Leasing vs. Financing

Should I Lease or Finance?

Deciding whether to finance or lease a vehicle can be a difficult decision. Financing allows you to build equity over time while leasing offers the ability to drive a new car without ownership. This guide explores the differences between financing and leasing, as well as the benefits and drawbacks of each option to help you make an informed decision.

Leasing vs. Financing A Vehicle


With the rapid change in automotive safety, technology, fuel economy, and performance features, the popularity of leasing continues to rise! Leasing a Volkswagen from Volkswagen Waterloo allows you to drive your brand-new VW for a set period of time. In exchange for a low monthly payment, you are given a predetermined km allowance over the term of your lease. At the end of the lease, you can choose a new Volkswagen, purchase your current Volkswagen for a predetermined price, or return it to your local dealer.

Frequently Asked Questions

What if I go over the allowed Kilometers?

Work with your sales consultant to find the best solution for the average kms you anticipate driving over the term of the lease. If your situation changes and you end up driving more than your chosen distance, Volkswagen has a fair predetermined cost for any excess kms.

What if my Volkswagen has damage at the end of the lease?

Lease end damages outside of normal wear and tear are the responsibility of the lessee. Volkswagen utilizes a third-party inspection company to ensure the results of the lease end inspection are fair and unbiased. Volkswagen also offers a Lease Excess Wear Waiver which can reduce the risk of lease end charges. If you schedule the inspection prior to the end of your lease, you will receive a full report with the option of repairing the noted items or opting to be billed at the end of your lease.

What happens if I want to keep my leased VW?

One of the many benefits of leasing is the choices you have upon the expiration of your lease. Volkswagen allows you to exercise a purchase option on the vehicle at a predetermined residual value. This allows you to continue to enjoy the Volkswagen you know and love.

Pros of Leasing

  • Leasing enables you to drive a new VW every 1-5 years
  • A lease typically offers you a shorter term and lower payment when compared to financing
  • With leasing, your VW is covered under the full comprehensive warranty
  • In the event of an accident, you are not responsible for the increased depreciation
  • At lease end, there are multiple choices you can make
  • Approved Volkswagen accessories can be added into the residual value calculation to reduce out-of-pocket expenses

Pros of Financing

  • Financing is ideal for high mileage drivers and owners who wish to keep their vehicle long term
  • Volkswagen Waterloo’s financing options are open loans and can enable you to pay down or pay off the loan at any time without penalty
  • With financing, you own the vehicle, so you are free to keep it as long as you wish and drive as many kms as you’d like
  • With financing, your vehicle can be modified and personalized


With all-time low interest rates, financing a Volkswagen from Volkswagen Waterloo has become more convenient than ever. We offer many different finance options to ensure we obtain the lowest interest rate possible for our valued clients. With our monthly, bi-weekly and weekly payment options paired with our flexible finance terms, we are confident that we can find a purchase option to suit every budget.

Frequently Asked Questions

What if my vehicle requires repairs outside of the warranty period?

For a low monthly payment, Volkswagen’s Mechanical Breakdown Protection protects your vehicle against unexpected covered breakdowns for up to 10 years or 200,000 kms.

What if my vehicle has cosmetic damages?

With Volkswagen’s Appearance Protection, you can have little imperfections like dents, scratches, and cracked or chipped windshields repaired without additional unexpected costs.

What if I become injured or out of work during my finance period?

Volkswagen’s Loan Protection is a Life, Critical Illness, Loss of Employment and Disability program designed to help you and your loved ones meet your financial obligations during unexpected life events..

What happens if my vehicle is involved in a partial or total loss during my finance period?

To help in the event of total or partial loss of your vehicle, Volkswagen’s Vehicle Loss Privilege Program gives you a host of options for different loss events that can occur.

Apply for Financing Today