Price estimate was $100 more than my father's estimate, and higher than all my calculations
bsmerbeck
Member Posts: 9
Hello, I'm wondering if I could get an opinion on a lease I'm trying to procure on a 2020 Volkswagen Jetta. I went to a dealership to look at the vehicle, and found myself happy with both the Jetta S and SE trims. The estimate the dealership gave me was significantly higher than I thought it would be. Following this, my father who lives in another state went to his local dealership to get a price estimate. His price estimate was lower than the price I was shown.
Here is what I was shown. Looking for a 39mo lease, 10k miles, credit is good.
2020 Volkswagen Jetta SE
MSRP - $24,034
Options (splash guards & wheel locks): $599
Dealer incentive: $1,400
Total Purchase $23233
Doc Fee: $400
Non Tax Fee: $920.50
Balance: $24,553.50
39mo, 0 down: $376-$411
39mo, $1000 down: $347-$382
My father went to get an estimate on a Jetta SE, cold weather package and some additional options
2020 Volkswagen Jetta SE
MSRP - $22645
Options:
cold weather: $500
Auto dimming rearview: $325
Monster mats: $235
Prepaid scheduled maintenance 30k miles: $125\
First aid & roadside assistance: $99
(unsure on fees, taxes, etc)
39 month lease, $1000 down: $279/mo
My confusion is in that when looking at the equation for lease, and having been given a residual and money factor for my zip, I consistently work out a monthly price far lower. MF + Residual I received from this forum are.
MF: .0004
Residual: 54%
Using car gurus, an identical 2020 Jetta SE is selling for approx. $22,250 in my area ($2604 difference). I would be able to get the new graduate discount, as well as a $1,400 dealer incentive. I worked out then:
Capitalized cost: (22245 - (500) - (1400)) - (24849 * .54) = (20345 - 13418.46) = 6926.54
Lease Cost: 6926.54 / 39 = 177.60
Interest: ((20345 + 24849) * .0004) = 18.84
Pre-Tax: 177.60 + 13.51 = 196.44
Total with tax: $210.19
Even using the MSRP as the starting price for capitalized cost, it works to around $280. So I'm thinking the estimate my father got was based on MSRP, and my estimate was just them trying to make a bigger buck out of the lease.
Am I missing something with the calculation? I wanted to simply call them and ask that based on my research of MF and Residual, if they can offer me a capitalized cost of $22,000 before incentives then I'll sign papers that day.
Here is what I was shown. Looking for a 39mo lease, 10k miles, credit is good.
2020 Volkswagen Jetta SE
MSRP - $24,034
Options (splash guards & wheel locks): $599
Dealer incentive: $1,400
Total Purchase $23233
Doc Fee: $400
Non Tax Fee: $920.50
Balance: $24,553.50
39mo, 0 down: $376-$411
39mo, $1000 down: $347-$382
My father went to get an estimate on a Jetta SE, cold weather package and some additional options
2020 Volkswagen Jetta SE
MSRP - $22645
Options:
cold weather: $500
Auto dimming rearview: $325
Monster mats: $235
Prepaid scheduled maintenance 30k miles: $125\
First aid & roadside assistance: $99
(unsure on fees, taxes, etc)
39 month lease, $1000 down: $279/mo
My confusion is in that when looking at the equation for lease, and having been given a residual and money factor for my zip, I consistently work out a monthly price far lower. MF + Residual I received from this forum are.
MF: .0004
Residual: 54%
Using car gurus, an identical 2020 Jetta SE is selling for approx. $22,250 in my area ($2604 difference). I would be able to get the new graduate discount, as well as a $1,400 dealer incentive. I worked out then:
Capitalized cost: (22245 - (500) - (1400)) - (24849 * .54) = (20345 - 13418.46) = 6926.54
Lease Cost: 6926.54 / 39 = 177.60
Interest: ((20345 + 24849) * .0004) = 18.84
Pre-Tax: 177.60 + 13.51 = 196.44
Total with tax: $210.19
Even using the MSRP as the starting price for capitalized cost, it works to around $280. So I'm thinking the estimate my father got was based on MSRP, and my estimate was just them trying to make a bigger buck out of the lease.
Am I missing something with the calculation? I wanted to simply call them and ask that based on my research of MF and Residual, if they can offer me a capitalized cost of $22,000 before incentives then I'll sign papers that day.
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Comments
Understand that prices you see on-line may include purchase incentives, which aren't valid for a lease.
Do you have copies of the lease worksheets you and your father received?
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