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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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| 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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| I asked about this subject YESTERDAY 9am. WHATS the deal I still havent seen a response to my question or my question even posted yet! HOw long is the waiting process for my question to be posted???? GUCCI4 | |
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i agree a 60 month lease makes no sense to me. when i mentioned 60 months i meant traditional financing. but a 48 month lease can make sense. first of all i can minimize my upfront cash outlay and keep my money in my investments. second, if a person finances car 'x' for five years instead of leasing for 48 months, the monthly payment will be higher ( in my case approx 100/mo) for the 48 months and the additional 12. i do all city driving and avg 15k miles/yr ... city driving is tough on a car. trust me i know what i am doing. but carman knows more!!! thats why i ask ...carman please lets not get lost here. answer my questions about my deal when you get a chance. i know you are busy.
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Hi again projectzx3. Given the limited dealer margin on the VW Golf, I think that you got a fair price on the car that you ordered. Eight weeks is a very long time in the world of leasing. The monthly lease payments on a particular vehicle can vary tremendously over this long a time. So it is very difficult for me to say how much this car will cost you to lease when it finally arrives at the dealership. Currently, there really is not any advantage to leasing this car because VW is not offering special lease money factors on any 2001 models yet. Down the road, however, they may introduce some support on this car that makes leasing one worth your while. Car_Man Smart Shoppers / FWI Co-Host |
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Hi Bryan. I just saw the Chrysler Financial lease program not that long ago. Over the past several years, DaimlerChrysler Corp. has experienced tremendous financial losses because of CFC's leasing business. As a result, they really have done away with lease money factor and residual value support on the majority of their vehicles. In some instances, they have replaced these supported money factors and residuals with lease cash. Unfortunately, the Jeep Wrangler is not one of these cases. Traditionally, Chrysler has not really had to provide much support on the Wrangler. If you lease one through Chrysler Financial right now, you would have to pay their standard lease money factors of .00340 for 36 & 48 month terms. However, CFC does have a slightly lower 39 month factor of .00325 available right now. This is probably the best term to lease through at this point. The 15,000 mi/yr 36, 39, & 48 month residual values for this truck are 54%, 53%, & 48% respectively. If you want to purchase additional mileage at lease inception you can do so through Chrysler Financial for $0.12 per mile. Given the fact that they have tremendous regional variation, Toyota's lease programs are a little more difficult to keep track of. I am sorry to say that I am not aware of any special lease promotions on the Pre-Runner Crew Cab at this time, but it is possible that there may be one in your neck of the woods. Car_Man Smart Shoppers / FWI Co-Host |
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