We are looking to buy the 08 Jetta SE Auto (No other options although the dealers in this western PA area all seems to have the floor mat included). With the floor mat, Edmunds.com show MSRP/INVOICE/TMV to be $21,660 / $20513 / $21397. (Dest charge included)
However, the VW dealers in this area said the invoice is $20,920, $400 over Edmunds.com. Anyone know why?
The lowest price we got was $21,020. Seeing posts by tvfahlberg and sulltikk1, we are wondering if we should wait for a better price. We would appreciate any suggestion.
I got a quote from the internet department of a dealership here for a 2008 Jetta SE Automatic for 20,275 dollars. Is this crazy or not? This leadership is very professional and is located in the middle of the city. It has a great reputation, too.
Seems like a great deal. Watch out for "dealer fee" or "doc prep fee" which may make your great deal just an "OK" deal. Here in PA that amt is limited by law to $65 or so. I've seen dealers in FL charge upwards of $599 for "fees".
Bought my 08 Jetta SE Auto yesterday at invoice from Young VW in Easton PA. This is my second purchase there. Great treatment and better deals! Finance dept got me 4.9% for 72 months through VW Credit on the 08, I just had to ask for it! Got an outstanding price on my trade in, too. Thery gave me $500-$1000 MORE than every other dealer I went to.
PS- I agree with Dallas. Jetta SE is an incrediblecar, and a SCREAMING BARGAIN at $20-$21k
I've read (don't recall the source) that the delay is due to the 50 state emissions. VW won't release the CleanTDI until its emissions are certified in those last 5 states, and is having trouble doing so.
After learning about this latest delay, I decided to just go out and get another 2.5. The TDI/DSG is a far superior drivetrain, but the 2.5 / 6 sp auto isn't a bad compromise for thousands less.
I first looked on ebay for a used TDI. Folks are getting close to MSRP on used TDIs with 20,000 + miles. YIKES!!
If you're asking if they attach an ugly decal to the rear of their cars the answer is yes. I called my sales guy the morning of delivery and told him that I would not take delivery if there was any brandind on the body of the car.
A license plate frame is easily removed.... a label epoxied to the paint, not so much.
I have to say that the VW dealers I've dealt with in NJ and PA are so much nicer and more customer-focused than the hostile dealers I used when living in MA.
I'm glad they took the decal off for you (?). I have never seen those types of decals put on new cars in Washington state, so it was interesting to see those ugly decals on many cars on the road in the Lehigh Valley. Thanks for the heads up about Young - what a coincidence to see someone from the Lehigh Valley shopping (shopped) for a Jetta the same time I am! Congratulations!
Thanks sandpaper. I use Halterman's in Stroudsburg for service / oil changes because Young does not have service hours on Saturday, and I have been very pleased with the service dept at Haltermans.
The buying experience at Young was amazing. Very upfront with pricing... none of the "monthly payment" shopping I've experienced at other dealers who try to hide the cost of the car and trade in value in a monthly payment. There was no pressure either. On my first visit, they made an offer and I said I wated to shop around. One of the Youngs came over and without any pressure, offered to match any other deal I found, and was sincere and pleasant the whole time. Amazingly, theirs was the best deal anyway!
No pressure in the business office either. My credit uion was offering 5% for 72 months...they got me 4.9 for 72 thru VW Credit! They offered extended service and protection plans, and did not give me a hard time or make me feel guilty for declining these extras. I actually almost bought the Teflon paint protection, but didn't because it doesn't offer protection from fading (a MAJOR concern with the Salsa Red exterior).
Overall, Young exceeded my expectations for the second time in 16 months (bought my 06 Jetta there, too).
So I am interested in this new sign then drive event but haven't the foggiest idea about leasing. On VW.com for the jetta lease special is it a good deal? Also in a lease can I buy it at the end? If not when I give it back caould I get trade in value towards another car or is it just like thanks and hand the keys back in? I know people talk about money factors and residuals so I am also interested in knowing are they also good for this special on vw.com. If not is a lease something you can negotiate? Thank you all for your help.
jbeck1 - After plugging in your figures into Carbuyingtips.com's lease worksheet (www.carbuyingtips.com/lease.htm - scroll down for "lease worksheet"), I find that the combination of a trade-in with a lease seems to have confused you. The dealership was not charging you a 70% interest rate to finance the depreciation. Here goes:
A money factor of .00278 x 2400 = 6.672% interest. Also, based on your example, it seems that you paid 7% sales tax. You got $3500 for your trade-in, which is a capitalized cost reduction of $3745 (including the savings on tax via your trade-in allowance).
