to know whether this is a good deal or not, we would probably need the following:
1) the msrp of the car (not really needed, but am curious) 2) the cap cost of the car (the "selling" price)-- i assume you negotiated this. 3) the money factor 4) the residual value of the car.
I went about this deal backwards, I told the dealer that I wanted to keep payments low and didn't negotiate the price (I assume it is ~$20,230). I wanted to try to piggy back off of VW's current lease special on the manual Jetta. I read somewhere that when a lease deal is good, you cannot negotiate the price.
Anyways, I got the money factor of .00153 with a residual factor of 47% from another dealer. The other dealer actually quoted me this from a Passat. Would the money factor and residual be the same from dealer to dealer? Again, I went about this all backwards I think. I am screwed aren't I??? Any other gotcha's that this noobie should be aware of? Any "hidden" incentives that I can use? If I had an Audi, would I qualify for VW return customer rebate? Thanks again!
To me it seems that my backward logic yields a pretty good deal, but again I don't know for sure as I am new to this game. I am making some big assumptions here by using the money factor and residual % provided to me for a Passat and from another dealer.
I guess ideally I would like to match the current national offer for the Jetta Value Edition (manual trans).
I don't think your logic is correct. First of all, you are NOT financing anything if you are leasing. You are basically renting the car for the term of the lease. So, the price of the car is the price of the car, no matter how much money you put down. The $$ you put down on the car ONLY lowers your monthly payment.
Bottom line is you are not "ahead payments", you are just paying about $100 ($20 per $1,000 down) less per month because of the $$ you put down.
As far as your guote "At the end of the lease terms I will have spent the same amount of money regardless of making the down payment or not." If you put down $5000 you will most likely be paying about $100 less per month. Therefore, if you lease for a 36 month term that equates to about $3,600 ($100 x 36) in a reduction of your monthly payments. To me, you will save about $1,400 if you keep the $5,000 in your pocket and not in the dealers bank.
Someone correct me if I am wrong here in my thinking!!!
If you put down $5000 that will reduce your payments by about $138 per month. 5000/36 = $138. The $20 per $1000 is for a regular purchase at 60 months not a lease.
Not sure where you got $36 per $1,000. I have leased over 8 cars in my life and the $20 per $1,000 has always been the case.
Nevertheless, in this case my point still stands. Putting $5K down on a lease is not a smart financial strategy.
You said: "The $20 per $1000 is for a regular purchase at 60 months not a lease." This statement for a purchase is very misleading. If you are purchasing a car, the amount per $1,000 completely depends on the interest rate involved. The lower the interest rate the more car you get for your money (i.e.: Finance for 60mo payback is $15 per $1,000). Again, in a purchase its all about the ineterst rate.
Hi, I'm wondering why the Jetta has a higher rate (.00135) than the Passat (0.00099) at the moment. Is this a good deal?
I've been offered a Jetta 2.0T automatic, with package 1 and navigation for $27,093 (MSRP 28955.00). The residual is .53 ($15346.15). For 36 months at 12,000 miles per year. The total cash up front is $2428.31. (sec deposit $425, doc fee 99.00, cash 1600, title 243, taxes 1359.6) leading to monthly payments of $403.31.
Personally I'm keener on the Passat, but my wife likes the automatic climate controls, power seats, and the nav system on the Jetta (a Passat with nav but no power seats or auto aac is $388 per month).
I can get same car if I buy it, for 25,635, but I'm not sure I'd like it to keep it longer than 3 years because I find the ride a bit stiff and bumpy (and we may have kids who require a bigger car by then). I may kill off the nav system which should drop payments down to $377 per month.
Thoughts anyone? Lease or buy? Is this a good deal?
Go figure. Got a call today from the sales manager. He said the money factor was incorrect (quoted by another sales guy) He claims money factor is .00143 for GLI 36 month, 10k lease, with residual value of 54%. Our negotiations were over the phone I had nothing in writing.
wouldn't the monthly payment be negligible based on such a small increase in money factor? what was the difference in monthly payment.
as an aside, and this is just a general statement, i don't quite understand a 10000 mile lease-- seems like you don't really have enough miles to really enjoy the car. seems you can't use the car for any kind of vacation.
