Lease Questions 2016 VW GTI S Perf. Pkg + LED Pkg.

joeblonjjoeblonj Member Posts: 15
edited February 2016 in Volkswagen
I asked elsewhere without reply, so I'm posting her same questions:
OK, Went to Linden VW, they basically would not budge. I know spiffs are not good this month for VW's (GTI's), but if a $26,085k car is advertised for 12% off MSRP ($22,970), why can't I use THAT price to negotiate a lease? I'm told that the discount off of MSRP is only applicable for financing a deal, not lease. Is that true?
Also, like I said in an earlier post, I'm in no hurry, my existing lease expires in July, so I am now starting my shopping to hammer the best deal between now and then. Therefore, without going to each zip code, or plugging into cars.com, how can I find the fact match I am looking for so I can try to make a deal, or when a deal is available, I can find the car equipped the way I want it?
Also, I was told the MF is 0.00095 on a 10k per year lease, Rydell VW tells me nope, higher.
Who to believe, who to deal with, who to trust, how to craft a deal without all the BS scammers, wheeler dealers, time wasters?
So, I take the Leasehacker lease calculator, plug in MSRP of $26,085, do a sales price of $22,975, $500 incentive, $2,000 down (they tell me VW does not do additional security deposits, so if not, how is one to lower the costs?), acquisition fee of $625, residual of 61%, 36 months, 10k miles a year, mf of 0.00095, doc fee of $80, lic & reg of $400, 7% tax, I get $179 w/0 tax, $192 w/tax.
Why does nobody honor the stats? Why can I plug in the numbers, and not get a deal from any dealer, if the numbers I plug in are the numbers given by the dealer?
Also, Linden VW wanted to add $749.99 total sales tax, and in NJ any tax is on the monthly payment, not the full price like other states, they tell me it's the difference between MSRP and cap cost that I have to pay tax on. Is that legal?
So, those numbers were for a GTI S 6 Spd, I come to find out, and did not include perf pkg and led pkg (they said it did have perf pkg, they lied), so the car I'm looking for is about $28k, and 12% off of that is $3360 making the initial cap cost $24,640 still gets me to a $201 per month payment.
Any help to make the deal as well as find a deal as well as find the car?

Comments

  • MichaellMichaell ColoradoModerator Posts: 193,287
    edited February 2016
    joeblonj said:

    I asked elsewhere without reply, so I'm posting her same questions:
    OK, Went to Linden VW, they basically would not budge. I know spiffs are not good this month for VW's (GTI's), but if a $26,085k car is advertised for 12% off MSRP ($22,970), why can't I use THAT price to negotiate a lease? I'm told that the discount off of MSRP is only applicable for financing a deal, not lease. Is that true?
    Also, like I said in an earlier post, I'm in no hurry, my existing lease expires in July, so I am now starting my shopping to hammer the best deal between now and then. Therefore, without going to each zip code, or plugging into cars.com, how can I find the fact match I am looking for so I can try to make a deal, or when a deal is available, I can find the car equipped the way I want it?
    Also, I was told the MF is 0.00095 on a 10k per year lease, Rydell VW tells me nope, higher.
    Who to believe, who to deal with, who to trust, how to craft a deal without all the BS scammers, wheeler dealers, time wasters?
    So, I take the Leasehacker lease calculator, plug in MSRP of $26,085, do a sales price of $22,975, $500 incentive, $2,000 down (they tell me VW does not do additional security deposits, so if not, how is one to lower the costs?), acquisition fee of $625, residual of 61%, 36 months, 10k miles a year, mf of 0.00095, doc fee of $80, lic & reg of $400, 7% tax, I get $179 w/0 tax, $192 w/tax.
    Why does nobody honor the stats? Why can I plug in the numbers, and not get a deal from any dealer, if the numbers I plug in are the numbers given by the dealer?
    Also, Linden VW wanted to add $749.99 total sales tax, and in NJ any tax is on the monthly payment, not the full price like other states, they tell me it's the difference between MSRP and cap cost that I have to pay tax on. Is that legal?
    So, those numbers were for a GTI S 6 Spd, I come to find out, and did not include perf pkg and led pkg (they said it did have perf pkg, they lied), so the car I'm looking for is about $28k, and 12% off of that is $3360 making the initial cap cost $24,640 still gets me to a $201 per month payment.
    Any help to make the deal as well as find a deal as well as find the car?

