your leasing fears dispelled brantford volkswagen
Time to clear up the "Grey Areas" that often go sour with Leasing .... In Clear English!!
Is there a penalty to get out early?
NO, Volkswagen does not charge a penalty to get out of your lease early, however, as with any loan or finance contract, or even a mortgage on your home, you are still bound to the remaining balance owing at any point during the contract, therefore, an evaluation is done on the car, a current total payout is requested from VW Credit (which is your remaining payments plus the end value or residual value). If there is a negative difference between the payout amount & the current market value of the car, you may have a difference amount to pay if you want to drop it off early & walk away. If you are leasing or buying another car, you can opt add the remaining balance owing into your new lease or loan (oac), if you wish. The same applies for a positive difference, if the market value on the car is higher than your current payout, the difference is yours to keep or put towards your next car.
What happens if I go over my km’s?
At the time of signing your lease, you will choose how many total km's you want included in your lease contract. At that same time you will be made aware of how much each km will cost you at the end, & it will be printed on all of your documents to keep. (No surprises!!) They range from 10 cents to 15 cents on our cars at the end if they are an overage, depending on if you initially select an extra low km lease, & on our Touareg they range from 20 cents to 35 cents. ***when you include extra km’s into your lease over 25,000km per year, you get them for only 8 cents, this is the way to go if you think you may need a few extra! Keep in mind, weather you build in extra km's into your lease, or pay for them at the end, it still adjusts your end buyout OR your monthly payments, therefore it's actually relative (like the scale image on the About Leasing page) either way you are only paying for the usage of the car you had.
Does it make sense to put money down to reduce my payments?
YES, if your intention is to reduce your monthly payment amount. It's important to note that your down payment goes towards the “leased amount", therefore, your usage only, and the”end value” remains the same. It's a common misconception that you "lose" your down payment because it goes to the end value!
Can I still personalize my car?
YES, within reason; It is always best to confirm with your dealership before, just to make sure. However, as a rule of thumb if anything you do can be removed without causing damage to the vehicle, in order to return it. This is a good guideline to follow.
If I am keeping my car at the end, do km’s matter?
NO, if you are buying out and keeping the car, & not returning it, you will simply pay your “end value”, HST, & license fees. VW Credit is only concerned with condition or km’s if they are getting the car back.
Will I get a get a "surprise" bill at the end of my lease?
NO, Volkswagen has a very transparent process, around 75 days before the end of the lease, you will be prompted to arrange a NO CHARGE inspection, at your location convenience, where you will receive a full report of the condition of your car, including any possible charges you can expect for excess damage, km’s etc. Now, if you do this inspection in good time (not at the last minute) you will have the opportunity to have any damage repaired in advance, possibly at a reduced cost, & an invoice for the repair or a statement from your dealership will erase it from your inspection invoice, so you will not be charged.
Do I have to return my car to the dealership where I leased it from?
NO you can return your car to any VW Dealer in Canada.