Volkswagen Leases

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What is Car Leasing?

Have you ever wondered about leasing a car? But you don't know too much about it? Well, let's see if we can help you with that.
Car leasing is like renting a vehicle long term. You are locked into a deal for a contracted number of months and a monthly payment.
Consumers usually sign a closed-end lease: It is the most common form of leasing. It sets firm terms, allowing the lessee to walk away at the end of the lease. All elements like the length of the lease, monthly payments, and the mileage cap are established in the leasing contract. As long as the terms get met, the lessee can just drop off the car at the end of the lease. The lessee also has an option to buy the vehicle at a predetermined value.
But there is also an open-end lease: This is a bigger gamble for those looking for a lease, who assumes more of the risk. The leasing company still sets a residual value and the monthly payments. Luckily, open-ended leases have more mileage options than the closed-ended lease. The lessee taking the hit if the residual value at the end of the lease is less than the vehicle's actual market value. The lessee must pay the difference.

What Do You Need to Know Before Leasing?

Arguably the biggest concern is when considering how many miles you drive yearly. The USDofT stated that most Americans drive an average of 12,724 miles in 2020.
Depending on the lease, agreements range from 10,000 miles per year to as many as 15,000 miles per year. Whatever the limit may be, the leasing company will penalize you for every mile above the limit.
Pros
Leasing can help ease the financial burden a little. Usually involves a smaller down payment compared to buying. 

You can actually get a new car every few years. When a lease is up, you can return it and get a new car. You'll also get the latest advances in car technology every few years. 

You can also get a warranty that lasts at least three years. So if you decide to do a three-year lease, the repairs are most likely covered. You may eliminate some significant, unknown expenses. 

You don't have to worry about resale since you'll be returning the car. Unless you choose to buy it. You only have to worry about paying any end-of-lease fees, including any abnormal wear or additional mileage. 

If you are using the car for business purposes, it may afford you more tax deductions than a loan. The IRS will allow you to deduct both the depreciation and the financing costs that are part of each monthly payment.
Cons
You don't actually own the car. The restrictions of a lease can also affect how much and how far you wish to drive. If you like to modify your car then you may have additional fees and even more at the end due to the need to remove any changes. 

Because you don't own the car, you don't have any control over it. You can't sell the car or even trade it to reduce the cost of your next vehicle. 

As it has been mentioned, you will have fees. Like excess mileage, any modifications, and excess wear and tear. 

You will have to pay an acquisition fee (also called a lease initiation fee). You might have to pay a fee to cover what the dealer pays to clean and sell the car. 
Plus, if you didn't get the gap insurance, you may also owe costs related to accidents you might have had that the insurance doesn't cover.