2013 and earlier Volkswagen Jetta Lease Questions

fractal99 · August 2006

Hi all -- this forum has been quite helpful and informative. I have a question for Car_man or Xyfdx (or others who know)

I leased a jetta a few days ago. Was this an 'insane deal' (as the salesperson, of course, said)?

Specs:
2006 2.0T Jetta
Automatic
Option package #2
DVD Navigation
Rear side airbags

Price info:
MSRP: 30,115 (from the car sticker. Base price listed as 23,590)
Agreed upon value/cap cost: 27,406

Additional fees:
Acq. fee: 575
License, title, reg fee: 115
Documentation Fee (bleh): 175

Lease info:
36 month, 12k mi/yr
Up front: $1000 (covers 1st month)
Monthly, w/o tax: $385
Monthly, w/ tax: $404

So, is this a crazy insane deal? I thought it was fair, rather than insane. (Should that August $1000 dealer incentive apply to this car?) Sales guy said he couldn't go any lower on the price. The lease works out based on lease calculators, w/ the 53% residual, and the .00135 money factor.

Thanks!
-e.

CarMan@Edmunds · September 2006

Welcome jdjetta. It is difficult for me to tell if this is a good deal without knowing the monthly payment that you were quoted for this car. It also would be helpful if you were able to provide me with its full MSRP and approximate selling price. Let me know and I'll tell you what I think.

Car_man
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CarMan@Edmunds · September 2006

Hello ltaback. What is this car's full MSRP? I ask because it will show me how much of a discount you are being given and it will enable me to use VW Credit's actual lease program to estimate what your monthly payment should be. Let me know and I'll tell you what I think.

As far as Volkswagen's lease program for this car goes, VW Credit's current buy rate lease money factor and residual value for a 48 month lease of a 2006 Jetta 2.5 (not the Value Edition model) with 15,000 miles per year are .00189 and 45%, respectively.

Car_man
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CarMan@Edmunds · September 2006

Hi fillmore2. You never mentioned the selling price or MSRP of the car that you are interested in leasing. These are important numbers for you as a consumer to know for two reasons. First, the selling prices of leased vehicles can be negotiated, just as if you were paying cash for them. Without knowing this car's selling price in relation to its MSRP you don't know how much of a discount you are getting on it. The second reason is that one needs the selling price and MSRP, including the destination charge, of a vehicle to calculate its lease payment. I would be more than happy to give you my opinion of this deal if you let me know what these numbers are.

Volkswagen is still providing $750 lease cash on 2006 Jetta 2.5L models. You don't need to prove that it exists, both you and the dealer know that it definitely does. Either they will share it with you or they won't.

Car_man
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CarMan@Edmunds · September 2006

Hello ironcityali. I am glad that you enjoy this discussion so much. Volkswagen Credit's current buy rate lease money factor and residual value for a 48 month lease of a 2006 Jetta 2.5L (not the Value Edition) with 12,000 miles per year are indeed the .00189 and 47% that you were quoted. Now let's take a look at the price that you were quoted for this car. A base 2006 Volkswagen Jetta 2.5L Sedan (again not the Value Edition) has a spread of around $1,600 between its full MSRP and dealer invoice price. In addition, Volkswagen is currently providing $750 lease cash on this model. This gives us a spread of around $2,350 to play with. The selling price that you were quoted is $1,400 below this car's MSRP. If you are in an area that has a decent level of competition for your business, I personally would not be surprised if you were able to beat this deal by a little. Try stopping by the following discussion to see how much other community members have paid for similar cars lately: "Volkswagen Jetta: Prices Paid & Buying Experience".

For any general questions that you have about leasing, check out the following discussions that are available here at Edmunds.com: 10 Steps to Leasing a New Car and Calculate Your Own Lease Payment.

Car_man
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CarMan@Edmunds · September 2006

Hello lcordes. I would be happy to tell you how much this car's lease payment would increase if you put no money down and to give you my opinion on this deal, but in order for me to do so I need you to provide me with some more information. Specifically, I need to know how long this lease is, this car's MSRP, and its approximate selling price. Let me know and I will tell you what I think and work up a zero down lease for you.

