IndigoBlueWagon
TDIClub Enthusiast, Principal IDParts, Vendor , w/
Not yet. I'm going to wait until I get a bill. Then I can just go on their site and see the payoff amount and do the math.
In your case the money factor is 0.00127 (calculated from what you showed above), which is 3.72 times the 0.00034 factor I was quoted on the SE that I'm about to close the deal on. And your credit history is perfect. Weird. I thought that good credit history meant the lease would be close to 0% APR.My numbers worked out like this: MSRP $25735 + $625 lease origination + $180 documentation = $26540 - $8500 = $18040
Residual Value = $12353
Depreciation + rent charge = $5687 + $1284 = $6971/24 = 290 per month
In Kansas so sales tax was collected at purchase on the $8500 rebate. Monthly sales tax took the monthly payment to $316.
Lease Buyout was $18479 after one month's payment and was made up of following numbers:
Residual $12353 + remaining lease payments $6680 + sales tax on lease $605 = $19638
$19638 - lease charge rebate $1159 = $18479
As you can see, the sales tax complicates things, especially since the numbers above include sales tax on the lease rent charge ($1284). That is overcome by reducing the residual value (the only component that I have yet to pay sales tax on) on my receipt by $1159 (the lease charge rebate that I have paid sales tax on but had refunded due to early payment).
Ignoring sales tax, I paid $18165 for the car including all fees and interest. It looks like they only refund 22 months of interest, despite paying off 9 days before due date of second payment. My rent charge seems high compared to others reporting here and even the dealer commented it being higher than normal especially since I had a credit score above 800 when they pulled it. But since I intended paying it off asap it didn't worry me too much.
Hope that helps.
I understand that. However, I thought this was VW mandated, that with perfect CH you get the 72 mos, 0% financing and 5k rebate; or 8.5k rebate and "almost" 0% financing on the 2yr lease.But if he pays it off right away the money factor doesn't really matter.
The issue of tax calculated before or after rebate has been discussed elsewhere. Basically each state is different, but most charge the sales tax before the rebate. It's treated the same as buying a washing machine and then getting a $100 rebate in the mail.I understand that. However, I thought this was VW mandated, that with perfect CH you get the 72 mos, 0% financing and 5k rebate; or 8.5k rebate and "almost" 0% financing on the 2yr lease.
Apparently not, dealers do whatever they want on the lease deal. Also, in my case they said they'd apply the 8.5k rebate after tax, not before. I've never heard of that: all lease calculators apply rebates before tax.
Original MSRP was $28,815. They're only giving you $3700 off MSRP on a 3 year old car? Ouch.I just received the official numbers on the GSW SE 6MT I'm about to buy (they told me the deal with the guy who had a deposit on the car fell through due to credit related issues; needless to say that I was excited, I didn't think I could grab one so late in the game). Looks good, out-the-door price of $25,100 (I even included the tax on residual, plus registration fee, which I know I'll have to pay again at the end of the lease when I purchase the car). But they wouldn't send me the full contract. Just texted me the upfront cost (one month payment plus state tax), monthly payment, residual and said "this is all you pay". I said "I'm not flying to NY to pick up the car without seeing the contract in advance". They finally agreed to send it to me via FedEx, and I said I'd look it over, sign it and send it back. This way, the purchase will be completed and I'll just go there to pick the car up and leave. I don't know if I'll do that or just fly in with the unsigned contract, so that I have the option to not sign it if something's wrong with the car.
It will offset the price, just like the 8500 incentive. Not sure about FL, but in some states you could also save by not having to pay the taxes on that amount - in which case, it will be applied BEFORE the taxes.
If u do trade-in for the lease, buy out the lease ASAP. Otherwise, if she's totalled, that 10K is gone.
To simplify, post the thing on Craigslist, you can always get better price by selling to a private party.
In my case, they FedEx-ed me the contract and got it yesterday. Now I have a feeling the deal's gonna go south.MSRP + doc + title + reg + license plate + sales tax + lease origination fee + lease termination fee + whatever else dealer can dupe you for (pinstriping, VIN etching, $500 medical kit, "undercoating", $400 mud flaps, $200 floor mats ) = price'o'grande <- the most important # of them all. This is what you need to bring down/control. Very hard to do when you really really want that pink unicorn one-of-a-kind-never-to-be-made-again car
price'o'grande - trade in - 8500 = $Y
.45*$Y = residual
$Y - residual = depreciation
depreciation * money_factor * 2400 = rent (effectively interest for the depreciation)
(depreciation + rent)/24 = monthly payment
Most states, u'd also have to pay sales tax on depreciation, rolled into your monthly payment
You 'd want to buy ASAP as you have $10K of your own equity in it. It is titled to VWC and if it is to get totalled, they will get the check from insurance and you wont get squat. That $10K will be gone.