    February lease numbers for the GTI - 36 months, 10,000 miles per year - are .00125 and 61%. No idea where the .00095 MF came from.

    Next - yes, there are certain incentives that are applicable to purchases only and cannot be used for leasing. This will make the cap cost higher than your examples.

    I cannot speak to the accuracy of any on-line lease calculator - it may make assumption we know nothing about. I built my own in a spreadsheet.

    In NJ, sales tax on a lease is calculated against the sum of the payments and either collected up front at lease inceptions or added to the cap cost.

    Despite all the issues that VW is having, I believe getting 12% off sticker on a GTI will be an uphill battle.

    Negotiate your best price, make sure you know what taxes and fees are being added into the cap cost, then run the numbers. Or, share them with us and we can help you.

    We don't recommend making a down payment on a lease - if the car is stolen or totaled, you lose that money.

    One final note - if your current lease ends in July, why are you looking now? The lease numbers are certain to change between now and then, and getting out of your lease early could be expensive.

    I'm in a lease until October and I've tried a couple of times to swap out into something else, but the negative equity I have queers any possible deal I might make.

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  • kyfdxkyfdx Moderator Posts: 197,906
    @joeblonj Most of the advertised internet prices for $4000-$6000 off MSRP are pure fiction, which you find out, once you start asking for details.

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  • joeblonjjoeblonj Member Posts: 15
    I have 2 payments left on my existing lease. I always pay 1-2 months ahead to have a cushion for emergencies. $157.98 x 2 is cheap. Do I have a penalty if I get out of that existing lease? If a deal is made for a new car to lease doesn't the dealer handle the old car? Is there a penalty to turn in a few months early? (Ford Focus EV). So if $0 is the suggested down payment and there are no MSD's from VW (multiple security deposits) how do I reduce a payment to what I wish to have?
    I really like the car but heck for what they want me to pay I can get a $57k Lexus for $195 per month more than the $345 per month that VW wants. And given the fact that VW sales are slumping 25% since diesel-gate one might think that VW would be a little more anxious to deal.
    Point is I don't need a car yet but I figure if I start looking now I'm more educated. Also by June/July the season is close to done before new models are introduced and of course they will be cheaper. And if I can't find what I want then I can't order and have to settle for what is available.
    Again, I like the GTI but I don't need to pay an inflated price.
    I got the 2013 Focus EV in 2013 (a $40k car) with $2k down for $157.98/mo. And THAT is the type of deal I'm lookin for.
    Heck, for $200 a month moreover than the $345 VW wants I can get a Cayman or Boxster.
    So I do appreciate the suggestions but I'm lookin for the special deal. They do exist. Depends on the hunger of the dealer I suppose.
  • MichaellMichaell ColoradoModerator Posts: 193,287
    joeblonj said:

    I have 2 payments left on my existing lease. I always pay 1-2 months ahead to have a cushion for emergencies. $157.98 x 2 is cheap. Do I have a penalty if I get out of that existing lease? If a deal is made for a new car to lease doesn't the dealer handle the old car? Is there a penalty to turn in a few months early? (Ford Focus EV). So if $0 is the suggested down payment and there are no MSD's from VW (multiple security deposits) how do I reduce a payment to what I wish to have?
    I really like the car but heck for what they want me to pay I can get a $57k Lexus for $195 per month more than the $345 per month that VW wants. And given the fact that VW sales are slumping 25% since diesel-gate one might think that VW would be a little more anxious to deal.
    Point is I don't need a car yet but I figure if I start looking now I'm more educated. Also by June/July the season is close to done before new models are introduced and of course they will be cheaper. And if I can't find what I want then I can't order and have to settle for what is available.
    Again, I like the GTI but I don't need to pay an inflated price.
    I got the 2013 Focus EV in 2013 (a $40k car) with $2k down for $157.98/mo. And THAT is the type of deal I'm lookin for.
    Heck, for $200 a month moreover than the $345 VW wants I can get a Cayman or Boxster.
    So I do appreciate the suggestions but I'm lookin for the special deal. They do exist. Depends on the hunger of the dealer I suppose.