Car Man: Although this is my first posting, I must thank you as I have leased several cars using this forum. I have been shopping for a car for my son. A few days ago we settled on a Jetta and negotiated a great purchase price ($250) under invoice. With the July lease money it seemed the dealership was making a fair - small profit of $ 500. The problem is, I never put a deposit down and due to work issues was not able to get back to the dealership until today. The car my son wanted was sold - In 100 degree weather we shopped this very large lot and unfortuantely was not able to find color combo with eqipment that we wanted. I know that shopping near the end of the month often yields the best deal. But I am a firm believer that you should get what you want - especially when buying an item such as car. With all this being said - we decided to have the dealership locate the combo that we wanted. ( We agreed to pay the extra cost to obtain the car.) Although the sales manager told me he was uncertain how the August VW residuals and money factors would fair - he assured me that he would give me the same invoice deal on the sale of the car once it was on the lot. Now this is where I need your help - would you please let me know as soon as possible the following:
2006 VW Jetta 2.5 Residuals, Money Factors, and VW Lease Money available for both a 24 and a 36 month lease with 12,000 per year milage.
I think I have this leasing concept down THANKS to you and Edmunds.com. I hope by waiting I did'nt risk the deal I had negotiated.
Assuming I will able to find what I want I'm aiming to a Jetta 4dr. Sedan 2.5 w/ Automatic transmission (MSRP=20365, Invoice=19760) with Rear airbags + Rubber mats + Trunk liner + splash guards + cargo net (MSRP=698 Invoice=595)
The Carsdirect price today for that car is $20,762 and the destination charge for any VW is 630. Assuming a bank fee of 575 (I think I saw that somewhere but I'm not sure about it) and 200 more for title and registration the Cap cost is going to be 21537.
Using the July numbers for a 36 months, 12K miles/year (MF= 0.001380 and RV=54%) my calculations are a Residual=12254.22 and Rental=1687.65 leading to a monthly payment (pretax) of $304.49
I really need the new numbers for a 2006 Jetta 2.5 Sedan. 24 Month, 12K lease. Residual, Moneyfactor and VW lease money incentive available for the month of August.
Hi anzuelo. Lease cash works just like customer cash does, but for a lease. Negotiate the lowest selling price that you can on the car that you are interested in before any incentives are taken into account and then have the dealer subtract any available lease cash from that price.
Hi coness. I haven't seen any mention of this lease cash in the incentive section of this site either, but trust me it definitely exists. Just tell the dealer that you know about it and take it into account during your negotiations.
Hello starbird. Most vehicles have different money factors from each other. There are a number of possible reasons why the Jetta's money factor is higher than the Passat's is right now. Perhaps the Jetta's residual values are better and VW doesn't need to provide as much money factor support on it. Or perhaps VW is having an easier time selling the Jetta than the Passat right now.
Let's taka a look at the selling price that you were quoted for the Jetta that you want to lease. The dealer invoice price for a 2006 VW Jetta 2.0T Sedan with automatic, Package 1, and navigation is $26,693. You were quoted a selling price of $27,093, which is $500 over invoice. Normally this would be a pretty good price, but Volkswagen is currently providing $1,000 lease cash on 2006 Jetta 2.0T models. This means that the price you were quoted is more like $1,400 over invoice, which isn't great. I would try to negotiate a lower selling price if I was in your situation.
Hi inzax. Dealer invoice is a pretty good selling price for a lease of a 2006 Jetta GLI. The dealer is actually making $500 on your car once the lease cash that is currently available on it is taken into account. The .00143 money factor that you were quoted the second time around is correct. As they stated, the first salesperson who you spoke with must have made a mistake.
