Why Financing Your Volkswagen Is a Good Option
Here at Low Country Volkswagen, we’ve made the financing process easy and efficient. Our finance specialists are here to help each step of the way, offering a variety of options to fit every budget. Read on to learn more!
What is Car Financing and How Does It Work?
We understand that a vehicle is a major investment, so it is crucial that you leave the lot with a payment plan you’re comfortable with. When you finance a car, you borrow money from a bank, credit union, or lender – and then pay it back with interest over a specified time period.
Each monthly payment is broken into two parts: the principal payment (the portion that goes to paying off the loan) and the interest payment. It is calculated based on the loan amount, length of the loan term, and annual percentage rate. Interest rates, however, are determined by your credit score, specific vehicle, and more.
Once you pay back the loan in full, the lender will send a lien release document to your state’s transportation agency before transferring the title to you.
Benefits of Leasing
Drivers who enjoy trading up to a new model every few years often prefer leasing over buying. Here are some perks to leasing a vehicle at Low Country Volkswagen:
Higher-end vehicles: Leasing a more upscale model is more affordable than buying one. Plus, a two-to three-year lease allows you to upgrade to the newest model with the latest tech, infotainment, and safety features every few years.
Monetary perks: Lower payments, vehicle warranties and free routine maintenance are also great advantages to leasing a vehicle.
Depreciation protection: To protect your bank account against unexpected depreciation, leasing is a wise financial move. If the leased vehicle maintains its value, you can typically buy it at an affordable price at the end of the lease term.
Option to buy at the end of the leasing period: If you fall in love with your leased set of wheels, you can buy it at the end of the lease term! The price is generally calculated by adding the car’s residual value to the processing fees required by the manufacturer.
Ability to transfer your lease to a new driver: If you decide your leased vehicle doesn’t fit your lifestyle, you may be able to transfer the lease to a new driver for the remainder of its term, before you sign the lease. Keep in mind that your financing company may charge you a lease transfer fee, which often amounts to several hundred dollars.
Benefits of Buying
If you’d prefer to make a longer term investment, buying is likely best. This option gives you total control of the vehicle, as well as the freedom to trade or sell whenever you choose. In addition to building equity, you’ll enjoy these benefits:
No mileage limits: No matter how many miles you rack up, you won’t need to worry about extra fees.
No wear-and-tear charges: You also won’t need to stress about adding normal wear and tear to the vehicle – something that many dealers charge for on leased vehicles.
Ability to sell or trade: Because you own the vehicle, you can sell it or trade it whenever you choose. Its market value will be determined by its current mileage and condition.
Freedom to customize: Again, because the car is yours, you can add any accessories you choose to ensure your new ride matches your unique style.
Want to Learn More About Financing Your Volkswagen? Contact Your Local VW Dealer in Mount Pleasant SC!
Our on-site Finance Center is here to make the financing process simple – whether you choose to lease or buy! Our financing specialists are ready to help, so contact us today to learn more!