I assume that all fees (tag, license, registration, dealer fees, etc.) are included in your $21000 purchase price, so that would equal your "gross capitalized cost". If you leased a Jetta SE automatic with no options that would be a dealer invoice of $20,368 and $20,513 with Jetta mat kit (included in almost every car). The dealer invoice of $20,775 you stated includes some small "padding" for unnecessary dealer fees. However, in order to get $199 + tax using your numbers, your cap. cost including all fees needs to be $20,637 (an additional $363 rebate not mentioned in your example).
The lease is calculated based on two factors: 1) Depreciation = adjusted cap. cost - residual value and 2) Rent charge = (adjusted cap cost - residual value) * (money factor) * (lease term).
If you analyze the lease itself without including your trade-in, you would have been charged $298.48 + tax = $319.37 per month. I don't know where you got a depreciation figure of $5755 from. Your base depreciation is 40% of $21,000, which is $8400. Subtract from that $3500 for your trade-in and another $363 rebate to make the numbers work. Your net depreciation is actually $4537. ----------------------------------------------------------------------------- I'm not in your state (I'm in Florida), but I was offered yesterday from Gunther Volkswagen a 2008 Jetta SE (automatic transmission) with mat kit - MSRP: $21,660 and invoice of $20,513, $275 (+ tax) per month for 39 months / Cap Cost: $20,875 + tag title and registration of $167.60 / Money Factor: 0.00153 / Residual: 57% My residual is a little lower because I'm going for 15,000 miles a year. At 12,000 miles and 60% residual, I would be paying $259.90 (+ tax). All of my figures here include destination charge and other fees. ------------------------------------------------------------------------------- BTW: you state that you got $500 extra over blue book value (I assume that's $500 over kbb "trade-in" price) for your trade-in. If you sold your trade-in to a private party, you would have made even more on the trade-in that what the dealership paid you (even with their "$500 extra").
If you calculate your lease using my numbers (and with a $3500 trade-in and 60% residual for 12000 miles), you would be paying $164.80 + tax per month.
The dealer's true profit on this deal is invoice minus holdback. VW holdback is 2% of BASE MSRP = 2% of $20835 = $416.70. Invoice on 2008 Jetta SE automatic w/ no options is $20368. So, $20,368 - $416.70 = $19,951.30. Add another $185 for tag, title and registration. If the dealer leased a car at their true cost and with a money factor of 0.00153 = 3.67% interest, with your $3500trade-in it would come to $163.40 a month + tax (only $1.40 less per month than my example). Clearly, they would not normally be selling a vehicle close to or at their true cost, so they inflated the value of your trade-in to get you to ignore the high interest rate they were charging. If they bought your trade-in at the $3000 KBB value, you would then pay $178.39 per month + tax.
To simplify the example, assume that inflation = 3.67% a year and that the depreciation of 40% over 39 months is accurate. With that in mind, the dealership made a profit of ~$36 a month on you = $1400 over the length of the lease. In reality, they will make an additional profit on selling your trade-in and a 3rd profit when they re-condition and sell your leased car at the end of the lease. An appropriate ballpark profit to give a dealership is between a total of 4% to 8% above their true cost (depending on the popularity of the car). If you ballpark at 5% profit, in your case, you ought to be paying $171.60 per month.
I think you can see that it's best to calculate a lease using a worksheet, as a trade-in complicates the picture greatly - altering capitalized cost, rent charge and monthly fees in a confusing manner.
podunk503 - As an aside, that's a pretty funny handle considering we're talking about cars.
Anyways, your questions are way too broad to be answered in a forum like this. Go to www.carbuyingtips.com/lease.htm or to http://www.edmunds.com/advice/leasing/articles/ and read to your hearts content.
Brief answers: 1) Do you mean this offer on the vw.com website:
Jetta lease special for 2008 Jetta S, based on MSRP of $17,630.00 for a 2008 Jetta 2.5L S with Manual Transmission, excluding title, taxes, options and dealer charges. Monthly payments total $9,462.00. Requires dealer contribution of $145.80, which could affect final negotiated transaction. Purchase option at lease end for $10,401.70. For all offers at lease end lessees responsible for $0.20/mile over 39,000 miles and for damage and excessive wear.
Here's the analysis:
The dealer contribution of $145.80 gives you a purchase price of $17630 - $145.80 = $17484.20. The current residual for Jetta S is 60%. Working backwards, you get a money factor of 0.0024908 or around 5.98%. This is not a very "special" lease offer.
I was just offered (in Florida) a lease on a 2008 Jetta S automatic with mat kit - MSRP: 18,980 / $242 (+ tax) per month for 39 months / Cap Cost: $18,399 / Money Factor: 0.00185 / Residual: 60% for 12000 miles. This is $7 a month cheaper for a Jetta that is $1350 more expensive.
2) You usually can buy a leased car at the end - depends upon the lease contract.
3) You have no equity in a lease, thus no trade-in value. A lease in a car is similar (in a broad sense) to renting an apartment. The leasing company/bank possesses title, not you.
4) Money factor multiplied by 2400 = interest rate.
