- #53 of 185
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Taking over a lease
by rheaton
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Jul 19, 2006 (7:53 am)
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I'm interested in finding a new home for my Touareg as I am moving. Is the residual value of someone financing the Touareg under a new lease different than the residual value on my current lease? I.e. what would be cheaper for someone - a new lease or taking over my current one. Details below.
2005 VW Touareg V8 with every option except trailer hitch, tire pressure monitor, and 4 zone AC.
My current lease is for $725. Gross capitalized cost is $53,265. Terms are 4 years, 15k miles/year, about 34 months left of lease. Residual value of $24,140.
Thanks for the help.
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- #54 of 185
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Re: 06 Touareg V6 Lease [capodanno]
by Car_man HOST
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Jul 23, 2006 (3:38 pm)
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Replying to: capodanno (Jul 08, 2006 3:54 pm)
Hi capodanno. $500 over dealer invoice is a good price for a leased 2006 Touareg. Make sure that the tells you its exact MSRP and selling price though so you can see for yourself. These numbers are also useful because they allow one to double check their vehicle's lease payment. The money factor that you were quoted for this truck is right in line with VW Credit's current program for it. VW Credit's current 36 month, 12,000 mile per year residual value for this truck is 48%. This number increases to 50% for leases with only 12,000 miles per year. So assuming that you are getting this truck for $500 over invoice, this looks like a good deal to me. You probably should cut back on the money that you are paying at lease signing though. Consumers are free to lease any vehicle that they want without making any sort of capitalized cost reduction. In fact, it is in your best interest not to make one because if your leased vehicle is totaled in an accident or stolen and never recovered during your lease your down payment essentially disappears.
Car_man
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- #55 of 185
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Re: 06 Tourage V6 [dsnow77]
by Car_man HOST
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Jul 23, 2006 (3:40 pm)
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Replying to: dsnow77 (Jul 11, 2006 2:44 pm)
Hi dsnow77. As I just mentioned to another community member $500 over dealer invoice is a good price for a leased 2006 Volkswagen Touareg. If you tell me what this truck's exact selling price is, I can calculate what its lease payment should be using VW Credit's actual lease program.
Car_man
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- #56 of 185
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Re: Taking over a lease [rheaton]
by Car_man HOST
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Jul 23, 2006 (3:45 pm)
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Replying to: rheaton (Jul 19, 2006 7:53 am)
Hello rheaton. I am sorry to say that it is likely going to be very expensive for you to get out of your leased Touareg 34 months before its scheduled end date. Even if you are able to get out of your current lease without losing too much money, which is highly unlikely, you still can't lease your truck to someone else. Your best bet would be to try to find someone to assume your current lease on this truck, assuming that VW Credit allows lease assumptions. There are web sites out there like swapalease.com that facilitate such transactions. You may have a tough time finding someone to assume a $725 a month payment without supplementing the deal a little out of your own pocket though. I wish that I had better news for you, but it's often very expensive to break leases early.
Car_man
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- #57 of 185
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Residual
by capodanno
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Jul 25, 2006 (7:45 pm)
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Thank you for the advice. I ended up getting an even better deal on a V6 with package 2, but I have a question. Although I negotiated a price of just under $37,000, I was surprised to see that the 50% residual (for a 12,000 mile lease) was based on the MSRP, and NOT on the negotiated price. So the 50% residual is just over $20,000 instead of half of the $37,000. Is that normal or did I get duped on that part?
Also, is it a bad idea to buy a car at the end of your lease? I seem to think the car's value will be worth more than what I'll owe at the end of the lease, which would be a good thing. (I think.)
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- #58 of 185
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Re: Residual [capodanno]
by kyfdx HOST
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Jul 26, 2006 (3:43 am)
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Replying to: capodanno (Jul 25, 2006 7:45 pm)
1) Residual is always based on MSRP.. Whether you got a good deal or a bad deal, the car will be worth the same at the end of the term..
2) If your car is worth more than the residual at the end of the lease, it would certainly be a good deal to buy it at that time.. I wouldn't bet on that being the case, though... Most residuals are somewhat optimistic (which is good, as high residuals make for lower lease payments).
regards,
kyfdx
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- #59 of 185
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Your opinions on the option to purchase after a lease
by stars4304
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Jul 29, 2006 (11:25 am)
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I was wondering if I can get your opinions on the option to purchase a car when the lease is up.
My friend, who has been wanting to get the 06 Touareg, is deciding to do this because payments to finance the car is too much.
From what I know, it would be a lot better to just finance from the start. How much more money would she end up spending? Do you guys think it's worth doing this just to have the car that you want?
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- #60 of 185
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Re: Your opinions on the option to purchase after a lease [stars4304]
by Car_man HOST
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Aug 09, 2006 (1:36 am)
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Replying to: stars4304 (Jul 29, 2006 11:25 am)
Hi stars4304. There's nothing wrong with leasing a 2006 Volkswagen Touareg right now. VW Credit's lease program for it is pretty good. Your friend can always lease one, drive it for a few years to see if they like it and then decide whether they want to buy it at the end of their lease. One of the benefits of doing this is if she gets into an accident in her Touareg during her lease and has it repaired she does not have to take the diminished value hit, VW Credit does. Plus if she gets a truck that gives here a lit of trouble she can just walk away from it at lease-end. If she enjoys the Touareg, at the end of her lease she can determine if its purchase option price is in line with what she would have to pay for an equivalent used Touareg on the open market. If so, she can just buy her truck from VW Credit either by paying cash or financing it. The only disadvantage to doing this is that she will end up paying for her truck for a long time if she leases it for say three years and then finances it at lease-end for another three or four years.
Car_man
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- #61 of 185
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VW 2006 V8 Touraeg Lease
by icedave825
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Sep 21, 2006 (10:18 am)
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Can you please help me calculate what the lease payments and residual should be for a 2006 Toureag with a $ 47,415 MSRP that I can buy for approx. $ 38,600 with the following lease terms: No cap cost reduction. 12,000 miles a year for a 36 month lease. Is the negiotated buy price of $ 38.6K used to calculate the lease payments since the residual is always based on MSRP ?
Thanks.
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- #62 of 185
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Re: Your opinions on the option to purchase after a lease [Car_man]
by juniorla
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Sep 25, 2006 (4:02 pm)
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Replying to: Car_man (Aug 09, 2006 1:36 am)
For a new, 2007 V-6 Touareg with Nav., park assist, leather, power seats, back up camera (package #2), the dealer is telling me that $700 over the invoice price is $44,527. I am having difficulty verifying this as $700 over invoice.
Their leasing offer is with $3,500 down, 12k miles per year:
-a lease for 4 years has a monthly payment of $591/month, exclusive of tax, and
-a lease for 3 years has a monthly payment of $622/month, exclusive of tax.
This seems high to me.
I have asked for but not yet received the money factor and residual %.
Thanks
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