Welcome townie67. I'm glad that you have found this forum so helpful. $250 under dealer invoice is a good price for a lease of a 2006 Jetta 2.5 right now. As you mentioned, in reality it is more like $500 over invoice once the $750 lease cash that VW is currently providing on '06 Jetta 2.5 models right now is taken into account. Here's the latest lease info for you. Volkswagen Credit's current buy rate lease money factor and residual value for a 24 month lease of a 2006 Jetta 2.5 (not the Value Edition) with 12,000 miles peer year are .00079 and 64%, respectively. The numbers for an otherwise identical 36 month lease should be .00138 and 54%.
Hello anzuelo. Volkswagen Credit charges an acquisition fee of $575 on every vehicle that it leases. I am not sure if it automatically includes gap insurance in its leases, I suspect that it does but I am not positive. The F&I person at the dealership that you are working with should be able to tell you for certain.
Thanks for the info Car_Man. Unfortunately, I wasn't able to play this card at the time of my lease because no one could confirm or deny that it existed.
Hi phaedrus76. Volkswagen Credit's current buy rate lease money factor and residual value for a 24 month lease of a 2006 Jetta GLI with 12,000 miles per year are .00086 and 63%, respectively. The numbers for an otherwise identical 36 month lease should be .00143 and 53%. VW is providing $500 lease cash on the '06 Jetta GLI this month. Make sure to take this cash into account when negotiating your car's capitalized cost.
CarMan, I'm glad I stumbled across this forum! I was offered a 24 month lease on a '06 Jetta (package 2) with 15,000 miles per year. Is this a good deal or should I shop around? Thanks.
I have a called a couple of dealerships for quotes on a 2.5 Jetta, Package 1 for 48 month/15K mile lease. The one that seems to be the best saying the price would be $20,998 and the payments would be about $315 tax included.
Does this sound like a good deal? What should the money factor be on this type of lease?
It would only increase it by about 5-10 bucks. Based upon previous posts: Assuming MF of .00138, cap cost of 20,998, and residual of 54%, I calculate the payments to be about $318.00 (using 6.5% sales tax rate). I believe you are getting a fair deal.
W/ regards to 3 vs. 4 yr lease, it is totally your preference. I don't believe there really is any benefit. Just MAKE sure you don't go beyond 4 yrs as I believe the warrantee expires after that. HTH!
Car_Man (or anyone else), please analyze this trade:
terms: 48mo/12k lease of 2006 2.5 jetta package 1
trade in: 02 grand prix gt (kbb $7500, payoff $9500 = neg equity $2000) zero $ down.
i know there are a lot of variables here, but what is "fair" or a good deal for ME. the salesman has already apparently lied about the $750 lease cash, assuming it is currently valid, so i dont trust the invoice numbers they were showing me either. can you break this down? just an outright buy with ignoring the trade in would be helpful at this point. thanks.
also, how does one prove the existence of lease cash if the dealership doesnt acknowledge it?
Hi all - GREAT Forum! I have a few questions I hope someone can address for me - I went to my local Tampa dealership yesterday to see about leasing a 2.5 and was given the following numbers: Price $20595.00 Term 48mths Rate .00189 MSRP 21995.00 Residual .47 Cash down $500.00 Doc Fee $489.00 No security deposit Residual 10337.65 Monthly Payment $305.19 Is this a good deal? What kind of lease cash is offered for August on the 2.5? And why does the total amount of payments I would make, plus the residual, add up to WAY more than the price quoted, were I to choose to buy it? I've never leased before and don't want to get hosed on this -any help is appreciated - THANKS!
I am looking at leasing a 2006 Jetta 2.5L , auto, and have been quoted $209 out the door, nothing else added on from reading these threads, this seems unreal! that is 12K and with $3,000 down, although I see here that putting down in not wise, however, we need to keep monthly payments down (how much would it increase each month with NO money down?) thanks for any help
Can you post what the current terms are for a 06 jetta gli for 48mos@15K/mo.
I am in a unique situation where I already signed my lease, but they put the wrong VIN on my contract. So they want me to resign with the correct vehicle, but I think all the terms they told me were based on the other car (the car I wanted in the first place)
so at a minimum, I get to ask them for all the numbers they put in the terms before I resign, so I can make sure I am getting the best deal now!
