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2013 and earlier Volkswagen GTI Lease Questions

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  • jpierce26jpierce26 Posts: 60
    Hi Car_man,

    I hope you are well. Glad to see you are still around... You helped me a couple years ago with my VW. I think it is time for me to ask for some more help.

    I am looking at the 2006 VW GTI with option #2 and NAV. Looks like the MSRP is about $27,580 (Base, Dest, Package #2, NAV)

    The dealer I have been working with is giving me $300 over invoice off the bat, didn't need to negotiate anything. This makes the car cost me $25,646.

    What would the MF and residual be for a 3 year lease. I tried to use some of your other numbers above, but not sure if they are correct for this month. I have .57 and .00215 which makes a $390.17 payment.

    Can I assume those numbers or are there updated numbers?

    Thanks,

    JP
  • racerx00racerx00 Posts: 1
    Hello Car_Man, you are a hero to car buyers everywhere!

    Well me anyways..

    This is the deal my dealer is giving me on an '06 GTI MK V w/ Package 2 and no additional goodies:

    MSRP: 25,780
    Price: $25,100
    Money down: $1250 (+tax and DMV)
    Term: 36 Month/12k a year
    Money: 0.00215
    Residual: 54%
    Monthly Payments: $339

    How am I doin here? He seems to be pretty confident I wouldn't be able to get better numbers elsewhere. Thanks Car_Man! :D
  • CarMan@EdmundsCarMan@Edmunds Posts: 38,515
    Hi rowflyrs. If you were to lease a 2006 Volkswagen GTI 1.8T through VW Credit right now for 36 months with 10,000 miles per year, its buy rate lease money factor and residual value should be .00140 and 55%, respectively. Neither of these items are negotiable, but make sure that the dealer you are working with does not mark your car's money factor up to add additional hidden back-end profit to your deal. I would be happy to calculate what this car's lease payment should be for you, but in order for me to do so I need you to provide me with its full MSRP (with the destination charge added in). Let me know and I'll do some calculations.

    Car_man
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  • CarMan@EdmundsCarMan@Edmunds Posts: 38,515
    Welcome back jpierce26. $300 over invoice is a great price for this car. If you were to lease a 2006 Volkswagen GTI 1.8T through VW Credit right now for 36 months with 15,000 miles per year, its buy rate lease money factor and residual value should be .00140 and 52%, respectively.

    Car_man
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  • CarMan@EdmundsCarMan@Edmunds Posts: 38,515
    Thanks racerx00 :blush: . You aren't getting much of a discount on this car. Have you tried shopping around a little to see if any other dealers in your area are willing to give you a better deal? I would if I was in your shoes. Also, this car's June money factor is much lower than the one that you were quoted for May. If you were to lease a 2006 Volkswagen GTI 1.8T through VW Credit right now for 36 months with 12,000 miles per year, its buy rate lease money factor and residual value should be .00140 and 54%, respectively.

    Car_man
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  • timdaogtimdaog Posts: 3
    This is what the dealer gave me today:

    Car: 2006 GTI 2.0L w/ pkg 2, 18" wheels, candy white, transaction to be in linden, new jersey
    Price: $26,534
    Lease: 36 month, 15k miles
    Down Payment: $7500 (trade-in of 2001 GTI VR6 w/ 76k miles
    good to fair condition)
    Monthly Payment: $288

    Using the lease calculator I estimated the money factor and residual value to be 0.003 and 54% respectively.

    Is this a good deal? Any more info needed please let me know. Thanks.

    Tim
  • vwvw1vwvw1 Posts: 18
    I'm interested in leasing a 2006 Golf and would like to know the MF and Residual for 3yr/12k, 3yr/10k and 3yr/15k. Since it's the older body style anyone know what kind of pricing I can expect? Are there any rebates/incentive? The MSRP is $20,600 and invoice is $19,200.

    Thanks in advance!!
  • jperedojperedo Posts: 2
    Hello!
    Would you happen to know the money factors for the individual VW credit tiers?
    Also, what combination of credit score and income is required for each?
  • CarMan@EdmundsCarMan@Edmunds Posts: 38,515
    Hi Tim. You definitely should not make such a large down payment when leasing. If your leased GTI (sweet car by the way) is totaled in an accident or stolen and never recovered, your down payment essentially disappears. You can still trade in your current GTI if you want the convenience that doing so provides. Just have the dealer that you are working with cut you a check for it rather than using the proceeds as a capitalized cost reduction for your lease.

