Hi everyone, first post here. I’m not new to leasing, but I wanted some help. Currently leasing a 2015 VW Passat Sport, 36/12, paying $300/month. I have 5 months left and I’m looking at a new 2017 GLI. I just got some basic numbers and was pretty floored so I’m looking for help…
36/12 - Kentucky
MSRP: $30,185
SELLING PRICE: $27,600
MF: .00001
RV: 47% (I know now that’s incorrect, should be 54% I believe?)
Payment (only first month out of pocket): $457
This seems ridiculously high to me. Dealer (who is even a friend of mine…) claims they are “paying off my remaining 5 months”. Help me understand this and why on earth this is so high. I’m seeing people lease GLI’s for under $300.
I am seeing a 2017 GLI with MSRP of $30,235 for $298/Month for 36Months/12K Miles with $1,463 due at signing (First Month, DMV, Doc Fees, Acquisition Cost) on Honcker in NY/NJ.
Even when factoring in the $1,000 not paid due at signing, this should only increase the monthly payment by approximately $27~$30.
Yeah that’s what I thought. I have been plugging in all the numbers and I cannot for the lift of me figure out why the payment is that high. I feel like that’s not a very good discount, either. Correct me if I’m wrong, but shouldn’t I be able to snag a GLI for close to $25k right now?
Based on the numbers you posted, I get around 400 a month (I guessed with fees, I’m from Kentucky too, so my guess isn’t that far off). And then when you factor in 1500 dollars in remaining payments, spread that over 36 months, thats another 70 dollars. So based on your numbers (with the residual at 47), the quote seems accurate.
I don’t know anything about Jettas, so i’m not sure if you can get a better deal, but the current deal posted at least makes sense.
I emailed 3 dealers recently about GLI’s and all 3 quotes came out in the high 300’s, so its not really an attractive lease right now. They have no lease cash and for some reason VW dealers all are not willing to put much of a discount on the sales price - even though it seems like these are selling at a glacial pace right now.
What would be my smartest option on how to deal with my current lease? I have 5 payments now remaining, at $300/month. BUT, I’m almost at my 36,000 limit, with my lease ending the beginning of January. So, taking into account how much I drive, I could be over by up to 7,000 miles. Should I continue looking right now and find some way to dump it early, or do I wait until lease end and deal with overages?
What is your payoff + remaining payments less on your current car?
How much do you pay per mile for overages? If its .15-.20 thats about 1000-1400 extra you will owe at the end. So, figure out your payoff +remaining payments then subtract a potential trade amount for that to get a good idea of whether you’d want to roll all that negative into a new lease or just pay the extra at the end of your current lease and get to start all over with a clean slate.
I checked the payoff a couple of days ago. I honestly don’t remember the EXACT amount but it was a little over $17k. Trade-in for my car, from what I’ve seen, is in the $13k to $14k range, so I’m in the hole there I know. Overage is .20 per mile.
So 5 remaining $300 payments ($1500) + $4K inequity = $5500 negative that you would be potentially rolling into 36 months today, which is about $152/month !
So the mileage hit seems minimal in comparison to that if you have the ~$1500 at the end of the lease.
Look at Volvo S60 lease - there is $1,500 cash + $6,400 lease allowance. You can have it for under $300/mo and possibly in mid $200s with $0 down. Even if they don’t give you your payoff, you can park your car for 5 months and it will cost you extra $41/mo over 36 month lease.
Monthly payment of $259, based on $38,890 MSRP of 2017 S60 T5 FWD Inscription with Heated Seats and Metallic Paint, includes destination charge and application of $1,500 Volvo Allowance and $6,400 Lease Bonus. Lessee is responsible for excess wear and mileage over 10,000 miles/year at $0.25 / mile.
Okay, so I guess I am totally misunderstanding this. Like I said, I’m not new to leasing…but I AM new to this type of situation. I was under the impression that if I got out of my lease now, all that’s owed extra, to possibly be added on the next lease, are my remaining payments… so $1,500. But I also owe the difference of my payoff against the trade-in value??
Your calculations are not right. If the OP were to trade-in his current car and the dealer buys it, he would be rolling over only the $4k in negative equity. However, it makes more sense for the dealer to just check roll in the remaining payments ($1500 or $1850, depending on disposition fee as well) into the new lease and cut a check for that amount to the OP so he can just turn the car in 5 months.
Yeah, that is obviously the best way to go if you can just park the car for the 5 months. Alternatively, if you have the funds to cover the 5 payments, you can just leave it out of the new deal entirely - which has the benefit of making the new deal less of a burden down the line if you need to offload it.
Well I can’t just park it for 5 months or I’ll have no way of getting to work…haha. I guess I’m confused…so my best option is to just wait until December/January and just pay the overage?
If you don’t have a serious itch for a new car, the cheapest option is probably just to keep driving it and pay the miles at the end. This one would cost you a known amount based on how much you expect to drive the next 5 months, and its probably the cheapest option - as long as you have the $1-1.4k in funds available at the end for the overage.
Or, if you really want lease a new car and keep the Passat for 5 months but don’t drive it - that is going to cost you a bit more because that is 5 months of extra insurance to keep in addition to the $1500 in payments. But if you really want to get into a new car and want to “Finance” the $1500 instead of paying $1000-$1400 for miles at the end, its not the worst thing especially if you are rolling that $1500 into a very low money factor. Downside is that you have now put that extra money on a new lease, and if you are in a similar situation 30 months from now, its going to put you in a worse spot with that extra $40/month in your new payment.
And if he keeps driving old car - he pays the same insurance, so no savings there, $1,500 only.
If he rolls anything in then it means dealer buys his car - so it will not be his remaining payments, but his negative equity. He just needs to get a cheaper lease (I mentioned above for S60) and eat $,1500 by parking his old car.
I still think just paying the extra miles is the cheapest way to go unless the OP really wants a new car. If he parks the car for 5 months and gets a new lease, insurance would still need to be paid on the old car until turn-in (at least I think this would be the case for most states/leases?), in addition to insurance on the new one.