5) Like anything with car buying, everything is negotiable. Start with lowering the purchase price (AKA "capitalization cost") as much as possible. Then get the best money factor and residual value you can. This will give you the best possible total lease cost and monthly payment structure. Make sure you consider in your calculations all fees paid out of pocket, all fees added to the lease, cost for excess mileage and "disposition fee" (if any) at lease-end.
Thanks for that, climbonboard. I have a question though - how do I negotiate the lowest money factor and residual value? I am confident of getting the capitalized cost down quite a bit, but I have no idea what to do next. I am currently emailing/calling an internet sales manager in my area (I want to do most of my shopping via internet = less time to waste). Does it depend on my credit, etc.?
My experience in Madison, WI is similar. The dealers say the invoice price on a '08 Jetta SE auto with mats is $20,820, not the $20,513 quoted on Edmunds. They are willing to sell at invoice but not any less. Unfortunately, there is no competition in this town...all dealerships are owned by one company: VW; Nissan; Honda; Hyundai; Buick; etc.
First step in negotiations is have counter offers. E-mail ALL of the VWs that are within the distance you're willing to drive to (eventually) pick up the car. You can also follow the guidelines in this article.
You can try, but I don't know how successful you'll be taking the lowest offered money factor and highest offered residual value and trying to make a dealer match both.
If your credit rating is above 720 or so, you should have no problem qualifying for the best rates.
Use the worksheet on this website (I like it better than Edmunds' worksheet as it is far more detailed) to work the numbers.
Also, make sure to ask about "acquisition" or "inception" fees (money down to reduce the cap cost), security deposits, "disposition" fees (money due at lease end when you turn in your car), and charges per mile for excess mileage
Make sure to keep your trade-in (if any) out of the negotiations until you've gotten a quote you find acceptable. Only THEN add the trade-in into the picture.
I am looking at getting a Black color 2008 Jetta SEL with Beige Interior. -extra options include, all weather mats in trunk and car, ipod integration plus all the standard SEL features.
MSRP is $23850 Bargained price is $22009+title+tax etc..
Is that a good deal..or should I push my luck.
I am also looking to upgrade the rims from the standard thin fix spoke ones. I am going down to the dealership and asking them what my options would be for that. I was told on the phone, they can order them and I can have them installed as they come in. Sounds good.
I am looking to finance..hopefully I will get the 2.9% option.
no matter who flames this message I have to tell all regarding the lies and misinformation regarding junk fees added by vw and other brand dealers that seems to generate a lot of double talk on many different forums. DOC fees are pure profit to the dealer and many states have caps legally limiting how much a dealer can steal from consumers (how nice as they bribe legislators to remove caps completely or bump up the amount they can steal under the guise of legitimacy). DO NOT PAY them or make your offer 2-300 $ below what you want to pay so there is no argument by the time the finance guy shows your contract with it tacked on as they will notremove it as they have to rip everyone off evenly on the "fee". So advice is to figure that in your offer BEFORE you sit down with the finance folks. Sure they must pay the guy to input your info intothecomputer and print a dozen forms for signature or disclosure...takes about 10 minutes and and 1$ worht of paper. For someone who is paid 20$/hr that is worth 20/6=3$!!
Second there are NO regional advertising fees from VW to dealers as it would be invoiced). Some car salesman might say well there is a regional association of dealers and they run ads on tv etc...bull!! Only VW creates and apys for ads but if a dealerwant to have his own local tv spot then thats his overhead cost just like property tax, heat, etc..Just do not believe the bull.
Third the 25$ port fee is also not on the factory invoice or charged by VW. V all cost to gerW pays for delivery via the legitamate 600+$ destination fee which includes all costs to get the car from the factory to the dealer and for the dealer to "prep" the car , program features, remove plastic etc...)
So do not fall prey to these bull fees. Remember a dealer "invoice" is NOT THE SAME as a factory invoice!!!In fact the factory invoice will have the VWOA letthead and be official. A Dealer can put any item he wants on his invoice even if they are bogus....how about a bottled water fee or electricity fee, or health insurance fee etc...youg get it?
I do not know what type of experience you all are having, but the above statement on the fees is totally false. I am in management at a VW dealership, and I do not know about you state, bu I can assure you that it is illegal to add anything to the invoice, and the destination, regional ad fees, and port prep fees are totally legit, and NOT dealer profit. Also, in what alternate universe is a salesperson, or as mentioned in the above statement a finance manager paid hourly? 90 percent of dealers these days pay a flat for selling a particular type car, therefore, the salesperson doesn't care what you pay for it. Also, the finance mgr. is paid a flat for contracting the deal, and the sales managers are paid solely on volume. As I said, I don't know about all markets, but I never have a problem selling a car for invoice, as the sales department merely feeds the parts and service departments, and that is where the real money is made in a dealership. GOOD TO ALL AND GET READY FOR THE NEW VW MODELS THAT ARE COMING OUT AT THE END OF THE YEAR!!!!!!!! HAPPY CAR SHOPPING!!! Also, before you go to your dealership, remember, 1 in a million car dealers will fit the stereotype, so keep your guard up, but don't accuse one person for what you heard happened to somebody else, or for what has happened to you in the past.