So you MUST buy it ASAP.
VWC will refund the rent and the lease. Your total purchase price will be $N, will NOT include sales tax. $N will include residual + whatever portion of depreciation that you didnt pay yet.
You receive the title and go to DMV to register it under your name. In most states they will ask you to pay sales tax on $N. The car is already titled in your state, so no title fee. If you kept your trade-in's license plates, in most states they can "reuse" them for the VW, so no license plate fee either (may be $5).
If you're in really good state, they'd prorate the registration fee, if not, you will get nicked for 1 full year of registration fee.
When leasing they will force you to have "full coverage" for your car. When it is your own, up to you what coverage you want to have, so call your insurance Co, might save few hundred there as well.
Yes, he wrote back in the meantime saying he'll send me a new contract on Thursday (he's off tomorrow). I guess that means he admitted to the mistake. Maybe it was just a mistake, after all. But one that would have ended up costing me like $900 if I hadn't caught it.Only the 1st lease pmnt really HAS to be made @ pickup.
The rest could all be rolled in - but then you will be borrowing that amt at interest.
When banks see one can not come up with any money to put down, they might jack up the money factor.
Yet, you DONT want to put much money down as it will be a straight loss should car get totalled while still owned by VWC. ~$1500 is reasonable.
You did seem to catch a mistake they made , dont overthink it. Other than that, it is very straightforward lease pricing example and you have it all figured out. Money factor is pretty low, so go for it.
Hopefully they get it straightened out and come clean, and good job getting the contract up front and analyzing it thoroughly. Concerning the condition of the car, I would also ask for a copy of the service ticket for when the car was refurbished/updated. There is a list somewhere around this forum that shows what the dealers must do, and what they need to evaluate on each car. I believe they have to change oil, oil filter, fuel filter, cabin filter, flush brake fluid. Other items they have to evaluate are tires, brake pads and rotors, and wipers. I'm probably missing something...Yes, he wrote back in the meantime saying he'll send me a new contract on Thursday (he's off tomorrow). I guess that means he admitted to the mistake. Maybe it was just a mistake, after all. But one that would have ended up costing me like $900 if I hadn't caught it.
Anyway, I guess I should be happy it was a mistake, and not what I suspected. That will put the whole deal at about $24,200 (and that includes state tax on residual, plus re-registration of the car upon purchase). Not bad for an SE 6MT.
Hopefully, there won't be any more surprises with the revised contract. Nor with the condition of the car when I fly in to pick it up (flat spots on tires, bad battery, etc).
I'll keep you posted (I've learned so much here on this forum).
Yes, you can, and most will do that. I did that 3 weeks ago when I got my GSW. I also had a trade in that I was able to haggle a very good trade in amount for, and it offset most of the sales tax on the new car. I had them cut me a $5000 check and put the rest toward the new car, and financed the rest at 0%. They should do that for a lease as well.Can I ask the dealer to cut me a $8500 check?
Wish i had tried that. Doubt they'd of went for it, but if they had i'd have less questions as to where it went.Yes, you can, and most will do that. I did that 3 weeks ago when I got my GSW. I also had a trade in that I was able to haggle a very good trade in amount for, and it offset most of the sales tax on the new car. I had them cut me a $5000 check and put the rest toward the new car, and financed the rest at 0%. They should do that for a lease as well.
I'm not talking about a check for the rebate, I'm talking about a (partial) check for my trade in. Although I guess it's all the same anyway.Wish i had tried that. Doubt they'd of went for it, but if they had i'd have less questions as to where it went.
I'd love to know if anyone here has gotten the dealer to write them the rebate check on a lease.
OK...Hopefully they get it straightened out and come clean, and good job getting the contract up front and analyzing it thoroughly. Concerning the condition of the car, I would also ask for a copy of the service ticket for when the car was refurbished/updated. There is a list somewhere around this forum that shows what the dealers must do, and what they need to evaluate on each car. I believe they have to change oil, oil filter, fuel filter, cabin filter, flush brake fluid. Other items they have to evaluate are tires, brake pads and rotors, and wipers. I'm probably missing something...