First, let me tell you how happy I am to have stumbled onto this site. I've leased cars for the past ten years but have never had so much good information before going into "battle". I am looking at leasing a 2006 [because I understand VW is supposedly making the '06 especially attractive to lease] 2.5 automatic with package 1 and a cargo net. Msrp on this car is $23,644 and invoice is $21,907. Plugging in the .00138 money factor and 54% residual you give for a 36 month lease, and using 6.25 as the tax rate; $575 VW lease fee and $500 title/license fee-then subtracting the $750 VW cash-I come out with payments of $333.00 per month. Two different dealers have come back with quotes of $380 and $375. What am I missing and/or doing wrong? Thanks in advance for your reply. trainnut
No, I didn't add the tax to the cap amount, because I had no idea that was what Texas dealers did. Again, thank you for being there and providing information that the average smuck wouldn't otherwise be aware of. trainnut
O.K., I added the $1400 tax into the equation and, as you suspected, the payment went to almost exactly what the dealers had quoted. If your suggestion would be to buy rather than lease, what goodies are out there to entice buyers right now. Also, does VW's driver option plan function any differently than a straight lease so far as costs are concerned? trainnut
I am collecting quotes from dealers - here's the best I have so far w/12.000 a year, 24 mo lease
Original MSRP: $19,605 Leasing Cap cost:$18,585 Down payment: $1,013 (includes first month's payment, DOT fees for title & plates and aquisition fee of $575). No cap cost reduction Resdidual value: $12,743.25 Money factor: .00093 Monthly payment (including tax): $287 (tax is 5.5%, included)
W/ 15K miles a year payment goes up to $304.
Please let me know if this is a good deal. Is there anything else I can squeeze out of this? How much lower cap cost can I hope for after negotiating? Thanks!
It's hard to compare 3 yr vs 2 yr as residuals and money factors change, but thanx for your info!
However, after several e-mails to different dealers I have been able to get a quote with same terms & same payment but with no acquisition fee up front. One dealer already built it into the lease for me WITHOUT increasing the payments - so I just saved $600 from my original estimate. Getting better!
Comments
1) the msrp of the car (not really needed, but am curious)
2) the cap cost of the car (the "selling" price)-- i assume you negotiated this.
3) the money factor
4) the residual value of the car.
do you have any of these figures?
I went about this deal backwards, I told the dealer that I wanted to keep payments low and didn't negotiate the price (I assume it is ~$20,230). I wanted to try to piggy back off of VW's current lease special on the manual Jetta. I read somewhere that when a lease deal is good, you cannot negotiate the price.
Anyways, I got the money factor of .00153 with a residual factor of 47% from another dealer. The other dealer actually quoted me this from a Passat. Would the money factor and residual be the same from dealer to dealer? Again, I went about this all backwards I think. I am screwed aren't I??? Any other gotcha's that this noobie should be aware of? Any "hidden" incentives that I can use? If I had an Audi, would I qualify for VW return customer rebate? Thanks again!
Residual Value (20,860 * .47) = 9804.2
Difference (20,860 - 9804.2) = 11,056
Monthly Payments (11,056 / 42) = 263.2333333
Residual + Cap = 30,664
Monthly Finance (30,664 * .00153) = 46.916226
Total Monthly Pay = 310.1495593
To me it seems that my backward logic yields a pretty good deal, but again I don't know for sure as I am new to this game. I am making some big assumptions here by using the money factor and residual % provided to me for a Passat and from another dealer.
I guess ideally I would like to match the current national offer for the Jetta Value Edition (manual trans).
Which, would also result in a lower payment...
Either way, MF and residuals can be far different between models....
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Bottom line is you are not "ahead payments", you are just paying about $100 ($20 per $1,000 down) less per month because of the $$ you put down.
As far as your guote "At the end of the lease terms I will have spent the same amount of money regardless of making the down payment or not." If you put down $5000 you will most likely be paying about $100 less per month. Therefore, if you lease for a 36 month term that equates to about $3,600 ($100 x 36) in a reduction of your monthly payments. To me, you will save about $1,400 if you keep the $5,000 in your pocket and not in the dealers bank.