Car_man
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warhub · September 2006

Hi! I'm new to this forum and want to ask a few questions before I venture out to my local VW dealer. I live in Rockland County, New York, just north of NYC. I'm interested in an 06' (or 07' if available) Jetta GLI w/manual transmission with the #2 package, rear spoiler and rear airbags. According to Edmunds the TMV price is about 28,000 on the dot. I wanted to know what the current residual value and money factor is on this car(s)through VW credit (or otherwise) so that I can go into the dealer prepared. If you can provide me with a target monthly payment, assuming 15K miles a year, either a 36 or 39 mo. lease and the taxes rolled into the payment with $0 down that would be ideal. Thanks.

CarMan@Edmunds · September 2006

I'd be happy to estimate what this car's monthly payment should be, lcordes. However in order for me to do so I need you to provide me with its MSRP and approximate selling price.

Car_man
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CarMan@Edmunds · September 2006

Here you go, photoz. Volkswagen Credit's current buy rate lease money factor and residual value for a 48 month lease of a 2006 Jetta GLI with 15,000 miles per year are .00193 and 44%, respectively. When negotiating your lease on this car, keep in mind that Volkswagen is currently providing $500 lease cash on it. Make sure to take this cash into account when negotiating your car's capitalized cost.

Car_man
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anabella24 · September 2006

wanted to know if you could help me out with what is the better deal.

Honda Civic LX 2007

No money out of pocket exept first month payment
MSRP $18,300
Payment $299
Months 48
Miles 12,000
Residual $11,500

Jetta 2006
MSRP $23,300
Payment $301
Months 48
Miles 12,000
Residual $11,500

I dont understand that the monthly payments are the same with such a difference in MSRP. Is one giving a good deal, or is one ripping me off. I went into one Jetta dealership to get that deal, yet went to 4 honda dealerships to get that deal. Please help me because we are going to lease very soon. THank you so much, your forum has been a big help.

CarMan@Edmunds · September 2006

Hi motion500. Volkswagen's lease program for this car varies depending upon how long you lease it for and its mileage allowance. For now I will assume that you are interested in a 36 month lease with 15,000 miles per year. Let me know if you want something different. Volkswagen Credit's current buy rate lease money factor and residual value for a 36 month lease of a 2006 Jetta Value Edition with 15,000 miles per year are .00149 and 53%, respectively. I don't believe that Volkswagen currently has a "Value Edition" for the 2007 Jetta. Its lease program for an otherwise identical lease of an '07 Jetta 2.5L is .00206 and 56%. The numbers for a similar lease on a base '07 Jetta are .00312 and 57%.

When negotiating your lease on the 2006 Jetta Value Edition, make sure to take the $750 lease cash that is currently available on it into account. This money will help you to negotiate an attractive capitalized cost.

Car_man
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CarMan@Edmunds · September 2006

Hi nyurka. The money factor that you were quoted for this car is right in line with Volkswagen Credit's current buy rate for it. This is a good sign because it means that the dealer that you are working with is not trying to mark your car's factor up to add additional hidden back-end profit to your deal. Now let's take a look at this car's price. As you mentioned, the full MSRP for a 2006 Jetta Value Edition with an automatic transmission is $19,605. This car's dealer invoice price is $18,752. At first glance, it appears as though you are getting this car for $167 below dealer invoice. However, Volkswagen is currently providing $750 lease cash on this model. This means that you are actually getting it for $583 over invoice. This is still a very reasonable price for this car. If you have gotten several price quotes on this car from dealers and this is the best that you have seen, I personally don't see any reason not to go for it.

Car_man
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CarMan@Edmunds · September 2006

I'm glad that you find this forum so helpful, fractal99. OK, so you were quoted a selling price of $27,406 on a 2006 Jetta 2.0T that has an MSRP off $30,115. I believe that this car has a spread of just under $2,400 between its full MSRP and dealer invoice price. You are being given a discount of $2,700 on this car. That's probably around $300 under dealer invoice. In reality though, it is around $700 over dealer invoice once the $1,000 lease cash that is currently available on this car is taken into account. That's not a bad price, but you may be able to beat it by a couple hundred dollars if you are in an area that has a decent level of competition and you shop around. You can always stop by the following discussion to see how much other community members have paid for similar cars lately: "Volkswagen Jetta: Prices Paid & Buying Experience". As far as this car's lease program goes, the money factor and residual value that you mentioned are right in line with Volkswagen Credit's current lease program for this car.