    The Focus EV also had a gigantic amount of lease cash available, which cut the payment by a whole bunch.

    You want a good deal? There are folks reporting leases of the BMW i3 for under $300/mo. This is a car that stickers north of $50k.

    Another great deal is the Infiniti Q50 - again, around $300/mo.

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  • joeblonjjoeblonj Member Posts: 15
    edited February 2016
    Sure, if you want range anxiety, i3 then, I've had it with the electric, in the middle of a lemon law shootout with Ford, so unless I can afford a Tesla, electric is out, as the market will be flooded with EV's in the future as gas is low, and technology is getting even better in the next year or 2, so whatever inventory exists with sub-100 mile per charge are killer deals I am sure, just not for me anymore.
    Thanks so far for the replies, still hoping for the GTI at a great price, as I just hate getting the Porsche dirty in the winter.......
  • joeblonjjoeblonj Member Posts: 15
    I still need a reality check.
    I've scoured all of the various forums, discussions, etc., in multiple locations to get a clear, full understanding of how lease numbers are so varied. I still cannot grasp why a $25k car can be leased for $160/mo. in one place, and another $25k car is $350/mo.. I can provide specific documents, examples, etc., to verify and validate a $160/mo. lease (scanned PDF's) and still I don't "get it" when I walk into 1 dealer a car that has a MSRP of say $28k with a negotiated price of say $25k is one price and another dealer is in orbit around a distant planet.
    I understand all of the numbers given as examples here on this forum, and that some can be modified and skewed to make an end result look any way the dealer wants it to look, but if you use a lease calculator (of the many out there) and punch in the MSRP, the negotiated price, the money factor, the residual, the the term, the mileage, the down payment (if any), the costs (lic., dealer, bank, etc.) I still come up with an end result of about $215 a month with a $3,000 down payment, and $980 in all the other fees, etc.
    Why is it then the numbers do not compute?

    MSRP:$28,680
    Sales Price:$24,952k (11% off MSRP)
    Taxed Incentives: $1,000
    Untaxed Incentives: $0
    Down Payment: $3,000 (Not recommended)
    Acquisition Fee: $595
    Net Capitalized Cost: $21595
    Residual: 61 %
    (10000 miles/yr)
    Months: 36
    Miles/yr: 10,000
    Money Factor: (0.00195) APR: 4.68%
    Monthly Payment (Excl. Tax): $189
    Document Fee: $80
    License/Registrat. Fee: $400
    Sales Tax: 7 %
    Monthly Payment (incl. tax): $202
    Drive Off: $3968

    So, is the lease calculator at leasehackr wrong or am I not correctly entering information?
  • kyfdxkyfdx Moderator Posts: 197,906
    joeblonj said:

    I still need a reality check.
    I've scoured all of the various forums, discussions, etc., in multiple locations to get a clear, full understanding of how lease numbers are so varied. I still cannot grasp why a $25k car can be leased for $160/mo. in one place, and another $25k car is $350/mo.. I can provide specific documents, examples, etc., to verify and validate a $160/mo. lease (scanned PDF's) and still I don't "get it" when I walk into 1 dealer a car that has a MSRP of say $28k with a negotiated price of say $25k is one price and another dealer is in orbit around a distant planet.
    I understand all of the numbers given as examples here on this forum, and that some can be modified and skewed to make an end result look any way the dealer wants it to look, but if you use a lease calculator (of the many out there) and punch in the MSRP, the negotiated price, the money factor, the residual, the the term, the mileage, the down payment (if any), the costs (lic., dealer, bank, etc.) I still come up with an end result of about $215 a month with a $3,000 down payment, and $980 in all the other fees, etc.
    Why is it then the numbers do not compute?

    MSRP:$28,680
    Sales Price:$24,952k (11% off MSRP)
    Taxed Incentives: $1,000
    Untaxed Incentives: $0
    Down Payment: $3,000 (Not recommended)
    Acquisition Fee: $595
    Net Capitalized Cost: $21595
    Residual: 61 %
    (10000 miles/yr)
    Months: 36
    Miles/yr: 10,000
    Money Factor: (0.00195) APR: 4.68%
    Monthly Payment (Excl. Tax): $189
    Document Fee: $80
    License/Registrat. Fee: $400
    Sales Tax: 7 %
    Monthly Payment (incl. tax): $202
    Drive Off: $3968

    So, is the lease calculator at leasehackr wrong or am I not correctly entering information?

