Lease early-purchase experience anyone ?

y2kbird said:

Imanco, you paid alot of extra $ to the dealer who marked up your lease rate. BOTH of my dealers marked up the interest rate from money factor .0032 0.49% to .0172 (4%), but then negotiate way down.

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You mean .00032 and .00172.

@Aditud, Thanks!

All those zeroes in the MF are precisely for this reason: to confuse the cr@p out of consumers

Stealership was telling me if I do a early lease buy out in Florida I will have to do it through the dealership, is it true?

I doubt it. Once you've signed the lease papers the dealer has no claim to the car. VW Credit owns it. You buy out from them.

Miata said:

Stealership was telling me if I do a early lease buy out in Florida I will have to do it through the dealership, is it true?

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I agree with the previous poster. Sounds like BS.

Miata said:

Stealership was telling me if I do a early lease buy out in Florida I will have to do it through the dealership, is it true?

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You CAN go to a dealer to buy out the lease early, or buy it at end of lease. If you do, the dealer will add tons of bogus fees, maybe a warranty upsell, and maybe a $699.00 doc fee. OR you can go online,click the payoff button, and wait for your title. Directly with VW. Same process as if you accidentally misplaced the car and forgot to carry insurance coverage. OR you can call VW credit, ask for a payoff amount which will be good for X days of the call, and overnight them check.

Thanks for listing it my real options.

they keep telling me how I shouldnt be leasing this car, I should take the $5000 off option and buy it
LOL stealership

Took delivery of mine yesterday
Do I have to wait to call vw credit to get my account number?

"New" 2015 SEL Golf TDI, vs Pre-Owned

I'd appreciate any advice on this situation from those of you have dealt with something similar:
I've put down a deposit on a 2015 Golf TDI SEL, with MSRP of $30,855. I have the option of either doing the 0% for 72 months or $8,500 lease cash (which I have the cash to buy out). Dealer isn't budging from the $5k or $8,500 off MSRP. I've requested a copy of the lease agreement to review money factor, fees, etc.
I just saw the identical car at a local dealership for $22,800, pre-owned, with around 13,000 miles. I'm going to look at it tomorrow, and not sure where the dealer will be on price.
Once I receive the lease agreement, what should I be focusing on to compare apples to apples with the price of the pre-owned car?
I should qualify for a decent money factor, provided the dealership doesn't jack it up, as my credit score is around 820. Off the top of his head, the finance guy at the dealership said he thought the money factor would equate to around 3.5%, but I haven't seen anything in writing, and haven't done the credit application yet.
Note - the new TDI is at a dealership around 250 miles away, while the pre-owned car with 13k miles is about 40 miles away.
What do you all think?

If you're going to pay the lease off right away the money factor doesn't matter. What does matter is fees. My lease has $395 for documents, $350 disposition fee (if you turn in), and a $625 acquisition fee if you purchase. So $1,020 in fees. The loan agreement I saw didn't show fees, but I bet they would have still charged a doc fee if I'd gone ahead with the loan.

The key is that the lease saves you more money if you pay it off immediately. And on a more expensive car like yours it may only save you money if you pay it off right away. Otherwise the 0% loan, even if you don't take it for 6 years, may be a better deal.

Unless the dealer with the used '15 is willing to drop the price substantially, the new one looks like a better deal.

I agree with what IBW said.

8500 lease is better than 5000 loan is better than CPO

Figure the lease being a $7825 discount ($8500-625 aquision fee). Now how does the USED car price compare? The 0% loan requires you to give up $2825 in 'free rebate money', so it's definitely a less popular option.

Both of those are probably still better prices than buying a Used CPO car.

I didn't buy Certified pre owned because there is still wear and tear. DSG may be closer or past an expensive 40k service. Tires are unlikely to be new. My dealer had a sign that said deductible may be required for Certified Pre Owned service. I don't know this for certain, but suspect the 2yr/24k bumper to bumper warranty will exclude things, or have a deductible. Forget about getting a dash rattle etc fixed on a CPO car.

The dealer rate factor can matter in the sense that if the dealer marks it up , then you pay "rent charge" on the final pink-slip VW lease agreement. (buy rate as of yesterday on Jetta SEL is .00038, buy rate on Jetta S is .00032). ' I think the biggest advantage if the dealer doesn't mark up the rate factor, is that you can cheaply/safely just make the 23 monthly lease payments and then buy out the car at the end. If the dealer jacked up the rate factor to pad their pockets, then as much as $50/month of your payment may is going in the dealer's pocket, so every month you go without buying out the lease is costing you $$.

Another cheap Jetta S, even though it is a DSG (24k sticker, 1k dealer discount, 8500 rebate, 350 bosch rebate = 14k) is sure tempting me...

IndigoBlueWagon said:

If you're going to pay the lease off right away the money factor doesn't matter. What does matter is fees. My lease has $395 for documents, $350 disposition fee (if you turn in), and a $625 acquisition fee if you purchase. So $1,020 in fees. The loan agreement I saw didn't show fees, but I bet they would have still charged a doc fee if I'd gone ahead with the loan.

The key is that the lease saves you more money if you pay it off immediately. And on a more expensive car like yours it may only save you money if you pay it off right away. Otherwise the 0% loan, even if you don't take it for 6 years, may be a better deal.