Car_man
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CarMan@Edmunds · September 2006

Welcome warhub. Volkswagen Credit's current 36 month, 15,000 mile per year buy rate lease money factor and residual value for a 2006 Jetta GLI are .00143 and 51%, respectively. The numbers for an otherwise identical lease of a 2007 model are .00189 and 54%. I don't believe that these cars' 39 month lease programs are very attractive right now. When negotiating the selling price of an '06 Jetta GLI, make sure to take the $500 lease cash that is currently available on it into account. This cash will help you to negotiate an attractive capitalized cost for your lease. I'd be happy to provide you with target lease payments for the cars that you are considering leasing, but in order for me to do so I need you to provide me with their full MSRPs and either their approximate selling prices or dealer invoice prices.

Car_man
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CarMan@Edmunds · September 2006

Hi anabella24. The reason that these cars' lease payments are very similar even though the Jetta has a much higher MSRP is that Volkswagen is currently providing a decent level of lease support on the 2006 Jetta, but Honda is not providing any support at all on the Civic. The Jetta is definitely the better car to lease right now, in terms of getting the most for your money. The Civic is a nice car too, but its lack of lease support makes it less attractive to lease at this time.

Car_man
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anabella24 · September 2006

Thank you for the advice. Do you think I can get the payment any lower, or would that be getting me no where. Thanks.

warhub · September 2006

I'm a bit sad today... The dealer's numbers essentially matched yours, resulting in a monthly payment of $437 with nothing other than inception fees out of pocket (and he told me he "might" be able to do a little bit better), but the next day they sold the car. He no longer has any 2006 GLI's on his lot and I've called 5 other local dealers and nobody has one in the color or with the equipment that I want (black, dark leather, #2 pkg, spoiler and rear airbages). All have told me that there are basically no more 2006 GLI's around. Furthermore, everyone is telling me that the 2007 GLI is not out yet and nobody seems to have an idea exactly when it's coming! Any clues? Also, I'm being told that when it is released, VW will not have any lease support on it (i.e. no incentives). Is this typical of newly released vehicles or of VW in particular? Any words of inspiration would be appreciated.

wbritt · September 2006

Car_Man
Looking at an 06 Jetta 2.0T. Used your info in your message - money Factor of .00143 and 51% residual. Based on a $25,801 selling price (TMV with options selected - PAS Pkge #1 w Sirius & Graphite Blue). I come up with payments for a 36 month lease of $457.66 - 15K per year and includes $500 incentive. Does this seem right to you? Guess I was hoping the residual was better

WWB

ashjul · September 2006

Does anyone have the current money factor rates and residuals for 07 base model Jetta?

annajetta · September 2006

Hi I got the below lease price, ( I am looking in NY/NJ dealers)I understand there is some money offered form VW as a dealer lease incentive also ( not sure of the amount)

MSRP $23,595 Invoice $21,852
24 month lease
12K per year
1800K down
$220 per month w/ out taxes

Is this a good deal for 24 months and what is the money factor that they used here or the currect money factor for 24 month leases on 2006's.
Can I possibly get this lease price down even lower !

Thanks Anna

annajetta · September 2006

HI I got a lease price for a 2006 2.5 Jetta Package 1
MSRP $23,874

For 24 month lease $220 per month b/f taxes
12,000 miles per year
1,800 down payment

Does this sound like a good price, What is the current lease incentive $500 from VW.

