2022 VW ID.4 Pro S RWD - Signed

Ask the Hackrs
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1

Decided to proceed with an ID.4 based on leasing and then buying out to take advantage of the $7.5K passthrough credit:

VD ID.4 Pro S RWD Gradient
MSRP: $49,215
$7.5K off via credit, $2.2K off from dealer
Adjusted cap cost: $39,500
Residual: 53%
MF: .0036
Money down: $1.5K to cover registration and fees

Also looking to use the MA EV Rebate to get $3.5K back to bring it to a net effective of $36K

Bad points: Will have to pay acquisition fee twice, $699 for taking lease and then $699 for buying lease out from VW. Thinking it over but likely to sign by EOW, loan to buy out lease is ranging from 5.5%-6.5%.

Calculator link

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You donā€™t pay acq fee when buying out the vehicle. They may have a buyout fee, but itā€™s usually lower than the acq fee.

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Thanks, I havenā€™t signed or seen the final vW paperwork but will be reading intensely to avoid surprises

Also forgot to mention that they wouldnā€™t budge on the monster mats at $300 for the car but is included in MSRP.

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Depending on where you live (rain, mud, snow, etc.), the mats are not such a bad thing. The price is likely OEM and probably close to what WeatherTech charges for a full set including the cargo mat.

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Dealers cannot take off any options/accessories thatā€™s included on the window sticker. A $2200 discount off MSRP sounds like a really good deal.

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It would be a good idea to double check whether youā€™ll qualify for the MA EV rebate. In order to get the $3,500 MOR-EV rebate on leases, you have to keep the lease for 3 years. If you sign a lease and then immediately buy the vehicle out, wouldnā€™t it count as a used vehicle and therefore not qualify for the MOR-EV rebate for new vehicles? Iā€™m not positive, but it might be something to look into just to be safe.

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Managed to get an answer, lease first and wait for the rebate, as long as itā€™s not sold to another party it should still qualify. The key element is having the lease buyout loan refer to the car as ā€œNewā€ in all paperwork.

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Iā€™m in CT and have a similar offer for 22 ID4 Pro S RWD:

MSRP 47,715.00
Dealer Discount 1,430.00
Rebate 9,750.00 (includes 2250 for CT CHEAPR EV Rebate)
Adjusted Price 36,535.00

Taxable Feeds(Est) 547.00
Doc Fee L 599.00
Taxable Feeds(Est) 691.90
Non Tax Fees 699.00
Balance 39,071.90

$2,000 down 36 months: 634.00

Did you get confirmation from them that you just need to pay the Adjusted cap cost plus taxes to buy the lease out? Any other fees from them?

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Was following the Reddit thread and seems as though after you have an account number you can login and request a payoff.

Were you able to match the same residual and MF?

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~$700/mo seems like a heck of a lot to spend onā€¦a $47k ID4 RWD.

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I think youre missing the point

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I agree, value is in getting a credit Iā€™m not normally entitled to plus getting out of the high MF they are charging and squeezing the dealer for $2K off plus the MA EV rebate to bring my cap cost down before I buy outright,

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Really makes me jealous no EV state credits are offered (anymore) in Texas!

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The point is buying out the lease right away, correct?

I would love to see the follow-up math on this from the OP, of what the buyout ends up costingā€¦

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The math is pretty easy as you know all the lease numbers, rebates and dispo fee up front.

Total cost will factor in financing or cash buy, but there are no unknowns really.

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Only grey area Iā€™m not too clear on is the tax that is applied (tax on cap cost or residual only) but earmarking the full 6.5% which would bring my total purchase (cap + tax) to $42K vs. $50K if I bought without leasing .

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Residual is 53%
Money factor is .00380
Aquisition fee is $699

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Ah, apologies - I wasnā€™t reading carefully, but now that makes more sense. I was thrown off by the other poster listing the lease payment.

Good luck with it! Seems like a good move.

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I am not sure if I am that good at math. But Iā€™ll take a crack at itā€¦lol

The question mark is about the finance/rent charges. I saw on the reddit thread a mention of needed to make 90 days/3 months lease payments. If thatā€™s the case then 3 months worth of rent/finance charges need to be factored in.

Is it standard policy (across all brands) for lessors to pro-rate finance /rent charges, in the case of an early buyout?

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You have no state income tax in TXšŸ˜‚ Most of the states that offer EV credit have state income tax and I bet itā€™s more that one time EV credit usešŸ˜‚

Take wins where you can since you canā€™t have a cake and eat it toošŸ‘

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