There are a lot of decisions that need to be made before taking delivery of a new Volvo. While some of the decisions are fun and exciting, others are more practical and have financial consequences, such as whether to use leasing or buying. Both options have pros and cons.

Leasing Option

Although the length of the agreement is substantially longer, leasing a Volvo is very similar to renting a vehicle. You pay for the usage of the vehicle, rather than for ownership. The amount that you pay each month is based on a depreciation value. After selecting a Volvo to lease, you’re informed of the down payment needed, if any, the monthly lease payment, and the terms of the lease agreement. Typically, a Volvo lease is a closed-end agreement, and the residual value of the vehicle is established before taking delivery. Once the terms of your lease agreement have ended, you return the vehicle to an authorized dealer throughout Fredericksburg and simply walk away without any further financial obligation.


  • Shorter Financial Obligation
  • Streamlined Purchasing Process
  • Lower Cost of Maintenance


  • Lack of Ownership
  • Higher Insurance Coverage Required
  • No Equity in Vehicle

Buying Option

Traditional car financing is when a down payment is made, along with a trade, and payments are set based on the annual percentage rate of the loan and purchase price. The lender holds a lien on the title until the final payment is made or acceptable pay off has occurred, such as using the vehicle as a trade. Typically, the loan is paid in the same monthly installment payments; however, owners can choose to pay more to reduce the balance sooner. This is one of the major advantages over choosing a lease and provides the flexibility that many Volvo buyers want.


  • Ownership after Financing
  • Equity in Vehicle
  • Financing Incentives


  • Longer Financing Terms
  • Higher Monthly Payment
  • Negotiation of Purchase Price

Learn More About Financing with Volvo Cars Fredericksburg

Are you interested in learning more? Call us, or stop by Volvo Cars Fredericksburg showroom for more information and take a test drive of any Volvo in stock.

Categories: Finance, New Inventory