Getting ready to purchase my new Jetta (VERY EXCITED) and have gotten one dealer to match Costco pricing, which is invoice, waiting to hear from other dealers. I really would like to get below invoice and know some of you had success with that. Is it really about being firm and having patience? I've never bought a new car before so it's all new to me at this point, and I'll admit, I'm a little wimpy!
Just as an update for anyone who is still looking to buy...
Went home with my new 2008 SE Auto in Platinum Gray last night. It was actually an ordeal and I nearly walked out three times because the dealer kind of pulled a bait and switch on me. I had a quoted OTD price for a car that basically didn't exist. First they said it was at a holding lot, then they said they couldn't find it anymore, then they told me they would have to find it at another dealer. All this after a full day of negotiating for it via email.
They did have the same car with some options that were nice, but not necessary. After some back and forth and their attempt at a hard sale on lease options, I got them to sell me the car they had (with ipod adapter, clear bra, monster mats kit) for $500 more then I had originally been promised with the first car, but still $700 less then they wanted for the car they had.
Total OTD price was $21,240 (had been promised 20,700 for the non-existent car), this included all title and registration fees. We live in Oregon so no sales tax.
I should have walked out on them for being such jerks in the first place, but for some reason the Jetta's are getting harder and harder to find in our state. Having talked to other dealers I knew there were no other options for me unless I wanted to wait two months +.
Buying experience was hell, but the car is a beauty and I already love her. I've named her Gretta
Looking to lease a Jetta SE. Dealer says he is giving us the vehicle at invoice and gave us a copy of the invoice. It is on VW letterhead directly from VW headquarters. Lists the total invoice price as 21,014 but this includes a few fees I am not quite sure of. The fees that are in addition to the car and the options are:
VW Dealer Association 200.00 Tank of Fuel and Interest Reserve 182.00 Port Prep Fee 25.00
Are those legitimate fees that are usually passed on to the consumer? Or should I ask them to be removed??? Any help would be appreciated!
Yes, those fees are legitimate. All of the dealers in your region have the same fees, which are charged to them by VW, and the amount charged through the vehicles invoice(total cost of the vehicle) directly. Where do you live? I would try to get $200 back of invoice if I were you, and I am a dealer!
Thanks for the reply. We are in upstate NY- Rochester. So are you saying I should negotiate 200 off the total invoice price he gave me? Based on that price he quoted us payments of 302/month for 36 months at 12K miles per year. This is with nothing out of pocket.
i don't want to buy now (april) if they have planned incentives for may (memorial day weekend sales event) what has been the experience in the past say 2007 i know dealers want to close deals especially at the end of the month, so i can wait i don't want to buy then poof a new incentive package
An 08 jetta se with 6spd auto black with tan interior
It's used with under 6500 miles. Price is $17888
I've talked to others about it and was advised that that price may be a little high. I think its a deal but i thought i'd post to get more opinions. thank you.
I live in the San Francisco Bay Area and am about to buy a 2008 Jetta Wolfsburg for $21,000 (automatic, with appearance package). Am getting the 2.9% rate through VW credit. Should I push for closer to 20K ?? Seems like this is as low as have been able to get, working with four different dealers. Take Care all!! :confuse:
I purchased a 2007 Jetta Wolfsburg with 14,000 miles for $17,250 (OTD). Completely loaded, auto w/tip-tronic, rear side airbags, rubber floor mats, and many other features. I have only put a few miles on it so far, but it's a fun car to drive and I'm proud to be a VW owner :-).
I was wondering if anyone here knows what a good deal for the 2008 Wolfsburg (automatic transmission) is. I will be buying this car in the SF Bay Area. According to MSN, the invoice price is $19,698 + $1,075 (auto trans.) = $20,773. How much below or above this price should be a good deal?
We just purchased a 2008 Wolfsburg, with auto and the spoiler/matt package ($499) and got them down to $20,500 + T&L and at the special APR of 3.9%. Did it at Dirito Brothers in Walnut Creek. Good Luck !
Pittsburgh...I traded in my 2001 Jetta for a 2008 Jetta SE (Auto,black). The MSRP was $21,760 {($21,575 car/automatic/destination) + $185 mats)}. The price I paid was $20,662 (plus TTL). I knew there would be "extra fees" on the invoice, but I was shocked to see $400 worth (advertising/reserve fund/prep fee). I was ok paying the invoice price..car/automatic/destination + $200 which came to $20,662. I refused to pay anything else...I was ready to walk, but then they agreed to the price. I got the full amout of my trade-in ($5100) and in a couple hours I was out the door with my Jetta. (It was a rough morning of negotiating.)
