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Prices Paid: Buying & Leasing Experiences Volkswagen Jetta Prices Paid and Buying Experience
484 messages, Last post on Oct 13, 2008 at 5:54 AM
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Replying to: sandpaper (Nov 29, 2007 11:50 pm) The buying experience at Young was amazing. Very upfront with pricing... none of the "monthly payment" shopping I've experienced at other dealers who try to hide the cost of the car and trade in value in a monthly payment. There was no pressure either. On my first visit, they made an offer and I said I wated to shop around. One of the Youngs came over and without any pressure, offered to match any other deal I found, and was sincere and pleasant the whole time. Amazingly, theirs was the best deal anyway! No pressure in the business office either. My credit uion was offering 5% for 72 months...they got me 4.9 for 72 thru VW Credit! They offered extended service and protection plans, and did not give me a hard time or make me feel guilty for declining these extras. I actually almost bought the Teflon paint protection, but didn't because it doesn't offer protection from fading (a MAJOR concern with the Salsa Red exterior). Overall, Young exceeded my expectations for the second time in 16 months (bought my 06 Jetta there, too). |
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So I am interested in this new sign then drive event but haven't the foggiest idea about leasing. On VW.com for the jetta lease special is it a good deal? Also in a lease can I buy it at the end? If not when I give it back caould I get trade in value towards another car or is it just like thanks and hand the keys back in? I know people talk about money factors and residuals so I am also interested in knowing are they also good for this special on vw.com. If not is a lease something you can negotiate? Thank you all for your help.
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Replying to: jbeck1 (Nov 03, 2007 4:01 pm) A money factor of .00278 x 2400 = 6.672% interest. Also, based on your example, it seems that you paid 7% sales tax. You got $3500 for your trade-in, which is a capitalized cost reduction of $3745 (including the savings on tax via your trade-in allowance). I assume that all fees (tag, license, registration, dealer fees, etc.) are included in your $21000 purchase price, so that would equal your "gross capitalized cost". If you leased a Jetta SE automatic with no options that would be a dealer invoice of $20,368 and $20,513 with Jetta mat kit (included in almost every car). The dealer invoice of $20,775 you stated includes some small "padding" for unnecessary dealer fees. However, in order to get $199 + tax using your numbers, your cap. cost including all fees needs to be $20,637 (an additional $363 rebate not mentioned in your example). The lease is calculated based on two factors: 1) Depreciation = adjusted cap. cost - residual value and 2) Rent charge = (adjusted cap cost - residual value) * (money factor) * (lease term). If you analyze the lease itself without including your trade-in, you would have been charged $298.48 + tax = $319.37 per month. I don't know where you got a depreciation figure of $5755 from. Your base depreciation is 40% of $21,000, which is $8400. Subtract from that $3500 for your trade-in and another $363 rebate to make the numbers work. Your net depreciation is actually $4537. ----------------------------------------------------------------------------- I'm not in your state (I'm in Florida), but I was offered yesterday from Gunther Volkswagen a 2008 Jetta SE (automatic transmission) with mat kit - MSRP: $21,660 and invoice of $20,513, $275 (+ tax) per month for 39 months / Cap Cost: $20,875 + tag title and registration of $167.60 / Money Factor: 0.00153 / Residual: 57% My residual is a little lower because I'm going for 15,000 miles a year. At 12,000 miles and 60% residual, I would be paying $259.90 (+ tax). All of my figures here include destination charge and other fees. ------------------------------------------------------------------------------- BTW: you state that you got $500 extra over blue book value (I assume that's $500 over kbb "trade-in" price) for your trade-in. If you sold your trade-in to a private party, you would have made even more on the trade-in that what the dealership paid you (even with their "$500 extra"). If you calculate your lease using my numbers (and with a $3500 trade-in and 60% residual for 12000 miles), you would be paying $164.80 + tax per month. The dealer's true profit on this deal is invoice minus holdback. VW holdback is 2% of BASE MSRP = 2% of $20835 = $416.70. Invoice on 2008 Jetta SE automatic w/ no options is $20368. So, $20,368 - $416.70 = $19,951.30. Add another $185 for tag, title and registration. If the dealer leased a car at their true cost and with a money factor of 0.00153 = 3.67% interest, with your $3500trade-in it would come to $163.40 a month + tax (only $1.40 less per month than my example). Clearly, they would not normally be selling a vehicle close to or at their true cost, so they inflated the value of your trade-in to get you to ignore the high interest rate they were charging. If they bought your trade-in at the $3000 KBB value, you would then pay $178.39 per month + tax. To simplify the example, assume that inflation = 3.67% a year and that the depreciation of 40% over 39 months is accurate. With that in mind, the dealership made a profit of ~$36 a month on you = $1400 over the length of the lease. In reality, they will make an additional profit on selling your trade-in and a 3rd profit when they re-condition and sell your leased car at the end of the lease. An appropriate ballpark profit to give a dealership is between a total of 4% to 8% above their true cost (depending on the popularity of the car). If you ballpark at 5% profit, in your case, you ought to be paying $171.60 per month. I think you can see that it's best to calculate a lease using a worksheet, as a trade-in complicates the picture greatly - altering capitalized cost, rent charge and monthly fees in a confusing manner.
