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Prices Paid: Buying & Leasing Experiences Volkswagen TDI Models Prices Paid and Buying Experience
831 messages, Last post on Nov 18, 2009 at 9:08 AM
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just got a 2009 TDI sedan w a 3yr lease with 12k miles/yr at san francisco VW dealer. deets are below: platinum gray sunroof rear/side airbags mats package ipod adapter 24993 price + 695 acquisition fee= 25668 gross cap cost 736 paid at closing 441 monthly payments smell like a fair deal? happy new year |
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Replying to: modo4128 (Jan 02, 2009 10:14 am) If your gross cap cost was 25668 and you paid 736, that makes your adjusted cap cost 24932. The VW sheet has the residual in a 36-mo lease at 59% at 15K; at 12K = +2 = 61% (nice high residual) of the MSRP. The 24,993 sounds like the sticker price, before the 650 destination fee. So, I'll assume that was your MSRP and so the residual value is .61 x the 24993= 15,245.73. Subtract the residual from the net/adjusted cap cost to get your Depreciation, which is what you pay in a lease. So, 24932-15,245.73 = 9,686.27 (nice low value) Now, you do not tell us your "money factor" or percentage rate. They are not the same. Regardless, your contract has to spell out the "Rent Charges" (and usually does not spell out the APR or Money Factor) which is how much they charge for financing those 9,686.27 over the 36 months. So, that is added to what gets divided by 36. A money factor has to be multiplied by 2400 to get the real APR. So, 6% APR / 2400 = a money factor of .0025. Since your payments are 441 (including tax), I'll assume a total financed of 441 x 36=15,876. I have no clue what your tax is, so I'll just leave it out for now. So, taking 15,876 minus your 9,687 (rounded up) = about $6,189 (ouch) in rent charges and tax... this amount seems high...let's convert that and see what it turns out in interest rate: Money Factor (trust me, this formula is right: check LeaseGuide.com) = Lease Charge/((net cap cost + residual) x term of 36) = 5689/(24932+9687)x36 = 6189/34619x36=0.0049659 Multiply that by 2400 is your APR = 11.918 % (ouch)...which is high...and explains the high "Rent Charge" or amount added to the depreciation of 9687. As a very rough reference, my last vehicle i leased a Camry for 66 mo's ( I should have never leased anywhere near that long-it was a rape, really, but i was clueless) and the Rent charges over 66 months was only 3008. I paid wayy too much depreciation, another no-no). So, if your real percent rate had been 6% (roughly half), divided by 2400 = a Money Factor of .0025. Using that gives: Rent Charges = .0025 x (24932+9687) x 36 = 3,115.71. That's more like it.That would have made your payments 9687+3116/36= 12803/36 = 355.63 per month..... Again, this does not include taxes, so I know I am off...but 3116 is a lot better than 6189. Sorry to say, but they added about $3073 just in this aspect. Another place to save could have been in the Sales Price. You essentially paid sticker price. Per edmunds, the invoice price was around 23,551. (about 1500 bucks between sticker and invoice) I don't know what the situation in your area, but doing your homework and knowing the numbers on this car allows the buyer to be firm on paying way below sticker, regardless of their assertions. 500 over invoice is not an uncommon "internet" deal if you show them your edmunds numbers. If they have TDI's on the lot, there's no need to pay sticker, regardless of their assertions. There are others more savvy than me here, but what I learned I learned primarily on leasguide.com. I highly recommend you read through it and its free, even without buying the lease Kit. I was a totally different buyer this time around, and they knew it. I ended up with a sweet deal on a purchase (which I posted earlier), but the sales price gets negotiated the same way, lease or buy. (Don't let them tell you different). The lease just works as outlined above, where you pay only the depreciation, plus the rentcharges, computed as above. That's where they get you if they can...btw, the 61% residual is great, because it means a lower depreciation for you...but rent charges is the other variable that can vary, plus of course, the sales price. Sorry to not be able to say better...but it is what it is...minus the tax difference of course... |
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Replying to: mdl3r1 (Jan 02, 2009 6:09 pm) we paid the first month's lease payment at close so there are 35months remaining on the lease. 736  closing = 441 (lease payment #1) + 237 registration fee + 58 CA Tire fee Gross Cap Cost 25688 Adjusted Cap 25688 Residual Value 15037 Depreciation 10650 Rent Charge 4002 Base lease 407 Lease tax 34 the dealer indicated that on the TDI, VW requires them to use a standard residual value and money factor. I believe the money factor is .00312. the rate is higher than their other models as the TDI is in hi demand right now. hope this clarifies the math. thanks again for any input.
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Replying to: modo4128 (Jan 03, 2009 7:32 am) I prefer beating the dealer down below invoice and paying cash or borrowing from my Credit Union. I hate giving big bucks to the bank when they are paying little or nothing for that money. |
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Replying to: mdl3r1 (Jan 02, 2009 6:09 pm)
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Replying to: investor27 (Jan 06, 2009 7:40 am) Depreciation + finance + tax = lease payment |
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Replying to: investor27 (Jan 06, 2009 7:40 am) LeasingGuide.com explains it pretty well for us newbies... 
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Replying to: investor27 (Jan 06, 2009 7:40 am) |
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TDIClub.com has some great resources for buyers: Prices Paid for 09 Jetta TDI It seems most people have been paying MSRP for the TDI Jetta, but over the last few months, people were reporting paying under MSRP, so the market may be improving. Dealer selling TDI Sportwagens for $600 over dealer invoice Same Dealer offering TDI sedans for $300 over dealer invoice I went to a dealer this weekend to look at the Sportwagen. The dealer told me that VW is only bringing in 4,500 TDI Sportwagens this year so there are not that many available. |
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Was at our VW dealer today (Sunday) and they have maybe 6 or 7 TDI's. Some had a market adjustment of 5% while some didn't have any adjustment. All were equiped about the same and going for about the same price. Any reasons why??
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