This was my first "new" car and I am really enjoying it. My advice to others is to do their homework and come with a folder full of info/research on the car.
Don't bother getting internet quotes from competing dealerships...It was a complete joke. All 3 quoted $200-300 below MSRP and they wouldn't negotiate any further unless I came in person.
after a lot of deliberation, we decided to get rid of my wife's 1995 MB C220 and get a new 2008 Jetta SE. So far, wonderful little car! Although she was upside down, we got good trade money, kicked in a little cash, got her payment just about the same. This is our first VW, and hope to enjoy it during this lease.
hi folks,i was at my local vw dealer today looking at 08 jetta S models and noticed that most of them came with bridestone tires..however,the one model that i liked was a jetta S model in salsa red that had michellin tires on it instead of the bridgestones that the other jetta's had on them....should i consider this a good thing and get the jetta with the michellin tires on it????
Yesterday I went to the Auto Mall in Vancouver BC (Cowell VW) and had a great experience, and a great deal. The sales guy was great, not pushy, and answered all our questions. Since we were still exploring other cars, we went away, test drove one other car, but ended up coming back to VW to test drive the 2008 City Jetta. LOVED IT. Although the other car we drove was nice, we got more "bang for our buck" at Cowell, and a great lease/trade-in value. 4 year lease @ 1.5%, 4 year/80,000km warranty, with a $2500 down payment (trade-in) which brought our monthly payments to less than $300!
They offered us the 7 year extended warranty but I dunno if we need it. Anyone know if it's worth it? We most likely won't buy the car at the end of the lease, and I don't know much about warranty stuff so I was wondering if its worth the extra $1840. We don't have to decide till we pick the car up and finish up the paperwork.
Anyway, the car should be ready for pickup on Thursday night. Can't wait!! :shades:
I have an '07 Jetta base with Michelins, and after 29K miles, there is still a lot of tread left. The Bridgestones used by VW aren't the top of the line, so I wouldn't expect comparable wear. If everything else is suitable, take the Michelins.
Pulled the trigger on a VW Wolfsburg today. $26,075 OTD, $6663 trade in ('04 Chevy Trail Blazer), $975 ext service contract. $20,762 @ 1.9% for 48 months. The Wolfsburg is platinum grey with art grey interior. Bought it for my wife and boy is it fun to drive. It was between an '08 LTZ Malibu and the VW. Sorry GM the VW was a better buy, lower APR, and is more fun to drive.
Mike, Very nice! Your Wolfsburg looks like my city Jetta but yours has more HP Still, souunds like you got an awesome deal too I got $2500 on trade-in for my 2000 Grand AM GT, but I can honestly say I'm NOT sad to see it go I've also had a Mazda MX-6 and although I test drove and liked the Mazda 3, the Jetta won my heart It's a smaller engine, and there's not as much HP as I'm used to but it's a fun ride, with more options than the mazda (I love the 6 speed automatic with tiptronic) and the payments were well within our range (less than $300/month) with approx $21K @ 1.5% for 48 months. Enjoy!
how does a 21000 loan at 48 months and 1.5% calculate to lessthan $300 a month?
It's a lease actually..and I'm no number cruncher..but with the total being something like $23,895 (can't remember offhand the exact amount), the payments were $318/month for 48 months @ 1.5%. Then we factored in the $2500 trade in value for my car (bringing the total to about $21,395) and it ended up being $268/month. Don't shoot the messenger hehe. All I know is that's what the final numbers are. :P
Im considering buying/leasing a 08 Jetta S 5spd. from Rusty Wallis Volkswagen in Garland, TX . They wont budge from his $17,000 plus TTL price. If I choose to buy or lease I'll have no problem affording the note. Should I keep leaning on them to get the price down to TMV (16,522) or accept the deal?
The $500 you will save is better in your pocket than the dealers. Keep the pressure on them. If they want to make a sale they will meet your price. Good luck.
Never leased before. Being offered $227/month for 36 months O.A.C. With no down-payment and only 1st month’s payment and DMV fees out of pocket ($437.95). The residual for the 3yr lease factored is $12,513.50.
There is no trade but they are willing to take it and lower terms accordingly. Is this a good deal?
How many miles/year on your lease? I was offered $268/month for 48 months with only the 1st month's payment due at lease signing. 15k miles/year. Depending on the miles in your lease it sounds like a better deal than I was offered.
Comments
in this western PA area all seems to have the floor mat included). With the floor
mat, Edmunds.com show MSRP/INVOICE/TMV to be $21,660 / $20513 / $21397.
(Dest charge included)
However, the VW dealers in this area said the invoice is $20,920, $400 over
Edmunds.com. Anyone know why?