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Replying to: podunk503 (Dec 01, 2007 2:43 pm) Anyways, your questions are way too broad to be answered in a forum like this. Go to www.carbuyingtips.com/lease.htm or to http://www.edmunds.com/advice/leasing/articles/ and read to your hearts content. Brief answers: 1) Do you mean this offer on the vw.com website: Jetta lease special for 2008 Jetta S, based on MSRP of $17,630.00 for a 2008 Jetta 2.5L S with Manual Transmission, excluding title, taxes, options and dealer charges. Monthly payments total $9,462.00. Requires dealer contribution of $145.80, which could affect final negotiated transaction. Purchase option at lease end for $10,401.70. For all offers at lease end lessees responsible for $0.20/mile over 39,000 miles and for damage and excessive wear. Here's the analysis: The dealer contribution of $145.80 gives you a purchase price of $17630 - $145.80 = $17484.20. The current residual for Jetta S is 60%. Working backwards, you get a money factor of 0.0024908 or around 5.98%. This is not a very "special" lease offer. I was just offered (in Florida) a lease on a 2008 Jetta S automatic with mat kit - MSRP: 18,980 / $242 (+ tax) per month for 39 months / Cap Cost: $18,399 / Money Factor: 0.00185 / Residual: 60% for 12000 miles. This is $7 a month cheaper for a Jetta that is $1350 more expensive. 2) You usually can buy a leased car at the end - depends upon the lease contract. 3) You have no equity in a lease, thus no trade-in value. A lease in a car is similar (in a broad sense) to renting an apartment. The leasing company/bank possesses title, not you. 4) Money factor multiplied by 2400 = interest rate. 5) Like anything with car buying, everything is negotiable. Start with lowering the purchase price (AKA "capitalization cost") as much as possible. Then get the best money factor and residual value you can. This will give you the best possible total lease cost and monthly payment structure. Make sure you consider in your calculations all fees paid out of pocket, all fees added to the lease, cost for excess mileage and "disposition fee" (if any) at lease-end. Good luck!
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Replying to: tvfahlberg (Nov 17, 2007 12:39 pm) |
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Replying to: climbonboard (Dec 03, 2007 11:07 am)
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Replying to: nicelittle (Nov 25, 2007 8:32 pm) |
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Replying to: sandpaper (Dec 04, 2007 9:43 pm) You can try, but I don't know how successful you'll be taking the lowest offered money factor and highest offered residual value and trying to make a dealer match both. If your credit rating is above 720 or so, you should have no problem qualifying for the best rates. Use the worksheet on this website (I like it better than Edmunds' worksheet as it is far more detailed) to work the numbers. Also, make sure to ask about "acquisition" or "inception" fees (money down to reduce the cap cost), security deposits, "disposition" fees (money due at lease end when you turn in your car), and charges per mile for excess mileage Make sure to keep your trade-in (if any) out of the negotiations until you've gotten a quote you find acceptable. Only THEN add the trade-in into the picture. |
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| the dealerships lick their chops when people come in to lease. You guys have no clue. | |
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Lcoation: Lewisville VW, TX I am looking at getting a Black color 2008 Jetta SEL with Beige Interior. -extra options include, all weather mats in trunk and car, ipod integration plus all the standard SEL features. MSRP is $23850 Bargained price is $22009+title+tax etc.. Is that a good deal..or should I push my luck. I am also looking to upgrade the rims from the standard thin fix spoke ones. I am going down to the dealership and asking them what my options would be for that. I was told on the phone, they can order them and I can have them installed as they come in. Sounds good. I am looking to finance..hopefully I will get the 2.9% option. Any comments would be nice. Thanks. |
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