Thanks This is in New York, I was hopeing for an even better deal

Anna

wvdihrd · September 2006

Hi - My wife wants a new Jetta. We have a 2004 Chevy Trailblazer XLT with 58,000 miles on it. We owe like $20,000 on the thing - they are only offering $13,000 for trade. However - they made us a lease offer like this - they take the Trailblazer and pay it off - we put $1000.00 down and then have a lease at approximately $530.00 a month for 48 months with 15,000 miles a year. Something doesn't sound right here. We like it cause we get out from under the massive debt from the Chevy. The payment is about the same as we are playing now so that is not a concern. We just aren't sure if it is a decent deal. We are also concerned because the salesman says that we pay that for 4 years, and if no overages on the mileage, we simply turn the car in and walk away with no additional payments. Too good to be true?

benzoservceguy · September 2006

A ? for car-man or any1 else:

How too good to be true is the current lease promotion VW has on a Value Edition Jetta for $209.00/mo?

Granted, you need to put down close to 2K ($1,954) which includes 1st mo pay plus acquision fee of $575 and down payment (cap cost reduction?) of $1,170.

This car (very basic with manual tranz) is all we need for our older 18 yo daughter as her 1st car.

How much will the REAL payment be if we live in SO CAL with a tax rate of 8.25%?

If we up the mileage to 15K (instead of the 12/k per yr)how much more will it cost?

And lastly, what is the actual selling price of the car, which money factor are they using???
(both wife & I have 730+ FICO)

AND HOW DO THEY DO IT? Are we getting a raw deal or is it legit?

THANKX for any help!!!

nyurka · September 2006

I just leased 2006 VW Jetta Value Edition automatic - the advertised deal is perfectly legit and you can haggle over price to no end - I got mine for $17,900+575 acq. cost., which is below invoice and $1000 off where I started the bargaining. There is a $750 lease cash on this, you need to figure this into your numbers. So negotiate the actual selling price - it does not have to be fixed for a lease. I also told them I will pay nothing down and that was ok - so you don't have to put the downpayment.
Money factor should be 0.00093 or 2.23% (nicely subsidized deal). Your real payment to start with is this 209 + 8.25% of the 209 if you do choose to pay $2K down - but I bet you can get the price down - and on a 24 mo lease this will have a visible effect on payments. In other words, the figure is quite real, just need to pay taxes.

15K miles will cost you 7c a mile worked into payments - effect for me was $15/mo more. My contract also says any extra miles cost 12c a mile.

How do they do it? This is one of the lease specials, where the manufacturer is financing leases at a much lower rate, plus the car is not selling hot anymore, so dealers are willing to negotiate. But make sure you do negotiate to get a good deal out of this.

fish8 · September 2006

What about that deal sounds too good to be true? $530 per month for that car is VERY high. But, you have $7,000 in negative equity built into the price of the car. So, if you had no negative equity you per month cost would be about $140 lower. Which still sounds like allot per month for that car.

You don't say what model Jetta you are looking at.

bethl · September 2006

Hi Car Man-

This is what I was offered on a 2006 Jetta 2.0T - is this an ok deal? I live in NC.

2006 Jetta 2.0T automatic
selling price $22,000
lease term: 24 months
money factor: .00072
no money down required
monthly payment of $229

also

2006 Jetta Value automatic
selling price: $18,000
lease term: 24 months
money factor: .00079
no money down required
monthly payment: $200

Thanks

wvdihrd · September 2006

I thought so too! It is a 2006 Jetta 2.5 with package 2. It is a 4 year lease with 15,000 miles per year. 1,000 down plus first month lease. We do have $7,000 in negative equity too. Help....

tedbierman31 · September 2006

Hi,

I am new to leasing and had severla questions before we signed the paper work!!

Background: the car we are looking at is a 2006 Jetta.

MSRP: 26,408.00.
12000k yr
Lease is for: 48 months
warranty 4 years/50k (standard. im guessing?)
engine: 2.5L/5 cylinder
package 2-all the bells and whistles
payments: $325.00 w/2500 down

does this sound like a good deal? Do I need to find out the invoice price for you? Is there any 'dickering' with the
final price when you lease? Do we really need anything down
for lease approval? (our credit is not the b est (like 650).

Would it be better to put down more like a thousand and even though it may be another $30/month use the remainder to
pay on the first 5-6 months of payments?

Do Volkswagon's depreciate less than most cars?