    Lets not worry about the lease calculator.
    First, is your sale price $24,952? Because you seem to have rounded it off to $25,000, when subtracting the incentive and the downpayment.

    Base MF is .00125

    Residual has dropped to 60% for March for 36/10.

    But, using your MSRP, NET CAP and .00195 MF and 61% residual, I get $190.12/mo.+tax, so pretty close to the $189/mo.

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  • joeblonjjoeblonj Member Posts: 15
    I feel like something is not right....
    $28,680 MSRP
    $27,300 Sell price
    $3,000 down
    36 mo/10k year
    $220/mo?

    Automobile: New 2016 VOLKSWAGEN GTI 2dr HB S w/Performance Pkg AT w/AC , Automatic , Odom: 10
    Vehicle Cost: 27,760.75 MSRP: 28,680.00 Term: 36
    Lender: Volkswagen, 10,000, Acq: CAP, Sec: 0,Specia1,70%,Lease Excess Wear Care Minimum,Non-Wear Care,Non-Wholesale,Tier A

    Amount Due at Signing
    1st Month Payment 220.00
    Security Deposits 0.00
    Acquisition Fee 0.00
    Fees & Insurance 485.00
    Upfront Taxes 895.56
    Cap Reduction (Cash) 3,620.00
    Total Inception Fees 5,220.56
    Net Trade as Cap Reduction 0.00
    Rebate as Cap Reduction 1,000.00
    Total Drive Off 6,220.56
    How Inception Fees are Paid
    Cash as Drive Off 0.00
    Net Trade as Drive Off 0.00
    Rebate as Drive Off 0.00
    Inception Fees Due (Added to Cap) 0.00
    Total Paid 0.00
    Remaining Due (Still Owed) 5,220.56
    Total Cash Required on Delivery 5,220.56

    Payment Information
    Final Payment 220.00

    Profit
    Vehicle Profit -460.75
    Option Profit 0.00
    Acquisition Fee Profit 0.00
    Trade Profit 0.00
    Tax Credit Profit 0.00
    Tax Credit Fee 0.00
    Back End (70.00%) 0.00
    Dealer Cash Profit $250
    Total Profit -210.75

    Rate Information
    Retention Rate 0.00125
    Reserve Profit 0.00000
    Disclosed Rate 0.00125

    Residual Information
    MSRP 28,680.00
    Low MSRP 28,680.00
    MRM 0.00
    Con Van Residual 0.00
    Residual (Base) 57.00
    Residual (Bump) % 3.00
    Residual (Bump) $ 0.00
    Additional Miles Adj. (0.00)
    Odometer Over Adj. (0.00)
    Total Residual 17,208.00
    Dealer Options 0.00
    Factory Options 0.00
    Purchase Option 17,208.00

    Capitalized Cost Breakdown
    Vehicle Cost 27,760.00
    Vehicle Profit -460.75
    Option Price 0.00
    Total Selling Price 27,300.00
    Acquisition Fee 625.00
    Fees & Insurance 0.00
    - Cap Reduction (Cash) 3,620.00
    - Trade In 0.00
    - Customer Rebate 1,000.00
    Total Capital Reduction 23,305.00
    Capital Cost 23,305.00
    Capped Taxes 0.00
    Total Capital Cost: 23,305.00

    Tax Breakdown
    Type Amt Rate Paid
    Cashdown Tax 328.65 7.00 Upfront
    Tire Tax 12.50 N/A Upfront
    Upfront Tax 554.41 7.0000 Upfront

    Mileage Information
    Allowed Miles Per Year 10,000
    Mileage Program 10,000
    Add. Purchased Miles per Yr 0.00
    Additional Miles Chrg 0.00
    Total Mileage Chrg 0.00
    Total Mileage Allowed 30,000
    Excess Mileage Chrg 0.20
    Odometer 10

    Trade Information
    Total Gross Trade 0.00
    Total Owed Trade 0.00
    Total Equity 0.00
    Total ACV Trade 0.00

    Maximum Advance Information
    Max Advance $37,909.00
    Max Advance % 130.00

    Miscellaneous Information
    Tax Credit Amount 0.00
    Max. Reserve Profit 0.00125

    Fee Breakdown (ESTIMATE)
    DocFee $75.00
    Reg $400.00
    Insp 10.00
  • kyfdxkyfdx Moderator Posts: 197,906
    joeblonj said:

    I feel like something is not right....
    $28,680 MSRP
    $27,300 Sell price
    $3,000 down
    36 mo/10k year
    $220/mo?

