Financing vs. Leasing – The Benefits of Both

VW Financing and Leasing in Canada

So you’re considering buying a vehicle and wondering whether to finance or lease. We can help you decide and qualify for some excellent VW new or Certified Pre-Owned financing rates. Let’s talk about financing vs. leasing in Chatham, ON. There are benefits to each, and we’ll do our best to explain everything to you so you can be prepared when you visit one of our Finance Experts here at Volkswagen Chatham. Let’s get into the differences between VW financing and leasing in Canada!

VW Financing in Chatham

Upon the decision to finance a vehicle, you agree to pay over time towards the whole cost of the vehicle, and eventually, you’ll own it. Monthly payments are larger than with leasing. How it usually works is you make a down payment, and pay sales taxes and an interest rate. This rate is determined by your credit score. And when it comes to making your initial payment, you do it about a month after you sign the dotted line. Later, the possibility opens for you to sell or trade the vehicle for its depreciated resale or trade value. With financing, you can customize the vehicle however you like, and there are no charges for damages to the vehicle.

VW Leasing in Chatham

Now let’s touch upon the advantages leasing a vehicle in Chatham. When you decide to lease instead, you pay only a portion of a vehicle’s cost, determined by how long you drive the vehicle and how many kilometres you put on it. And at the end of the lease, you don’t actually own the vehicle; you’ll simply bring it back.

As for additional details, you have the option of not making a down payment, you pay sales tax only on your monthly payments, and you pay a financial rate that is similar to the interest characteristic of loans. You might be required to pay certain fees and possibly a security deposit, which you wouldn’t be paying on day one, necessarily. At lease-end, you’ve got the ability to either bring the vehicle back or purchase it for its depreciated resale value. You might end up responsible for a lease-end disposition fee.

When you decide upon a shorter lease, you get to drive a completely different vehicle when the lease ends. Or if the vehicle is within the kilometre limit detailed in the lease agreement and has no significant damage, you can simply return it to our dealership instead. Purchasing the vehicle at the end of the lease is a different option you might opt for! And it’s also true that with leasing, you can customize the vehicle with only dealer-approved accessories.

For Further Details on VW Financing and Leasing in Canada

We hope all that makes sense to you, but should you have any further questions about VW financing and leasing in Canada, or are interested in securing a plan for VW Certified Pre-Owned vehicle financing rates, we encourage you to contact us at Volkswagen Chatham.