Unless the dealer with the used '15 is willing to drop the price substantially, the new one looks like a better deal.

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y2kbird said:

I agree with what IBW said.

8500 lease is better than 5000 loan is better than CPO

Figure the lease being a $7825 discount ($8500-625 aquision fee). Now how does the USED car price compare? The 0% loan requires you to give up $2825 in 'free rebate money', so it's definitely a less popular option.

Both of those are probably still better prices than buying a Used CPO car.

I didn't buy Certified pre owned because there is still wear and tear. DSG may be closer or past an expensive 40k service. Tires are unlikely to be new. My dealer had a sign that said deductible may be required for Certified Pre Owned service. I don't know this for certain, but suspect the 2yr/24k bumper to bumper warranty will exclude things, or have a deductible. Forget about getting a dash rattle etc fixed on a CPO car.

The dealer rate factor can matter in the sense that if the dealer marks it up , then you pay "rent charge" on the final pink-slip VW lease agreement. (buy rate as of yesterday on Jetta SEL is .00038, buy rate on Jetta S is .00032). ' I think the biggest advantage if the dealer doesn't mark up the rate factor, is that you can cheaply/safely just make the 23 monthly lease payments and then buy out the car at the end. If the dealer jacked up the rate factor to pad their pockets, then as much as $50/month of your payment may is going in the dealer's pocket, so every month you go without buying out the lease is costing you $$.

Another cheap Jetta S, even though it is a DSG (24k sticker, 1k dealer discount, 8500 rebate, 350 bosch rebate = 14k) is sure tempting me...

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Thank you both for the detailed responses. I was thinking the same thing (CPO being the least desirable option in this case), but after staring at the numbers all morning, wanted to make sure I wasn't missing something. Sounds like I'll be spending the weekend in Chicago picking up the new Golf!!

We are leasing our new 2015 SEL. We picked it up on Memorial Day weekend and left our 13 at the Dealer waiting for the appointment buyback to VW. The buyback appointment is Wed. A surprise occurred at the time of the transaction. The Finance guy told us we could use part of the $8500 as a due at signing payment and no money would need to be paid by us. Of course we said "sure, let's do that". Well, we never got any paperwork and became concerned as our first payment is due on the 27th of June. Called VW Credit and found they had no record of our VIN Number and suggested we call the Dealer to find out if they and used another financial Insto. Called the credit guy and, hat in hand, told us he screwed up and the $8500 could not be used and applied as a down payment and we need to rework the paperwork and tender around $2700 before the 27th. We are accommodating him and will do so while we are at the Dealer on the 28th to sign the buyback docs. I don't believe it was anything other than stupidity that caused this kerfuffle, so I'm not put out or feeling ill-used. But, here's where I am scratching my head, and wondering about the credit guy. I said to him that we would be paying off the lease as soon as the check arrived from VW. He commented that it might hurt my credit rating to pay-off the lease immediately. Huh?? Anyway, it got me to do some Googling re FICO scores (ours is 782) and found some interesting facts.
The most surprising was paying off major loans like Mortgage or Car loans is totally FICO score neutral, there is no reward nor is there any penalty on FICO scores to do so.
The two major ingredients, approx. 30% and 30% is timeliness of loan payments and --very surprising to me-- was the score for credit utilization. Credit utilization is the percentage you charge on a CC every month. If it exceeds 15% it decreases your FICO score, even if you never are late in paying it off monthly. So, if this is something one regularly does, it is best to call the card issuing insto and them lift your limit of available credit to fit your charging habits, or failing that, use a number of cards and spreadout the totals to stay inline with the 15% utilization ideal.

My dealer applied the entire $8,500 to reducing the capitalized cost of the car for the lease. I did still have to make a first lease payment when I picked up the car. It's not clear to me if your dealer is saying he couldn't use the rebate to make the first lease payment (which I don't think he can) or to reduce the cost of the vehicle and lower the lease payment (which he most certainly can). If he didn't use the rebate for that, what did he do with it? Write you a check?

I think it took about two weeks to hear from VW Credit that my account was set up. It also sounds like your dealer is having some admin issues.

Rustycat, the onus of the dealer fixing their error is on them. $2800 is an absurd downpayment. My first dealer did the same.. did not show the 8500 as single line cap cost reduction as VW requires. He called and the dealership had me sign new paperwork which showed an extra $1200 down. The dealership volunteered to eat every cent of that, or if it put me out too much re-signing a new lease they would have let me return the car with 3000 miles on it and they would have paid the cross country shipping cost.


DO not listen to the credit guy. They are not worried about you at all. They know that if you do not keep the loan/lease for at least 90 days after delivery, all the kickbacks get charged back to them. A small $125ish fee for writing the lease. And if they jacked your finance rate up, another THOUSAND bucks or so (basically whatever $ amount is shown on your lease doc on the 'additional rent/charge) line.

Hey rustycat we paid off out lease with out buyback money 3 days before the first lease payment was due over a month ago and my credit score they was 800+ and we are now refinancing our house and our credit score is now a tad bit higher. Paying it off this soon saved me quite a bit and I still got a $33.00 check back from VW Credit.

Florida :
I got my VW credit account number finally, logged on
Found out I cannot get the payoff amount from VW credit, called and got the same thing
I need to head to the dealership to get this done. Annoying