    Automobile: New 2016 VOLKSWAGEN GTI 2dr HB S w/Performance Pkg AT w/AC , Automatic , Odom: 10
    Vehicle Cost: 27,760.75 MSRP: 28,680.00 Term: 36
    Lender: Volkswagen, 10,000, Acq: CAP, Sec: 0,Specia1,70%,Lease Excess Wear Care Minimum,Non-Wear Care,Non-Wholesale,Tier A

    Amount Due at Signing
    1st Month Payment 220.00
    Security Deposits 0.00
    Acquisition Fee 0.00
    Fees & Insurance 485.00
    Upfront Taxes 895.56
    Cap Reduction (Cash) 3,620.00
    Total Inception Fees 5,220.56
    Net Trade as Cap Reduction 0.00
    Rebate as Cap Reduction 1,000.00
    Total Drive Off 6,220.56
    How Inception Fees are Paid
    Cash as Drive Off 0.00
    Net Trade as Drive Off 0.00
    Rebate as Drive Off 0.00
    Inception Fees Due (Added to Cap) 0.00
    Total Paid 0.00
    Remaining Due (Still Owed) 5,220.56
    Total Cash Required on Delivery 5,220.56

    Payment Information
    Final Payment 220.00

    Profit
    Vehicle Profit -460.75
    Option Profit 0.00
    Acquisition Fee Profit 0.00
    Trade Profit 0.00
    Tax Credit Profit 0.00
    Tax Credit Fee 0.00
    Back End (70.00%) 0.00
    Dealer Cash Profit $250
    Total Profit -210.75

    Rate Information
    Retention Rate 0.00125
    Reserve Profit 0.00000
    Disclosed Rate 0.00125

    Residual Information
    MSRP 28,680.00
    Low MSRP 28,680.00
    MRM 0.00
    Con Van Residual 0.00
    Residual (Base) 57.00
    Residual (Bump) % 3.00
    Residual (Bump) $ 0.00
    Additional Miles Adj. (0.00)
    Odometer Over Adj. (0.00)
    Total Residual 17,208.00
    Dealer Options 0.00
    Factory Options 0.00
    Purchase Option 17,208.00

    Capitalized Cost Breakdown
    Vehicle Cost 27,760.00
    Vehicle Profit -460.75
    Option Price 0.00
    Total Selling Price 27,300.00
    Acquisition Fee 625.00
    Fees & Insurance 0.00
    - Cap Reduction (Cash) 3,620.00
    - Trade In 0.00
    - Customer Rebate 1,000.00
    Total Capital Reduction 23,305.00
    Capital Cost 23,305.00
    Capped Taxes 0.00
    Total Capital Cost: 23,305.00

    Tax Breakdown
    Type Amt Rate Paid
    Cashdown Tax 328.65 7.00 Upfront
    Tire Tax 12.50 N/A Upfront
    Upfront Tax 554.41 7.0000 Upfront

    Mileage Information
    Allowed Miles Per Year 10,000
    Mileage Program 10,000
    Add. Purchased Miles per Yr 0.00
    Additional Miles Chrg 0.00
    Total Mileage Chrg 0.00
    Total Mileage Allowed 30,000
    Excess Mileage Chrg 0.20
    Odometer 10

    Trade Information
    Total Gross Trade 0.00
    Total Owed Trade 0.00
    Total Equity 0.00
    Total ACV Trade 0.00

    Maximum Advance Information
    Max Advance $37,909.00
    Max Advance % 130.00

    Miscellaneous Information
    Tax Credit Amount 0.00
    Max. Reserve Profit 0.00125

    Fee Breakdown (ESTIMATE)
    DocFee $75.00
    Reg $400.00
    Insp 10.00

    It all adds up, but it's $5220 due at signing...

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