Someone correct me if I am wrong here in my thinking!!!
Nevertheless, in this case my point still stands. Putting $5K down on a lease is not a smart financial strategy.
You said:
"The $20 per $1000 is for a regular purchase at 60 months not a lease." This statement for a purchase is very misleading. If you are purchasing a car, the amount per $1,000 completely depends on the interest rate involved. The lower the interest rate the more car you get for your money (i.e.: Finance for 60mo payback is $15 per $1,000). Again, in a purchase its all about the ineterst rate.
For a 36 mo. lease, $1000 down will lower the payment by around $30/mo. (in round numbers)
24 mo. lease: $40/mo.
48 mo. lease: $20/mo.
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I'm wondering why the Jetta has a higher rate (.00135) than the Passat (0.00099) at the moment. Is this a good deal?
I've been offered a Jetta 2.0T automatic, with package 1 and navigation for $27,093 (MSRP 28955.00). The residual is .53 ($15346.15). For 36 months at 12,000 miles per year. The total cash up front is $2428.31. (sec deposit $425, doc fee 99.00, cash 1600, title 243, taxes 1359.6) leading to monthly payments of $403.31.
Personally I'm keener on the Passat, but my wife likes the automatic climate controls, power seats, and the nav system on the Jetta (a Passat with nav but no power seats or auto aac is $388 per month).
I can get same car if I buy it, for 25,635, but I'm not sure I'd like it to keep it longer than 3 years because I find the ride a bit stiff and bumpy (and we may have kids who require a bigger car by then). I may kill off the nav system which should drop payments down to $377 per month.
Thoughts anyone? Lease or buy? Is this a good deal?
Base MSRP 23790
Factory Options: 3200.00 (package 2)
Destination Charge: 630.00
Dealer Adjustment: -2183.00
Total Sales Price: 25437.00
(bringing vehicle to invoice)
Lease Details: 3 years, 10K, 0 Down.
Residual value: 16142.00
Money Factor: .00119
Monthly Payment before tax: 307.66
as an aside, and this is just a general statement, i don't quite understand a 10000 mile lease-- seems like you don't really have enough miles to really enjoy the car. seems you can't use the car for any kind of vacation.
As for the increase I did not figure it out. It was more an honesty thing for me. Wondering what the "real" money factor is.
Although this is my first posting, I must thank you as I have leased several cars using this forum. I have been shopping for a car for my son. A few days ago we settled on a Jetta and negotiated a great purchase price ($250) under invoice. With the July lease money it seemed the dealership was making a fair - small profit of $ 500. The problem is, I never put a deposit down and due to work issues was not able to get back to the dealership until today. The car my son wanted was sold - In 100 degree weather we shopped this very large lot and unfortuantely was not able to find color combo with eqipment that we wanted. I know that shopping near the end of the month often yields the best deal. But I am a firm believer that you should get what you want - especially when buying an item such as car. With all this being said - we decided to have the dealership locate the combo that we wanted. ( We agreed to pay the extra cost to obtain the car.) Although the sales manager told me he was uncertain how the August VW residuals and money factors would fair - he assured me that he would give me the same invoice deal on the sale of the car once it was on the lot.
Now this is where I need your help - would you please let me know as soon as possible the following:
2006 VW Jetta 2.5
Residuals, Money Factors, and VW Lease Money available for both a 24 and a 36 month lease with 12,000 per year milage.
I think I have this leasing concept down THANKS to you and Edmunds.com. I hope by waiting I did'nt risk the deal I had negotiated.
Thanks Again !
Do you know if Volskwagen Credit has any "bank fee" ?.... I met that with Honda Finance two years ago....
What about the gap insurance?.... is already included in the MF or we have to pay separated for it ?
Just curious, what was/will be your lease cost (e.g., monthly cost, cap cost, term, etc.)? I want to see how it compares to mine.
The Carsdirect price today for that car is $20,762 and the destination charge for any VW is 630. Assuming a bank fee of 575 (I think I saw that somewhere but I'm not sure about it) and 200 more for title and registration the Cap cost is going to be 21537.
