Looking for feedback on a 15 sportwagon TDI SEL lease

[gstein1]

Just looking for some feedback on a lease for a 2015 Sportwagon TDI SEL DSG with light package lease.
msrp 33260
sale price 31230.00
tax 1260.40
total price 32490
3 years, 30000 miles, taxes rolled in to payment
mf .00166 residual 58%
monthly 424
good deal? Thank you in advance for your assistance.
(and yes i know leasing is horrible idea blah blah........)

 

[South Coast Guy]

Several thoughts:
1. You paid all the sales tax - not just for your portion of ownership? I am not sure here.
2. How many miles will you drive in 3 years and how much is the per mile charge if you exceed that? If you don't come close to 30K you are paying for mileage you never used.
3. If you plan on getting a new car after 3 years, leasing is fine.

 

[No More Buffalo]

Don't thinking he's paying all the tax. $1260 is only ~4% on a 31k value. Around here the tax is more like 7.

I think you're nuts though.

You could finance it for 72 months and be at around that same payment, maybe a tick more (depending on down payment, of course), and you would probably be about break-even after 3 years (I actually came in about $500 ahead after exactly 3 years when trading in my Mk6 on my Mk7), with no worries about mileage overages.

 

[skramer]

Just looking for some feedback on a lease for a 2015 Sportwagon TDI SEL DSG with light package lease.
msrp 33260
sale price 31230.00
tax 1260.40
total price 32490
3 years, 30000 miles, taxes rolled in to payment
mf .00166 residual 58%
monthly 424
good deal? Thank you in advance for your assistance.
(and yes i know leasing is horrible idea blah blah........)

Just no lease deals on the GSW atm...If you want a lease (and good reasons to lease, pro/con to everything), I would either wait for some deals, or see what the hatchbacks have as they have better terms atm. I was looking at foresters because of such good lease deals before I went with the GSW

 

[TurnOne]

Seems like a fair price but probably still a bad financial idea. High residual is good for lease but terrible if you buy the car at the end.

 

[South Coast Guy]

Don't thinking he's paying all the tax. $1260 is only ~4% on a 31k value. Around here the tax is more like 7.

I think you're nuts though.

You could finance it for 72 months and be at around that same payment, maybe a tick more (depending on down payment, of course), and you would probably be about break-even after 3 years (I actually came in about $500 ahead after exactly 3 years when trading in my Mk6 on my Mk7), with no worries about mileage overages.

Finance for six years? You would be upside down in that loan for 5 years.

 

[No More Buffalo]

Like I said, I financed my Mk6 Golf for 72 months when I bought it in late March 2012. Traded it in on my Mk7 this month and got a trade-in value of $loan_payout + $500.

 

[k^2]

Your total payout over 3 years will be $15,264 !! That is almost half value of the new car!! And you will drive it only for 30,000 miles. We can assume that these cars will run for 240,000 miles. You will be paying 1/2 price of the car for 1/8 of its usage !! BAD deal. On top of that why would you buy Diesel if you planning to drive so little?

 

[sarahspins]

On top of that why would you buy Diesel if you planning to drive so little?

Yup, this! When I bought my JSW my salesman made sure I would be driving enough to keep a diesel "happy" - I had been averaging 20k a year on my last car (though I was putting on slightly more towards the end) with a fairly long work commute (even a short "trip to get groceries" for me is about 8.5 miles since I live in the sticks) and I've put 23k miles on my JSW in 11 months. 10k a year is not much.... if that's lots of short commutes you're asking for trouble with a diesel.

My mom is looking at buying a Golf, and interestingly she's looking at the gas model, and the salespeople keep pushing her towards a diesel, and she DOESN'T drive enough for one - and thankfully she knows it, but since none of the dealers can keep a gas model on the lot, they're really trying to push the TDI's.

 

[D15SEL]

Your total payout over 3 years will be $15,264 !! That is almost half value of the new car!! And you will drive it only for 30,000 miles. We can assume that these cars will run for 240,000 miles. You will be paying 1/2 price of the car for 1/8 of its usage !! BAD deal. On top of that why would you buy Diesel if you planning to drive so little?

I agree on this one.....
The up charge of buying a Diesel engine and not driving it.
I would exhaust my mileage limit in 10 months.
I would try to buy or lease the gas version.
Just sayin'

 

[No More Buffalo]

And if you want something a bit "special" a GTI is basically price equivalent with a TDI.

If I was only doing 10k a year I'd have bought a GTI for sure. But I do more like 15k, so...

 

[Demo3]

Lease = Flease... imho

 

[meerschm]

If you cannot fully pay off a car in three years, you are fooling yourself.

 

[kjclow]

Can't remember the last time I had a 36 month car loan. It's not a matter of being able to pay off the car in three years, it's more a matter of better things to do with that other money, especially when my car loans have had the lowest percentage rate of any other loans.

 

[skramer]

If you cannot fully pay off a car in three years, you are fooling yourself.

It depends on if you can get something paying higher interest than what your loan interest is.

 

[kulak]

It's not just about the math (interest rate) there is also risk. Choosing to get a loan so you can invest in next big IPO may not be worth the risk for some. For me I'd prefer title in hand and paid off house. It keeps your monthly cash flow freed up and if you want to invest incrementally you still can.

If you don't want it enough to pay cash, maybe you don't want the car that bad.

 

[dgoodhue]

I don't think those are great lease numbers at all. Maybe VW was more motivated to move the 2014's. The quote I got from the VW dealer last summer was 56% residual with 15k per year and a me of 0.00102. (This is about 2.5% interest, yours is 4%).

Even with the better lease numbers I decided to buy. Running the numbers through 6 years (lease then buying it out) I was going to be ahead about $1500 with financing. I tend to keep my cars long term anyways.

 

[dgoodhue]

I am not in a financial position to pay my house off and pay cash for my cars. It is great that some people are in that financial position but not everyone is. I am not in financial ruin because I took a 6 year loan @ 0.9% for my VW. I have an emergency savings fund, great credit score, saving for retirement, pay my credit cards in full, and my only debit is cars/mortgage.

Personally, I am not going to drain my emergency fund to put a big down payment on a car. My wife's last car was 13 years old (bought new) and was approaching a new car payment in repairs. We keep our car long term to reduce average annual costs of the life of the vehicle. I tried buying the 4 year old used car and it really wasn't much cheaper per year when I ran the numbers afterwards. I tried to do the best I can to make smart financial decision but not everything goes perfectly as planned and everyone has different priorities.

 

[meerschm]

It depends on if you can get something paying higher interest than what your loan interest is.

this is not likely to be something you can find without a higher risk than you probably should be playing with.

borrowing to invest is, in a word, risky.

 

[meerschm]

While I am doling out free advice, if you have outstanding balances on high interest loans, you probably should not be looking at new cars.

(that being said, a new low end trim car can be a better deal than a slightly used high end trim car.)

The goal should be to be able to pay cash for the next car, and so on....

the dealers get a kickback on all leases and loans, and the banker(orwhoever) is in it to make money. as far as they are concerned, longer is better.

this money comes from your pocket.

 

[No More Buffalo]

That may be true, but in most cases are far as taking out credit, auto loans are about the best deal you're ever going to get. 0.9% is close to free money, and ocassionally (but not with VW) you'll see them go to ACTUAL 0% financing when they really need to move stock. That's literally same-as-cash free money, since inflation is historically 2-2.5%/year.

 

[TurnOne]

Free money doesn't account for be 40-60% drop in value in 3-4 years. Just ask Dave Ramsey. Fleece.

Also; I agree. No reason to lease a diesel. Lease for low mile drivers if anyone. Diesel for high mileage drivers.