The lowest price we got was $21,020. Seeing posts by tvfahlberg and sulltikk1, we
are wondering if we should wait for a better price. We would appreciate any
suggestion.
Thanks a lot!
Bought my 08 Jetta SE Auto yesterday at invoice from Young VW in Easton PA. This is my second purchase there. Great treatment and better deals! Finance dept got me 4.9% for 72 months through VW Credit on the 08, I just had to ask for it! Got an outstanding price on my trade in, too. Thery gave me $500-$1000 MORE than every other dealer I went to.
PS- I agree with Dallas. Jetta SE is an incrediblecar, and a SCREAMING BARGAIN at $20-$21k
After learning about this latest delay, I decided to just go out and get another 2.5. The TDI/DSG is a far superior drivetrain, but the 2.5 / 6 sp auto isn't a bad compromise for thousands less.
I first looked on ebay for a used TDI. Folks are getting close to MSRP on used TDIs with 20,000 + miles. YIKES!!
A license plate frame is easily removed.... a label epoxied to the paint, not so much.
I have to say that the VW dealers I've dealt with in NJ and PA are so much nicer and more customer-focused than the hostile dealers I used when living in MA.
The buying experience at Young was amazing. Very upfront with pricing... none of the "monthly payment" shopping I've experienced at other dealers who try to hide the cost of the car and trade in value in a monthly payment. There was no pressure either. On my first visit, they made an offer and I said I wated to shop around. One of the Youngs came over and without any pressure, offered to match any other deal I found, and was sincere and pleasant the whole time. Amazingly, theirs was the best deal anyway!
No pressure in the business office either. My credit uion was offering 5% for 72 months...they got me 4.9 for 72 thru VW Credit! They offered extended service and protection plans, and did not give me a hard time or make me feel guilty for declining these extras. I actually almost bought the Teflon paint protection, but didn't because it doesn't offer protection from fading (a MAJOR concern with the Salsa Red exterior).
Overall, Young exceeded my expectations for the second time in 16 months (bought my 06 Jetta there, too).
A money factor of .00278 x 2400 = 6.672% interest. Also, based on your example, it seems that you paid 7% sales tax. You got $3500 for your trade-in, which is a capitalized cost reduction of $3745 (including the savings on tax via your trade-in allowance).
I assume that all fees (tag, license, registration, dealer fees, etc.) are included in your $21000 purchase price, so that would equal your "gross capitalized cost". If you leased a Jetta SE automatic with no options that would be a dealer invoice of $20,368 and $20,513 with Jetta mat kit (included in almost every car).
The dealer invoice of $20,775 you stated includes some small "padding" for unnecessary dealer fees.
However, in order to get $199 + tax using your numbers, your cap. cost including all fees needs to be $20,637 (an additional $363 rebate not mentioned in your example).
The lease is calculated based on two factors:
1) Depreciation = adjusted cap. cost - residual value
and
2) Rent charge = (adjusted cap cost - residual value) * (money factor) * (lease term).
If you analyze the lease itself without including your trade-in, you would have been charged $298.48 + tax = $319.37 per month.
I don't know where you got a depreciation figure of $5755 from. Your base depreciation is 40% of $21,000, which is $8400. Subtract from that $3500 for your trade-in and another $363 rebate to make the numbers work. Your net depreciation is actually $4537.
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I'm not in your state (I'm in Florida), but I was offered yesterday from Gunther Volkswagen a 2008 Jetta SE (automatic transmission) with mat kit - MSRP: $21,660 and invoice of $20,513,
$275 (+ tax) per month for 39 months / Cap Cost: $20,875 + tag title and registration of $167.60 / Money Factor: 0.00153 / Residual: 57%
My residual is a little lower because I'm going for 15,000 miles a year. At 12,000 miles and 60% residual, I would be paying $259.90 (+ tax). All of my figures here include destination charge and other fees.
-------------------------------------------------------------------------------
BTW: you state that you got $500 extra over blue book value (I assume that's $500 over kbb "trade-in" price) for your trade-in. If you sold your trade-in to a private party, you would have made even more on the trade-in that what the dealership paid you (even with their "$500 extra").
If you calculate your lease using my numbers (and with a $3500 trade-in and 60% residual for 12000 miles), you would be paying $164.80 + tax per month.
The dealer's true profit on this deal is invoice minus holdback. VW holdback is 2% of BASE MSRP = 2% of $20835 = $416.70. Invoice on 2008 Jetta SE automatic w/ no options is $20368. So,
$20,368 - $416.70 = $19,951.30. Add another $185 for tag, title and registration. If the dealer leased a car at their true cost and with a money factor of 0.00153 = 3.67% interest, with your $3500trade-in it would come to $163.40 a month + tax (only $1.40 less per month than my example). Clearly, they would not normally be selling a vehicle close to or at their true cost, so they inflated the value of your trade-in to get you to ignore the high interest rate they were charging. If they bought your trade-in at the $3000 KBB value, you would then pay $178.39 per month + tax.