    I would be happy to give you my opinion of this deal, but it would be a big help if you would provide me with this car's full MSRP first. This number will show me how much of a discount you are being given on it and will enable me to use VW Credit's actual lease program to estimate what your monthly payment should be.

    Speaking of VW Credit's lease program, if you were to lease an '06 GTI 2.0L through it right now for 36 months with 15,000 miles per year, its buy rate lease money factor and residual value should be .00198 and 54%. Make sure that you aren't being charged a money factor that is any higher than this.

    Car_man
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  • CarMan@EdmundsCarMan@Edmunds Posts: 38,515
    Hello vwvw1. If you were to lease a 2006 Volkswagen Golf GLS 2.0L through VW Credit right now for 36 months with 15,000 miles per year, its buy rate lease money factor and residual value should be .00077 and 53%, respectively. This car's 12,000 miles per year residual value would be 2% higher and its 10,000 mile per year residual would be 3% higher (than the 15K residual). I don't believe that Volkswagen is providing any cash incentives on this car right now.

    Car_man
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  • CarMan@EdmundsCarMan@Edmunds Posts: 38,515
    Hello jperedo. Volkswagen Credit's money factors vary depending upon the exact model that you want, how long you lease it for, and how many miles per year you are allowed to drive. If you provide me with this info I should be able to give you an idea of what its lease program is currently like for the model that you are considering.

    Car_man
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  • timdaogtimdaog Posts: 3
    Thanks Car_man for getting back to me. Unfortunately I could not control my urges and bit the bullet before your reply. I prob got a bad deal but I suppose u live and learn. Anyhow, I ended up putting down the trade-in as a capitalized cost ($7500). The agreed upon value was $25,810.15, which I am assuming is the MSRP. My monthly payments are $229.77 for 24 months and 15k miles a year.

    Although I already went through the deal, your input would greatly help for future purchases. Thanks.

    Tim
  • jjretjjret Posts: 2
    I would love your help.

    I am looking at a 2006 Passat 2.0T. Package #1 and Cold Weather Pack. I am looking to lease, 36 m, 15 k p/y.

    Thanks
  • CarMan@EdmundsCarMan@Edmunds Posts: 38,515
    No problem, Tim. If you paid full MSRP for your car you didn't get a very good deal. There's no need to let the fact that the dealer you leased from made a couple extra hundred dollars on your deal ruin the wonderful experience of getting a new vehicle, especially one that is as awesome as the new GTI. You know for next time that it is important to negotiate the selling prices of leased vehicles. Hit the road with your Fast (I want one of those things :) ) and enjoy.

    Car_man
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  • timdaogtimdaog Posts: 3
    Thanks Car_man. I think it was a little under MSRP. At the time of signing he jacked the price up a few hundred. Kinda under-handed but looking at the big pic, the car is phenomenal...great to drive and earns many compliments :D

    Next time I will be more aware when negotiating but for now I'm just going to enjoy my new purchase...

    Tim
  • hpoohhhpoohh Posts: 35
    Hi Car_man,

    First of all, i would like to appreicate your help on my last 2 leases (05 MBZ C230K and 06 Toyota Sienna). My best friend is interested in the VW 06 GTI or 06 Rabbit. Could you please provide the following info?

    1. 06 GTI, money factor and residual for 36months 12k/15k
    2. 06 Rabbit, money factor and residual for 36months 12k/15k
    We are located in S.California just in case there is any special promotion going on.

    I checked VW's site and seems like both cars are on promotion.

    I will do my own calculation once you help me w/ the info requested. I think the Bank Fee is $525, right?

    Last question, please advise if they have multiple security deposit program to lower down money factor.

    Thank you again and keep up the good work.
  • jperedojperedo Posts: 2
    Hi Car_man

    The 2.0 GTI is what I was looking at as well. Doesn't VW have different credit tiers with different money factors based on one's FICO and income?
  • storrnycstorrnyc Posts: 28
    Hello Mr car_man and all,

    Please treat me with kid gloves as i try to understand the world of leasing.

    The setting....My girlfriend currently has a 2003 jetta on a 48 month drivers option lease with only 5 monthly payments to go. This particular car has just less than 20K on the clock and has probably about $500 of bodywork that needs to be repaired(smashed side mirror and a couple of dents etc). She is paying $235 and the car has a buyout price of approx 10.6K.

    The Options....We test drove both the GTI and the Rabbit. We were quoted monthly lease prices on both but personally i had no idea about the methodology of calculating these prices. The GTI came to about 475 for automatic with package 2 at approx 28K MSRP and the Rabbit we were quoted 270 a month for a 4 door with sunroof which came to approx 19.7 MSRP.