All other advice would be greatly appreciated???
thanks so much in advance....we are heading over tonight
to look at a few cars so all feedback is welcomed ASAP!!!

Regards,

Ted Bierman

23/33

1500/48

fish8 · September 2006

Those deals sound Spectacular!!!! Almost too good to be true!

Good Job!

tedbierman31 · September 2006

This is an add-n question to the above:

With the above information, is there anyway for you to use Jetta's actual lease program to give me an idea of what is a legitimate lease payment???

also a money factor would be good to know?

thanks nuch

moracity · September 2006

Did you compare that to financing? It seems strange to lease a car for that long. You might as well finance for 60 months. Leasing for more than 2 years is never a good deal for the consumer. You should never put money down on a lease, except to cover taxes.

You may also want to look for certified used 2006 Jettas. They actually do exist and are several thousand dollars cheaper than your lease MSRP. If you can come up with enough down to get to 20k financed, at 60 months, that should be around 350 depending on your APR.

48 months is a LONG time for a lease. The longer you have the car, the more wear and tear and dings...and the higher the chance that you'll end up forking more money over at turn-in.

trainnut · September 2006

When I first discovered this site back in August, I had been looking at leasing a 2006 2.5 Jetta. The numbers I had gotten from several dealers in the Dallas area were in the $375-$380 per month range for a 48 month lease. This past Saturday I leased a 2007 2.5 Jetta automatic with package 1 and a sunroof. The MSRP for this car was $22,695; the price I negotiated was $21,000 even. To that was added $1096 [the balance owed on a 2003 GTI that appraised for $13,000]; a $575 acquisition fee; sales tax of $488 [as you told me, taxes are paid up-front in Texas]; license and title fees of $176, for a total of $2347. The money factor applied was .00244 and residual was 48%. I put nothing down except the first month's payment The monthly payment ended up being $343.83. Interestingly, when I plugged these numbers into an on-line lease calculator, they came out to the penny. Is this as good a deal as you guys in other states have gotten? Probably not. Is it a good deal for someone in Texas? I think so. And, so far as the desirability of leasing for 48 months, why not? The car is under full warranty for that period; you can always move into another VW early, and generally can find a dealer willing to help you move into another make as easily. The dealership I ended up using was Autobahn in Ft. Worth. Outstanding people! trainnut

jerseyjoe83 · September 2006

First I wanted to thank everyone- especially car man for all the awesome info i found on this board.

I am located in NJ and looking to lease an '06 Jetta, pkg 2 xm with leather,for 36 months at 15000/yr and was wondering what I could expect in the way of monthly payments putting 4000 down- I would hopefully like to be able to keep the monthly in the mid- 2's, and want to be knowledgeable with current numbers before going to the dealer. Thanks in advance

hsp · September 2006

Can anyone review my lease deal?

Jetta 2.5L with manual tranny (Silver) no option.
MSRP:20,905
sale price:19,104
MF:0.00138
Term:36 months with 15k miles
Monthly pay: $0 down and $270/month
Buyout price: $10875
Is it a good deal or I can get better if I shop around.
Sales person told me lease deal will be changed for October.
Will it be worse?
Thanks,

CarMan@Edmunds · October 2006

You're very welcome, anabella24. It is difficult for me to say whether you will be able to get a lower lease payment on this car because you never mentioned its selling price. Always remember that the selling prices of leased vehicles are negotiable, just as if you were paying cash for or financing them. Negotiate as low a selling price as possible on this car and the have the dealer that you are working with use it to calculate its lease payment.

Car_man
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CarMan@Edmunds · October 2006

I'm sorry to hear that the car you wanted was sold, warhub. Unfortunately what you were told is right, Volkswagen is not providing any sort of lease support on the 2007 GTI right now. As a result, its money factor jumps to around .00312. I wish that I had better news for you. If you can afford to wait to get your new vehicle, I suspect that Volkswagen will eventually introduce lease support on the 2007 GTI within the next couple of months.

Car_man
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CarMan@Edmunds · October 2006

Hey wbritt. You posted this car's selling price, but you never mentioned its MSRP. I need both numbers to estimate what its lease payment should be. Let me know and I'll crunch some numbers.