To simplify the example, assume that inflation = 3.67% a year and that the depreciation of 40% over 39 months is accurate. With that in mind, the dealership made a profit of ~$36 a month on you = $1400 over the length of the lease. In reality, they will make an additional profit on selling your trade-in and a 3rd profit when they re-condition and sell your leased car at the end of the lease. An appropriate ballpark profit to give a dealership is between a total of 4% to 8% above their true cost (depending on the popularity of the car). If you ballpark at 5% profit, in your case, you ought to be paying $171.60 per month.
I think you can see that it's best to calculate a lease using a worksheet, as a trade-in complicates the picture greatly - altering capitalized cost, rent charge and monthly fees in a confusing manner.
Anyways, your questions are way too broad to be answered in a forum like this. Go to www.carbuyingtips.com/lease.htm or to http://www.edmunds.com/advice/leasing/articles/ and read to your hearts content.
Brief answers:
1) Do you mean this offer on the vw.com website:
Jetta lease special for 2008 Jetta S, based on MSRP of $17,630.00 for a 2008 Jetta 2.5L S with Manual Transmission, excluding title, taxes, options and dealer charges. Monthly payments total $9,462.00. Requires dealer contribution of $145.80, which could affect final negotiated transaction. Purchase option at lease end for $10,401.70. For all offers at lease end lessees responsible for $0.20/mile over 39,000 miles and for damage and excessive wear.
Here's the analysis:
The dealer contribution of $145.80 gives you a purchase price of $17630 - $145.80 = $17484.20. The current residual for Jetta S is 60%. Working backwards, you get a money factor of 0.0024908 or around 5.98%. This is not a very "special" lease offer.
I was just offered (in Florida) a lease on a 2008 Jetta S automatic with mat kit - MSRP: 18,980 / $242 (+ tax) per month for 39 months / Cap Cost: $18,399 / Money Factor: 0.00185 / Residual: 60% for 12000 miles. This is $7 a month cheaper for a Jetta that is $1350 more expensive.
2) You usually can buy a leased car at the end - depends upon the lease contract.
3) You have no equity in a lease, thus no trade-in value. A lease in a car is similar (in a broad sense) to renting an apartment. The leasing company/bank possesses title, not you.
4) Money factor multiplied by 2400 = interest rate.
5) Like anything with car buying, everything is negotiable. Start with lowering the purchase price (AKA "capitalization cost") as much as possible. Then get the best money factor and residual value you can. This will give you the best possible total lease cost and monthly payment structure. Make sure you consider in your calculations all fees paid out of pocket, all fees added to the lease, cost for excess mileage and "disposition fee" (if any) at lease-end.
Good luck!
You can try, but I don't know how successful you'll be taking the lowest offered money factor and highest offered residual value and trying to make a dealer match both.
If your credit rating is above 720 or so, you should have no problem qualifying for the best rates.
Use the worksheet on this website (I like it better than Edmunds' worksheet as it is far more detailed) to work the numbers.
Also, make sure to ask about "acquisition" or "inception" fees (money down to reduce the cap cost), security deposits, "disposition" fees (money due at lease end when you turn in your car), and charges per mile for excess mileage
Make sure to keep your trade-in (if any) out of the negotiations until you've gotten a quote you find acceptable. Only THEN add the trade-in into the picture.
I am looking at getting a Black color 2008 Jetta SEL with Beige Interior.
-extra options include, all weather mats in trunk and car, ipod integration plus all the standard SEL features.
MSRP is $23850
Bargained price is $22009+title+tax etc..
Is that a good deal..or should I push my luck.
I am also looking to upgrade the rims from the standard thin fix spoke ones. I am going down to the dealership and asking them what my options would be for that. I was told on the phone, they can order them and I can have them installed as they come in. Sounds good.
I am looking to finance..hopefully I will get the 2.9% option.
Any comments would be nice.
Thanks.
Second there are NO regional advertising fees from VW to dealers as it would be invoiced). Some car salesman might say well there is a regional association of dealers and they run ads on tv etc...bull!! Only VW creates and apys for ads but if a dealerwant to have his own local tv spot then thats his overhead cost just like property tax, heat, etc..Just do not believe the bull.
Third the 25$ port fee is also not on the factory invoice or charged by VW. V all cost to gerW pays for delivery via the legitamate 600+$ destination fee which includes all costs to get the car from the factory to the dealer and for the dealer to "prep" the car , program features, remove plastic etc...)
So do not fall prey to these bull fees. Remember a dealer "invoice" is NOT THE SAME as a factory invoice!!!In fact the factory invoice will have the VWOA letthead and be official. A Dealer can put any item he wants on his invoice even if they are bogus....how about a bottled water fee or electricity fee, or health insurance fee etc...youg get it?
