All About Leasing (A Volkswagen in Canada)
As a sales person in the automotive industry, I ask every single one of my clients how they intend to purchase their new vehicle whether it be leasing, financing, or cash purchase. I am personally a big fan of a lease purchase option. It provides my clients with the opportunity to always have a new vehicle with the latest and greatest features, low monthly payments, and flexibility to switch things up when your lifestyle needs it.
Leasing gives you the most affordable flexibility when looking to purchase a vehicle for personal or business use. Monthly payments are calculated based on current interest rates, selling price of the vehicle, and calculated future depreciation. The payments generally work out to lower payments than financing for the same term.
During your lease term, you are responsible for all regularly scheduled maintenance of your vehicle plus wear & tear items. The finance office will often provide you with packages that can be built into your lease that will allow you to clean, repair, or replace any damages that your vehicle may incur while you are driving it. These packages can allow you to make up to $15,000 worth of claims that include such items as seat cleaning, windshield replacement, tire repair, rock chips, and more. You will be able to maintain the new condition of your vehicle with such a package to minimize end of lease costs.
At the end of your lease you are provided with several options. First, you may (hopefully!) choose to lease a new Volkswagen of your choosing that will have the latest safety & technology features. Second, you could choose to buy out your lease and pay off the remaining balance of your vehicle which is often between 40–45% of the original market suggested retail price. You can do this by either paying the amount in full or re-financing it at current interest rates. Third, if you so choose, you will be able to hand back the keys at the end of your lease and change manufactures if you decide that Volkswagen is not the brand for you. At this time you would be required to have the leased vehicle inspected by a third party company. They would let you know if anything needs to be repaired or replaced, and will often provide a quote for you at well. No matter which option you choose, you may visit any Volkswagen dealership of your choosing as long as it is in Canada.
All of this information is directly from my knowledge and experience in the automotive industry. This article is intended to educate and inspire drivers to explore all of their options when seeking to purchase a new vehicle. I welcome all questions and comments (as long as they are respectful)!