Leasing VS Buying

The Changing Landscape

A number of converging trends have changed the leasing landscape for the average consumer. For decades now, a large proportion of luxury cars have been leased. But that has changed, with more compact cars, mainstream sedans, and small SUVs entering the new-car lease market, as well. Attractive finance rates have made some leases pretty good deals.

Automakers benefit by leasing a big portion of a car's production. Leases help keep used-car supplies steady, which in turn boosts resale values. A high resale value means a vehicle is slower to depreciate, which translates into cheaper leases for that model. That benefits consumers.

The low interest rates that have prevailed elsewhere for the past few years have carried over into lease contracts, which also helps moderate their cost. Interest rates are a critical part of the economics of leasing, because at the end of the day a lease is just another way to finance a car.

Another tactic for boosting a car's resale value is reflected in the low mileage allowance in some new leases: 10,000 miles per year instead of the customary 12,000 to 15,000 miles. That may be fine for people who don't drive much, but the average driver will exceed that figure each year.

We also see a growing number of leases with terms of less than 36 months, which is a mixed blessing. Sure, it looks good to someone who doesn't want to be locked into a long contract. But a car's first two years usually make up the steepest part of the depreciation curve, making for an expensive lease period.

However, it's becoming common in the car-loan market for people to stretch out the loan for seven or eight years, simply to keep the monthly payment under control. Some of those people may be better off leasing.

How Loans and Leases Differ

Below are some of the major differences between buying and leasing.  


OwnershipYou 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 but must return it at the end of the lease unless you decide to buy it.

Monthly PaymentsLoan payments are usually higher than lease payments because you're paying off the entire purchase price of the vehicle, plus interest and other finance charges, taxes, and feesLease payments are almost always lower than loan payments because you're paying only for the vehicle's depreciation during the lease term, plus interest charges (called rent charges), taxes, and fees.

Early TerminationYou can sell or trade in your vehicle at any time. If necessary, money from the sale can be used to pay off any loan balance.If you end the lease early, charges can be as costly as sticking with the contract. On occasion a dealer may buy the car from the leasing company as a trade-in, letting you off the hook.

Vehicle ReturnYou'll have to deal with selling or trading in your car when you decide you want a different one. You return the vehicle at lease-end, pay any end-of-lease costs, and walk away.

Future ValueThe vehicle will depreciate, but its cash value is yours to use as you like.On the plus side, its future value doesn't affect you financially. On the negative side, you don't have any equity in the vehicle.
MileageYou're free to drive as many miles as you want. But keep in mind that higher mileage lowers the vehicle's trade-in or resale value.Most leases limit the number of miles you may drive, often 12,000 to 15,000 per year. (You can negotiate a higher mileage limit.) You'll have to pay charges for exceeding your limits.

Excessive Wear and TearYou don't have to worry about wear and tear, but it could lower the vehicle's trade-in or resale value.Most leases hold you responsible. You'll have to pay extra charges for exceeding what is considered normal wear and tear.

End of TermAt the end of the loan term, you have no further payments and you have built equity to help pay for your next vehicle.At the end of the lease (usually two to three years), you can finance the purchase of the car, or lease or buy another
CustomizingThe vehicle is yours to modify or customize as you like, although doing so may void your warranty.Because you must return the vehicle in salable condition, any modifications or custom parts you add have to be removed. If there is any residual damage, you'll have to pay to have it fixed or you'll need to file an insurance claim and pay a deductible.

New Volkswagen Sedans 

There are so many choices for you to pick from when you're shopping for a new sedan, hatchback or wagon so it can be hard to find the perfect one for you. You'll love how there's numerous options for everyone to pick from when you shop with the inventory of new Volkswagen sedans here in the Cincinnati, OH area. We have options for everyone from large to small, including the classic Jetta that offers great gas mileage, a smooth ride, and an infotainment system that you'll love. Plus, we have new options to pick from including the Arteon and Golf that offer energetic engines and premium interiors. 

