If you're getting ready to sign a new VW lease, you may notice that lease payments are a little higher than you expected. If you just leased a vehicle a few years ago, you may see a significant difference in current terms and wonder why that is the case.
There are a few reasons for this, and there's not much a dealership can do to address the underlying causes for higher lease payments. However, the experts here at Patrick Volkswagen can still help you take advantage of the latest lease offers and find a new VW car that you can afford!
Reasons for Higher Payments
Lease payments are currently being driven higher by two major factors. The first is the price of new vehicles. Due to supply chain issues caused mostly by the pandemic, some new vehicles are in short supply.
When there are fewer cars to go around and continued high demand for them, prices are going to rise. That higher base price is generally going to help drive monthly lease payments up.
Another factor is interest. When you make lease payments, you're not just paying the price of the vehicle. A portion of your monthly payment is going towards interest.
Most people realize that interest rates are going to be higher or lower based on their credit score, but your individual credit history isn't the only thing that can affect your interest rate. Recent government actions that have raised interest rates can also have an effect.
There hasn't been a massive bump in interest rates, but there's been enough of one to affect how much a lease and its monthly payments will cost you.
Lease Your New Volkswagen Car Today!
If you're ready to lease a new Volkswagen model, visit our VW dealership in Auburn, MA. We'll answer any questions that you have about leasing and our lineup of new VW cars and SUVs!