    The workings....I believe that im understanding the methodology to calculate the lease price but the bit im finding difficult to understand is on what costs are upfront Vs what should be in the total capitalized cost. I think sales tax is the one that i seem to be getting conflicting advice from various websites and dealers. If and when i strike a deal in nyc or ny do i pay the total cost of the cars sales tax upfront or is it rolled into the cpaitalized cost? What about taxes titles etc?

    When i do return the showroom ill most certainly be negotiating this cap cost down to whatever i can get but would also appreciate if you knew the current money factor and residual value on these two models...btw does the jetta gli have a better deal than these two right now? We are looking to have a deal fo either 24m/10K or 36m/10K.

    Many Thanks for all your helping on this newbie question..
  • graff48graff48 Posts: 3
    Car_man - my wife and I traded our leased 2003 GTI over the weekend, 4 months before the lease was over. The dealer gave us a trade-in value of $500 less than our purchase price quote from VCI. I read in our VW lease contract that the purchase price is only good for the leasee. Is it possible that VCI will charge the dealer more money than our stated purchased price? I should also note that we were 10,000 under our mileage allowance. The dealer made us sign a document stating that we would be responsible for any difference in price, but implied that it was only to cover cases where there were any outstanding late fees or miscalculated interest charges. Thanks.
  • CarMan@EdmundsCarMan@Edmunds Posts: 38,515
    No problem, Tim. You certainly picked an outstanding car. If I didn't need to have a larger vehicle for my family right now I absolutely would consider getting a GTI.

    Car_man
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  • CarMan@EdmundsCarMan@Edmunds Posts: 38,515
    You're welcome, hpoohh. If your friend leases a 2006 Volkswagen GTI 1.8T through VW Credit right now for 36 months with 15,000 miles per year, its buy rate lease money factor and residual value should be .00103 and 51%, respectively. The residual value for an otherwise identical lease with only 12,000 miles per year would be 2% higher. If your friend leases a 2006 Rabbit 4-Door model through VW Credit for 36 months with 15,000 miles per year, its buy rate lease money factor and residual value should be .00319 and 54%. Again, the 12k residual is 2% higher. VW Credit;s lease acquisition fee is currently $575.

    I know that VW Credit provides a money factor reduction for consumers who pay for their entire leases in advance, but I am not sure if it has a multiple security deposit program.

    Car_man
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  • CarMan@EdmundsCarMan@Edmunds Posts: 38,515
    Hey jperedo. You definitely need to have decent credit to lease through Volkswagen Credit, but if I am not mistaken it uses the pass/fail system of approving consumers for leases like BMW Financial Services does rather than the tiered money factor approach that Honda Finance uses.

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  • CarMan@EdmundsCarMan@Edmunds Posts: 38,515
    Hi storrnyc. At lease signing, VW Credit consumers are required to pay their vehicle's first month's payment, a security deposit that is equivalent to their payment rounded up to the nearest $25 increment, a $575 acquisition fee, and any required state taxes or fees. Consumers can also pay a capitalized cost reduction, aka down payment, at lease signing, but I always advise against doing so. The reason why I discourage making down payments on leases is if one's leased vehicle is totaled in an accident or stolen and never recovered, their down payment essentially disappears.

    Different states use different methods for calculating sales tax on leased vehicles. I am not personally familiar with how sales tax is calculated on leased vehicles in New York, but you may be able to find out how it is done by visiting one of the following sites: New York State Department of Motor Vehicles Internet Office or New York State Department of Taxation and Finance.

    Let's take a look at these cars' current lease programs. If you were to lease a 2006 Volkswagen GTI 1.8T through VW Credit right now for 24 months with 10,000 miles per year, its buy rate lease money factor and residual value should be .00103 and 62%. The numbers for an otherwise identical 36 month lease should be .00103 and 54%. If you were to lease a 2006 Volkswagen Rabbit 4-Door through VW Credit right now for 24 months with 10,000 miles per year, its buy rate lease money factor and residual value should be .00319 and 64%. The numbers for an otherwise identical 36 month lease should be .00319 and 57%. Lastly, the 24 and 36 month, 10k numbers for the '06 Jetta GLI should be .00086 / 64% and .00143 / 54%.

    Let me know if you have any other questions.

    Car_man
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  • storrnycstorrnyc Posts: 28
    Hi Car-man

    thanks for all your help on the taxes and upfront costs.

    apologies for a further request but i think i may be in need of 12K per year.

    Could you tell me the money and residual for the follwing:
    GTI 2.0L 10K/12K 24/36
    rabbit 12K 24/36
    GLI 12K 24/36.

