Car Lease FAQ in Union NJ

FAQ's about Leasing: What it means, how it works

The fact is, most people get a new car like a Volkswagen by getting a car loan, and that's a very good financial strategy. A car loan allows you to build personal cash value in the car you're buying. But another financing option is to lease a new Volkswagen at Tom's Volkswagen of Union in Union, NJ. While everyone has heard of leasing, not everyone understands exactly what it involves and how it works. Here are some basics we hope will be helpful.

What's the difference between buying and leasing?

At the Lease Center at Tom's Volkswagen of Union, we specialize in helping customers understand what leasing a Volkswagen is all about. One of the questions we hear often is about the difference between buying a new VW vs. simply leasing it. Buying means a lender is loaning you the money to buy the car and then you re-pay the loan with monthly payments. Leasing also requires monthly payments but it's more like renting a new VW. 

Benefits of getting a car with a lease

The key advantage of leasing a Volkswagen Tiguan for most people is that your monthly payments will be lower than what you'd pay buying the same vehicle with a car loan. In addition, the initial down payment - or "amount due at signing" - is less with a lease than with a loan. You might even find a leasing special with no money down.

At the end of, say, a Volkswagen Jetta lease - usually after 36 months - our Newark and Kenilworth, NJ customers simply return the vehicle, pay any lease-end charges, and you're done with your lease. During that 36-month lease period, your leased vehicle like a VW Atlas will be covered by your new vehicle warranty so you won't have to worry about big repair expenses during that time. 

Benefits of buying a car with a loan

To help illustrate the differences a little more, with a car loan, you're gradually creating cash value - or "equity" - in your VW with each monthly loan payment. Over time, you can create thousands of dollars in cash value with your name on it. That's real money you can use when you sell that car and buy your next car. With a lease, you're not building cash value and you won't ever own the car. That's why leasing is more like renting.

Who is leasing good for?

If you're feeling squeezed and don't have enough cash every month, leasing can give you lower monthly payments and free up more cash flow. If you like driving a brand-new VW Taos with the latest features and you also want lower monthly payments, leasing allows you to do that. If you like the idea of not having to sell your car at the end of the lease, that's how leasing works. You don't have to sell the car because you don't own it. 

What happens at lease-end when I return my leased VW?

The end of your lease is when our leasing customers from Edison or Elizabeth, NJ will return their leased VWs to us at Tom's Volkswagen of Union. That's when you'll pay for any excess damage or any excess miles on your leased VW ID.4 beyond what's allowed in the lease contract. At that point, you can just walk away from your lease and buy your next VW with a loan or sign up for another lease and drive home in another new VW.

Look for VW lease specials on our low payment lease vehicles

Check our "New VW Specials" under the "New" tab to find lease deals that can help you save on leasing a new Volkswagen. Contact us any time by phone or, better yet, in person to discuss the pros and cons of leasing vs. getting a loan to buy your next VW. We'll be happy to answer any questions and tell you about our low-payment vehicles available with a VW lease at Tom's Volkswagen of Union, just minutes from Springfield in Union, NJ.