If you're looking for SUV-like versatility and sedan-like driving dynamics, the Golf SportWagen brings you an upscale interior and all the cargo room you need. With up to 66.5 cubic feet of space when you fold the rear seats down and 30.4 cubic feet behind the rear set of seats. No matter what your needs are, we're sure that you'll find the perfect Volkswagen sedan, hatchback, or wagon for you in our inventory here in Florence KY.

  • Golf GTI - For drivers wanting a versatile hatchback with style and performance, be sure to check out the new VW Golf GTI. This model comes with 15-inch wheels, a panoramic sunroof, a six-speaker audio system, leatherette seats, and forward-collision warning with pedestrian detection.
  • Golf R - The Golf R adds style and innovation with features like a 2.0-liter turbocharged inline-four-cylinder engine that generates 315 horsepower and 310 lb-ft of torque. Plus, you get features like dual-zone climate control, a Harmon-Kardon premium audio system, 12-way-power seats, and a ten-inch infotainment screen.
  • Jetta - The new Jetta returns with cutting-edge features for Cincinnati, OH drivers like heated and cooled front seats, forward-collision warning with automatic emergency braking, panoramic moonroof, navigation, and VW's Digital Cockpit.
  • Jetta GLI - There is also the Jetta GLI with upgraded features including dual-zone climate control, adaptive-damping suspension, a DSG automatic transmission, and an eight-infotainment system with an upgraded Beat audio system.
  • Passat - Get the agility and performance you crave with the new VW Passat. This best-selling sedan returns with a recent redesign and available innovations like heated side mirrors, adaptive cruise control, remote start, rear cross-traffic alert, push-button start, and a premium Fender audio system.

New Volkswagen SUVs Near Cincinnati, OH

If you're looking for an SUV that packs features, performance, and something for everyone, you'll find it with the lineup of Volkswagen SUVs. From the Tiguan that brings you a compact SUV to the three-row Atlas, there's an SUV for everyone here in Kentucky. The Atlas brings you three-rows of comfortable seating, with enough room for even adults to fit in the rear row of seats. That's not something that many other competitors can say here in the Hebron KY area. 

If you're looking for something a little smaller, the Tiguan offers a compact option with two-rows of seating. With a good predicted reliability rating, plenty of cargo space, and a smooth ride, it's easy to see why so many drivers choose this SUV for their lives. Plus, with available all-wheel drive you can take your adventures further off the beaten path with the Tiguan. 

  • Arteon - The Volkswagen Arteon is VW's flagship sedan coming with impressive power and sophistication with a style that is sure to turn heads around Erlanger, KY. This all-new four-door arrives with features like Nappa leather seats, 4MOTION all-wheel drive, a sunroof, and an eight-inch infotainment system.
  • Atlas - If you're in the market for space and power, the new VW Atlas is a great choice. This full-size SUV holds up to eight passengers with features including an available six-cylinder engine, USB connectivity, an overhead-view camera system, Android Auto/Apple CarPlay compatibility, and rain-sensing wipers.
  • Tiguan - This compact crossover is the epitome of versatility with seating for five passengers and ample features to keep everyone entertained and comfortable. This SUV packs a standard 2.0-liter turbocharged inline-four-cylinder engine and available features such as navigation, a panoramic sunroof, a hands-free tailgate, and leather seats.

Financing Made Easy for Your New Volkswagen 

The last thing you want to have to deal with once you pick out your new Volkswagen car or SUV is wading your way though a confusing financing process. Once you've found the perfect Volkswagen for your life in the Erlanger KY area, our team can help you though the whole process and make sure that you get the right financing option for your needs. You can even get started from home and get pre-approved with our online financing application. 

Can't decide between buying or leasing? Our team can help you find the right option for your budget and lifestyle needs here in Kentucky. Feel free to come in and explore your options with us! 

Don't wait to come see us here in Florence KY to test drive any of our in-stock Volkswagen models. We're sure that you'll find the perfect one for you here in our showroom in Florence, so don't wait long to come see us here in person. Our team will help you through the whole process, so contact us today if you have any questions!

Visit Kerry Volkswagen Today!

Get the new Volkswagen of your dreams right here at Kerry Volkswagen. Our team of sales professionals will work to make sure you get the model you want with the customer support you deserve during your visit. Make your way to our dealership to check out our current inventory and take a test drive.