Any words of wisdom? Thanks in advance!
Went home with my new 2008 SE Auto in Platinum Gray last night. It was actually an ordeal and I nearly walked out three times because the dealer kind of pulled a bait and switch on me. I had a quoted OTD price for a car that basically didn't exist. First they said it was at a holding lot, then they said they couldn't find it anymore, then they told me they would have to find it at another dealer. All this after a full day of negotiating for it via email.
They did have the same car with some options that were nice, but not necessary. After some back and forth and their attempt at a hard sale on lease options, I got them to sell me the car they had (with ipod adapter, clear bra, monster mats kit) for $500 more then I had originally been promised with the first car, but still $700 less then they wanted for the car they had.
Total OTD price was $21,240 (had been promised 20,700 for the non-existent car), this included all title and registration fees. We live in Oregon so no sales tax.
I should have walked out on them for being such jerks in the first place, but for some reason the Jetta's are getting harder and harder to find in our state. Having talked to other dealers I knew there were no other options for me unless I wanted to wait two months +.
Buying experience was hell, but the car is a beauty and I already love her. I've named her Gretta
from VW headquarters. Lists the total invoice price as 21,014 but this includes a few fees I am not quite sure of. The fees that are in addition to the car and the options are:
VW Dealer Association 200.00
Tank of Fuel and Interest Reserve 182.00
Port Prep Fee 25.00
Are those legitimate fees that are usually passed on to the consumer? Or should I ask them to be removed??? Any help would be appreciated!
i know dealers want to close deals especially at the end of the month, so i can wait i don't want to buy then poof a new incentive package
black with tan interior
It's used with under 6500 miles. Price is $17888
I've talked to others about it and was advised that that price may be a little high. I think its a deal but i thought i'd post to get more opinions. thank you.
I thought that I'd report that I purchased today a 2009 Jetta Sportwagon SE. I believe they just hit the US market this week.
MRSP Sticker 21,349.00
Power Panorama Sunroof 1,300.00
6 Speed Tiptronic 1,100.00
Convenience Credit -75.00
Destination Charge 650.00
Total 24,324.00
Price Paid: 23,658.94
Dealer Fee 389.00
Plus the usual tax, tag and title stuff...
I'm very happy so far. Purchased at Fields BMW/VW in Daytona Beach, Fl.
I was wondering if anyone here knows what a good deal for the 2008 Wolfsburg (automatic transmission) is. I will be buying this car in the SF Bay Area. According to MSN, the invoice price is $19,698 + $1,075 (auto trans.) = $20,773. How much below or above this price should be a good deal?
Thanks.
MSRP $ 19,850
Auto $ 1075.00
Ipod Cradle Adapter $ 199.00
ALL Weather rubber mat kit $ 185.00
Destination $ 650.00
FINAL MSRP ON STICKER $ 21,959.00
Paid 21,500 OUT THE DOOR.
Thanx johndude, your post was very helpful.
This was my first "new" car and I am really enjoying it. My advice to others is to do their homework and come with a folder full of info/research on the car.
Don't bother getting internet quotes from competing dealerships...It was a complete joke. All 3 quoted $200-300 below MSRP and they wouldn't negotiate any further unless I came in person.
Looking forward to many years with my new Jetta!
we got good trade money, kicked in a little cash, got her payment just about the same.
This is our first VW, and hope to enjoy it during this lease.
4 year lease @ 1.5%, 4 year/80,000km warranty, with a $2500 down payment (trade-in) which brought our monthly payments to less than $300!
They offered us the 7 year extended warranty but I dunno if we need it. Anyone know if it's worth it? We most likely won't buy the car at the end of the lease, and I don't know much about warranty stuff so I was wondering if its worth the extra $1840. We don't have to decide till we pick the car up and finish up the paperwork.
Anyway, the car should be ready for pickup on Thursday night. Can't wait!! :shades:
The Wolfsburg is platinum grey with art grey interior. Bought it for my wife and boy is it fun to drive.
It was between an '08 LTZ Malibu and the VW. Sorry GM the VW was a better buy, lower APR, and is more fun to drive.
Very nice! Your Wolfsburg looks like my city Jetta but yours has more HP
It's a lease actually..and I'm no number cruncher..but with the total being something like $23,895 (can't remember offhand the exact amount), the payments were $318/month for 48 months @ 1.5%. Then we factored in the $2500 trade in value for my car (bringing the total to about $21,395) and it ended up being $268/month. Don't shoot the messenger hehe. All I know is that's what the final numbers are. :P
thanks
There is no trade but they are willing to take it and lower terms accordingly. Is this a good deal?
I was offered $268/month for 48 months with only the 1st month's payment due at lease signing. 15k miles/year. Depending on the miles in your lease it sounds like a better deal than I was offered.