Car_man
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CarMan@Edmunds · October 2006

Hi ashjul. this car's lease program varies depending upon how long you lease it for and its mileage allowance. For now I will assume that you are interested in a 36 month lease with 15,000 miles per year. Let me know if you want something different. Volkswagen Credit's current buy rate lease money factor and residual value for a 36 month lease of a 2007 Jetta 2.0T with 15,000 miles per year are .00189 and 55%, respectively.

Car_man
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CarMan@Edmunds · October 2006

You're right Anna. Volkswagen is currently providing dealers with $500 lease cash on '06 Jetta GLI, $750 on Jetta 2.5L, and $1,000 on Jetta 2.0T models. Dealer invoice is a pretty good price for this car. It's a great price if you can get the dealer that you are working with to give you this car for dealer invoice and then subtract the available lease cash.

I notice that you are considering making an $1,800 down payment on this lease. I always advise community members not to make capitalized cost reductions on leased vehicles. The main reason why I advise against this is that if your leased vehicle is totaled in an accident or stolen and never recovered, your down payment essentially disappears. You can lease any vehicle that you want and only have to pay its first month's payment, security deposit, and acquisition fee at lease signing.

This car's lease program varies by trim level. For now I will assume that you are interested in a 2006 Jetta 2.5L. Let me know if you want something different. VW Credit's current 24 month, 12,000 mile per year buy rate lease money factor and residual value for the 2006 Jetta 2.5L are .00079 and 62%, respectively.

Car_man
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CarMan@Edmunds · October 2006

Hi wvdihrd. Your least expensive option at this point would be to wait until you are less upside down on your Trailblazer to get something new. If for some reason you can't do this, it would be in your best interest to look at the new car portion of this deal and your trade separately. This will make things less complicated. Find out the MSRP and selling price that you are being charged for the Jetta that you are interested in and I will give you my thoughts on how good a deal it is.

As far as your lease goes, the salesperson that you spoke with was correct. Assuming that your leased Jetta does not have any excess wear and tear or excess mileage, you just pay its payment each month for the duration of your lease and you can walk away from it at lease-end without paying a dime.

Car_man
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CarMan@Edmunds · October 2006

Hi benzoservceguy. The Jetta Value Edition is a great car for the money. It's lease program is pretty good as well. If you provide me with the full MSRP and selling price of the car that you are interested in for your daughter I would be happy to estimate what its current lease payment should be. I'll even do it with zero down, so you don't have to worry about laying out the capitalized cost reduction at lease signing. I'll assume a mileage allowance of 15,000 miles per year as well. For now I can tell you that Volkswagen Credit's current buy rate lease money factor and residual value for a 36 month lease of a 2006 Jetta Value Edition with 15,000 miles per year are .00149 and 53%.

Car_man
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CarMan@Edmunds · October 2006

Hi bethl. The lease programs that you were quoted for these cars are right in line with Volkswagen Credit's current lease program for them. This is always a good thing. I would be happy to give you my opinion on the selling prices that you were quoted if you provide me with these cars' full MSRPs. When negotiating your deals on these cars, keep in mind that Volkswagen is currently providing $750 lease cash on the '06 Jetta 2.5L and $1,000 on the '06 Jetta 2.0T. This cash will help you to negotiate an attractive capitalized cost for your lease.

Car_man
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CarMan@Edmunds · October 2006

Hello Ted. Since you are new to the world of leasing, you definitely should check out the following informative articles that are available here at Edmunds.com prior to visiting any dealers: 10 Steps to Leasing a New Car and Calculate Your Own Lease Payment.

You never mentioned the selling price of the car that you are interested in leasing. This is an important number for you as a consumer to know for two reasons. First, the selling prices of leased vehicles can be negotiated, just as if you were paying cash for them. Without knowing the price of the car that you want to lease you don't know how good a price you are getting it for. The second reason is that one needs the selling price of a vehicle that they want to lease is that it is necessary to calculate its lease payment. I would be more than happy to give you my opinion of this deal if you let me know what its selling price is.

You definitely do not want to make a down payment when leasing. Consumers who do risk losing their down payments if their vehicle is totaled in an accident or stolen and never recovered during their lease.