Using the July numbers for a 36 months, 12K miles/year (MF= 0.001380 and RV=54%) my calculations are a Residual=12254.22 and Rental=1687.65 leading to a monthly payment (pretax) of $304.49
24 Month, 12K lease.
Residual, Moneyfactor and VW lease money incentive available for the month of August.
THANKS !!
Car_man
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Let's taka a look at the selling price that you were quoted for the Jetta that you want to lease. The dealer invoice price for a 2006 VW Jetta 2.0T Sedan with automatic, Package 1, and navigation is $26,693. You were quoted a selling price of $27,093, which is $500 over invoice. Normally this would be a pretty good price, but Volkswagen is currently providing $1,000 lease cash on 2006 Jetta 2.0T models. This means that the price you were quoted is more like $1,400 over invoice, which isn't great. I would try to negotiate a lower selling price if I was in your situation.
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Thanks again!
Car_man
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Also, I've seen mention of lease incentives for other jetta models, but not the GLI, is there cash available?
Thanks.
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I'm glad I stumbled across this forum! I was offered a 24 month lease on a '06 Jetta (package 2) with 15,000 miles per year. Is this a good deal or should I shop around? Thanks.
Does this sound like a good deal?
What should the money factor be on this type of lease?
Thanks!
Is there any benefit of getting a 3 year lease versus a 4 year lease?
W/ regards to 3 vs. 4 yr lease, it is totally your preference. I don't believe there really is any benefit. Just MAKE sure you don't go beyond 4 yrs as I believe the warrantee expires after that. HTH!
BTW - Isn't the residual 55%?
terms: 48mo/12k lease of
2006 2.5 jetta package 1
trade in: 02 grand prix gt (kbb $7500, payoff $9500 = neg equity $2000) zero $ down.
i know there are a lot of variables here, but what is "fair" or a good deal for ME. the salesman has already apparently lied about the $750 lease cash, assuming it is currently valid, so i dont trust the invoice numbers they were showing me either. can you break this down? just an outright buy with ignoring the trade in would be helpful at this point. thanks.
also, how does one prove the existence of lease cash if the dealership doesnt acknowledge it?
Is this a good deal? What kind of lease cash is offered for August on the 2.5? And why does the total amount of payments I would make, plus the residual, add up to WAY more than the price quoted, were I to choose to buy it?
I've never leased before and don't want to get hosed on this -any help is appreciated - THANKS!
from reading these threads, this seems unreal! that is 12K and with $3,000 down, although I see here that putting down in not wise, however, we need to keep monthly payments down (how much would it increase each month with NO money down?)
thanks for any help
Can you post what the current terms are for a 06 jetta gli for 48mos@15K/mo.
I am in a unique situation where I already signed my lease, but they put the wrong VIN on my contract. So they want me to resign with the correct vehicle, but I think all the terms they told me were based on the other car (the car I wanted in the first place)
so at a minimum, I get to ask them for all the numbers they put in the terms before I resign, so I can make sure I am getting the best deal now!
thanks!
Did you add around $1400 to the cap cost for tax?
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I'd consider buying, if I lived in either of those two states...
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This is my first lease and reading up the most I can so I don't get wronged on my contract. Thanks for any info!
Original MSRP: $19,605
Leasing Cap cost:$18,585
Down payment: $1,013 (includes first month's payment, DOT fees for title & plates and aquisition fee of $575). No cap cost reduction
Resdidual value: $12,743.25
Money factor: .00093
Monthly payment (including tax): $287 (tax is 5.5%, included)
W/ 15K miles a year payment goes up to $304.
Please let me know if this is a good deal. Is there anything else I can squeeze out of this? How much lower cap cost can I hope for after negotiating? Thanks!
However, after several e-mails to different dealers I have been able to get a quote with same terms & same payment but with no acquisition fee up front. One dealer already built it into the lease for me WITHOUT increasing the payments - so I just saved $600 from my original estimate. Getting better!