    Many many thanks you are a star.
  • techchotechcho Posts: 1
    Sir, any help would be greatly appreciated.

    I am looking to buy a newly released '07 model VW GTI.
    In Scottsdale, Arizona they have recieved a couple in their dealerships, and I got dealer offer for a '07 that is
    expected with their next shipment. (within a week.)
    exactly the specs I want. This is the first offer
    he gave me and said he couldn't go lower.
    Should I still try and go lower.. if so how much do you think.

    2007 Volkswagen GTI, Auto(DSG), United Grey, no packages, 18" wheel upgrade.
    The offer from the dealer was that I can put a deposit on
    the car so that no dealer add-ons happen once the car arrives.
    He offered me $800 above invoice, which sounds like a good deal for a newly released '07, but the out-the-door price seems high.

    Invoice price: $22,707
    MSRP: $24,555
    -----------------------
    Invoice price: $22,707
    Mark-up: $800
    Phoenix dealer advertising fees: $200
    interest reserve???: $142
    port prep: $25
    ----------
    total before tax(8.0%?): $23,874

    + tax + plates + doc fee $26,600 OTD.

    I am new to Arizona and don't know what the
    plates cost as well as the doc fee.
    I already have a AZ plate I can transfer from my
    old car. Does that mean I don't have to pay the plate fees??

    I read in many places that buyers of the GTI in
    arizona paid less than this for their '06's
    Is this a decent deal considering the car is just
    arriving, or should it not matter since it is not
    a redesign year for the GTI??

    Thanks for your time!
    DC from Arizona.
  • chris62chris62 Posts: 1
    Having trouble figuring the MF on VW's current Rabbit lease promotion. I'm trying to negotiate a similar lease on a Rabbit with the addition of a sunroof and 15k instead of 12k. The MF quoted by the dealer is .00375 which seems high. I'm prepared to go down to 12k to return to a more similar lease to the promotion, but I need to know exactly to what I'm returning.

    What is the MF of the current VW Rabbit promotion (MSRP 15620, 36 mo., $1250 down, $226/mo.)?
    With the Rabbit's invoice price within $720 of the MRSP, is much negotiation down reasonable?

    Much thanks,
    Chris
  • Just got back from Corona VW in CA.
    I was offered $3,000 down and $311 monthly (tax included) for a base model 2006 GTI.
    Well, it actually does have the 18" wheels.
    Was this a good deal?
  • CarMan@EdmundsCarMan@Edmunds Posts: 38,515
    No problem, storrnyc. Here's the information that you're looking for. Volkswagen Credit's current buy rate lease money factor and residual value for a 24 month lease of a 2006 GTI 2.0L with 12,000 miles per year are .00180 and 62%, respectively. The numbers for an otherwise identical 36 month lease should be .00180 and 55%. VW Credit's 24 month / 12k money factor and residual for the 2006 Rabbit 4-Door are .00319 and 63%. Its 36 month / 12k numbers are .00319 and 56%. Lastly, VW Credit's 24 month / 12k numbers for the '06 Jetta GLI are .00086 / 63%. Its 36 month / 12k numbers are .00143 / 53%. If you were to lease any of the aforementioned vehicles with only 10,000 miles per year their residual value would be 1% higher.

    Car_man
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  • CarMan@EdmundsCarMan@Edmunds Posts: 38,515
    Hi DC. Volkswagen is not currently providing any lease support on the 2006 GTI. If I was in the market for one I personally would either lease a 2006 model or wait until Volkswagen inevitably introduces lease support on the 2007 model. Having said this, $800 over dealer invoice is a reasonable price for this car. This doesn't look like a true $800 over dealer invoice though because the dealer is trying to pass on a couple of fees to you. It's more like $1,142 over invoice which is only so-so.

    I am not familiar with Arizona's laws on the transfer of license plates, but you may be able to find out more information on this subject by visiting the following site: Arizona Motor Vehicle Division.

    Car_man
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  • CarMan@EdmundsCarMan@Edmunds Posts: 38,515
    Greetings Chris. Volkswagen Credit's current buy rate lease money factor and residual value for a 36 month lease of a 2006 Rabbit 4-Door with 15,000 miles per year are .00319 and 54%, respectively. Since Volkswagen is really not providing much in the way of lease support on this car, its money factor is still high. It's just not quite as high as the one that you were quoted. You may be able to get an idea of how much you will have to pay for this car right now by visiting the following discussion: "Volkswagen Rabbit: Prices Paid and Buying Experiences".

    Car_man
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