you drive more than that you can expect to be charged for every additional mile you drive. If you expect to exceed the mileage cap you may be able to negotiate a favorable dollar per mile charge at the time you enter into the lease agreement.
* Taxes: If the car is driven for business purposes a goodly percentage of the cost of the lease can be written off against taxes, the interest that you pay when you finance a car is not deductable.
The decision of whether you lease or buy your new Volkswagen all boils down to your driving needs and your budget; both have advantages and disadvantages.
For many people a Volkswagen lease in Plainfield makes a great deal of sense. To discuss the particulars in detail you are invited to visit Hawk Volkswagen of Joliet.
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