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Smart Shopper Smart Shopper-Archives Lease Questions - Ask Here 
23872 messages, Last post on Sep 20, 2005 at 8:08 AM
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Car Man - I posted a question a few weeks back and nobody has responded. Perhaps you could offer your opinion on my lease deal. The posting is #96 Thanks in advance! |
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After reading a few months worth of posts I was all excited to go grab myself a Saab 9-5 wagon with the great 0.0005 money factor. Turns out the deals ended in Sept. My local dealer has about 5 of the 2000s and I can't get into one because the promotion is over. Oh Well. If anyone knows of any new deals coming on the 9-5 please let me know. Thanks. |
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Hi Floridian, interesting question. If you are financing your current vehicle and trade it in to a dealership that then pays off your note, I believe that you will still receive the normal tax benefit of having that vehicle's value deducted from the purchase price of your new one (in states that allow this practice of course). I am not positive about this though, and tax laws do vary from state to state. Perhaps you will be able to find a more specific answer to your question by visiting the Web site for the Florida Department of Revenue. Use the following link to go to that site: State of Florida Department of Revenue. Even if a dealership purchases your off-lease vehicle, I believe that they will still have to pay any sort of disposition, lease-end fee, or purchase option fee that you would have been responsible for had you purchased this vehicle for yourself at the end of its term. Having said that, whether or not this fee gets passed on to you will probably depend upon the specific dealership that you visit. If there is enough profit baked into your deal there is probably a very good chance that they will not pass any charges on to you, but if you have a really skinny deal then they may hit you up for any additional money. Car_Man Smart Shoppers / FWI Co-Host |
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Hi Mike. Given the fact that you leased this car all the way back in May, I am sorry to say that it is difficult for me to say exactly how good a deal you got. For instance, if you leased a base 2000 VW GTI GLX last month for $500 over invoice you would probably been able to get a pre-tax 36 month, 12,000 mile per year lease payment of slightly over $300 per month without any money down. However, the monthly lease payment would be significantly higher on the same exact vehicle this month. I personally feel as though your lease payments are a little on the high side. Unfortunately, when you agreed to lease this car you signed a legally binding contract to pay the bank that you are going through a certain amount of money over a specific period of time. They are going to want all, or at lease a significant portion of the money that you are obligated to pay them even if you want out of this deal at this point. So there really is not any inexpensive way for you to get out of this lease. Car_Man Smart Shoppers / FWI Co-Host |
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| carman, what money factor (% rate) am i looking at on a 2001 vw golf gl or 2001 jetta gl? thanks ... headed to the dealer this eve so i hope you get this in time. thinking 48 month / 15k or traditional for 60 months .... any recommendations. | |
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Hi projectzx3. I'm here for you. Hopefully you haven't left for the dealership, yet. Let me begin by saying that I typically advise consumers against leasing vehicles for terms as long as 48 or 60 months for a number of reasons, the main one being that your warranty will have long since expired by the time that you have to turn in your car. As a result you will have to pay for any necessary repairs to your vehicle prior to returning it at lease end. This can become quite expensive. Another problem with leasing for such a long term is that long leases typically have higher interest rates than shorter ones do. If you choose to lease through a manufacturers' captive finance company they will frequently provide supported low interest rates for 24 or 36 month terms. Even if the vehicle that you are leasing is not supported most many manufacturers' standard rates increase as the length of your lease does. In answer to your specific question, Volkswagen Credit does not currently have any supported lease money factors available on any of its 2001 models yet. So if you choose to lease either a Jetta GL or a Golf GL through them at this time you will have to pay their standard lease money factors of .00340 for 48 months or .00355 for 60 months. These rates are slightly higher than VW Credit's standard rate of .00335 for up to 39 month terms. The 48 mo. 15,000 mi/yr residuals for the 2001 Jetta & Golf GL are both 51% and the 60 mo. 12,000 mi/yr residuals are both 42%. Car_Man Smart Shoppers / FWI Co-Host |
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thanks for all that info! here's what happened: the 2001 golf gl automatic was not available anywhere so i placed an order. salesman said it will most likely be 8 weeks give or take a little. here's the numbers for you to evaluate. i think i did well but be honest with me. 01 golf gl options: automatic , vw alloy wheels (895.00) msrp= 17295. capitalized cost= 16670. destination= 525. total= 17195. i gave them a 500.00 deposit (not reflected above)to place the order which will be applied as a down payment when my car comes in and i finalize. i was told at that time i will see the finance person at the dealership. based on your experiences does this seem ok? what type of monthly payment could i expect with 36,39 or 48 month lease 15k per year. id like an option to buy at the end. or should i just finance the car for 60 months (traditional financing). thanks bunches!!  |
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| its me carman ... i just noticed i was on under my sons log in name. thanks | |
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How could you possibly not be better off by financing a car. At the end of five years you will own a car and can continue to keep it or sell. Presumably if you have chosen a good car, it still has value. If you lease it at the end of 48 months you are left with nothing. Unless you have a real need to own a new car every 2 - 3 years, how does leasing ever make economic sense. I've always purchased cars that were highly rated and never felt that I had any reason to unload them after the warranty - why would anyone want a car that is unreliable after 36,000 miles? The cost of normal maintenance is well below the cost of monthly payments on a newer model. |
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What is residual and mf for this car in Northern California? Looking for 36 and 48m/15k and additional per mile charge. Thanks! |
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