We have a 2014 Jetta SE that is 16,000 miles over the allowance. We are willing to lease another Jetta but they want to penalize us $3,200 for the over miles and another $1000 or so for the 4 remaining payments. They offered a 2017 Jetta SE for an approximately $19,500 cap cost after discounts. After adding in the over miles penalty and accounting for the remaining payments the best offer they could do was approx $1700 up-front and $299 / mo. I felt like the penalty was too harsh given this is our 3rd Jetta from this dealership. The current buyout on the car is $11,800 with 4 payments remaining.
My questions:
Does this sound like a fair offer?
What alternatives would you recommend? We are open to a different make/model and I think we can manage to keep the miles within a 15,000 limit per year moving forward to avoid this again.
The penalty is too harsh? Its whatever you were contractually allowed plus the extra mileage fee. I think its reasonable. Unless WV offers some extra allowance dealer will not pay for it, or pay and give you a very small discount.
Try to think of your new deal and old deal separately. You have a vehicle that has X miles with a current payoff of Y. The absolute most you should ‘pay’ to the dealer in your next deal is the difference between those two numbers. Meaning hypothetically your payoff is $12k and the car is worth $9K wholesale. So owing $3k currently (apply whatever the real numbers are) is your worst case scenario. Your other option is as you suggested pay the remaining payments and pay the mileage penalty.
Make sure you have a really good grasp of both sides of the deal. You could for instance call a couple other dealers and tell them you are shopping a zero down Jetta deal and get quotes. Then do some addition on your own and add in the negative equity so you know you’re not getting screwed on the turn-in.
Also, forget the whole “I’ve already bought two cars here, so they’ll take care of me.” In reality, the GM is probably looking up the gross on your last deal and trying to beat it. You being loyal will cost you money, not save money. You want dealers to slit each other’s throats - not yours.
Focus on the new deal. I was working a 36 mo./10k per year, $109/mth, ZERO SIGN and drive lease deal for a 2017 Jetta here in San Diego. Went with another vehicle but this deal is very attainable.
tdkcfo1, Was this for an SE model? Sounds like a great deal.
Pizza8822, in applying that logic I felt that paying the $3200 + $1000 penalty would be giving up too much and bringing it below the wholesale value. I could be wrong. I see similar vehicles listed by the same dealership on autotrader for $13k. $12k current payoff - $4200 = $7800. I can’t see them investing more than $500 to get the vehicle ready for sale.
I should have mentioned that I was able to talk them down from $346 to $299 (perhaps accounting for the hypothetical “overpay” on the penalty if my logic is correct). By that time I was a little frustrated and left, although the $299 seems like a reasonable deal. But not in comparison to tdkcfo1’s $109/mo offer!