Car_man
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CarMan@Edmunds · October 2006

Hey Ted. I would be happy to give you an idea of what this car's lease program is like right now. Volkswagen's lease program for the Jetta varies depending by trim level. For now I will assume that you are interested in the 2006 Jetta 2.5L. Let me know if you want a different model. VW Credit's current buy rate lease money factor and residual value for a 48 month lease of a 2006 Jetta 2.5L (not the Value Edition) with 12,000 miles per year are .00189 and 47%, respectively. Let me know this car's selling price and I can calculate what its lease payment should be using the aforementioned lease program.

Car_man
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CarMan@Edmunds · October 2006

You're very welcome jerseyjoe83. I would be happy to use Volkswagen Credit's actual lease program to calculate what your lease payment should be on this car, but in order for me to do so I need you to provide me with its full MSRP and approximate selling price. For now I can tell you that you definitely should not make a $4,000 down payment when leasing this car. Consumers who make large down payments on leases risk losing them if their vehicles are totaled in an accident or stolen and never recovered during their lease.

Car_man
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CarMan@Edmunds · October 2006

Hello hsp. You never mentioned this, but I assume that you are talking about a 2006 model. The money factor that you were quoted for this car is right in line with Volkswagen Credit's current lease program for it. This is always a good thing. I believe that the dealer invoice price of this car is around $19,300. Volkswagen is currently providing $750 lease cash on it, so the $19,104 that you were quoted for this car is probably around $500 or so over dealer invoice, which is a pretty good price. Both of the main profit centers for dealers on leases, this car's money factor and its selling price, look good to me so if you like the car I personally don't see any reason not to pull the trigger on this deal.

Car_man
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bcblondee · October 2006

Hello, Need help on maybe leasing a 2006 Jetta sedan 2.5L TDI pkg 1, with no money down and maybe a 36-month lease. What should I look for on the numbers? The one that caught my eye has a MSRP 25,044. Thanks bc, Ohio

dpz99 · October 2006

3 days ago my husband leased a 2006 Jetta, 2.5L, auto with pkg 1. Here is the deal
MSRP 23,970
Invoice: 23,500 (might be fooled)
Cashdown, 3500
24 month, 24k
monthly payment: 299.
Buyout price(is it the same with residual value ?): 15300.

We didn't negociate the invoice price. But the residual value is more than 62% (mentioned in some ealier post). If we use 22,000 as invoice and 0.00079,62% as money factor and residual value, the monthly payment is also 299.
I wondered if it is a reasonable deal? or we made fool of ourselves.

But the car is really awesome....

CarMan@Edmunds · October 2006

Hello bcblondee. The two main numbers that you need to focus on when leasing are your car's selling price and the money factor that is being used to calculate its monthly payment. These are the two main profit centers for dealers on leases. The selling prices of leased vehicles are negotiable, just as if you were paying cash for or financing them. Negotiate as low a selling price as you can on the Jetta that you want. You may be able to get an idea of how much you should pay for it right now by visiting the following discussion: "Volkswagen Jetta: Prices Paid & Buying Experience". Once you have gotten an attractive price quote, have the dealer that gave it to you calculate your Jetta's monthly payment using its buy rate lease money factor. Volkswagen Credit's current buy rate lease money factor and residual value for a 36 month lease of a 2006 Jetta Sedan TDI with 15,000 miles per year are .00306 and 54%, respectively. As you can see, this lease program is not very good right now. As many manufacturers do this late in the model year, Volkswagen has pulled the plug on its lease support for 2006 models.

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CarMan@Edmunds · October 2006

Hi dpz99. Dealer invoice was a pretty good price for a 2006 Jetta last month. Getting one for invoice means that the dealer only made the $750 lease cash that was available on this car on your deal. One thing that I wouldn't have done is make such a large down payment on this lease, but doing so is not the end of the world. I normally advise community members against making large down payments on leases because if their leased vehicle is stolen or totaled in an accident their down payment essentially disappears. Other than that, this deal looks pretty good to me. I'm glad that you enjoy your new car.

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