Are these crazy numbers for VW Taos?

Ask the Hackrs
1

Hello Hackers,

I believe my dear friend was taken advantage of by a San Diego VW dealer.
We would truly appreciate your thoughts:

2022 VW Taos S FWD

47 x 358
$3,000 down
12k miles/year

Gross capitalized cost $28,285
Capitalized cost reduction $2,035
Adjusted capitalized cost $26,249
Value of the vehicle $24,661
Residual value $13,218
Depriciation $13,031
Rent $2,841

Base payment $330. Sales tax/use $28 = $358/month

I look forward to your opinions. Thank you.

Tim

2

At rough glance, it looks like quite a bit over msrp. Not really being taken advantage of if one willingly agrees to it though.

2 Likes
3

Not sure how these lease, but at this monthly and term why not just finance it?

But also this has been my answer to everything.

4

Stop Sale was just issues for Taos, just FYI

5

I think AWD only:

6

They sign already?

7

Looks like they did sign, 4 years lease with 3k down for a base Taos. Nothing you can do now, enjoy the car in good health and try again next time.

1 Like
8

Hello friends,

I will appreciate analytical and informative responses, so we understand and some can learn.
I think this an awfully bad deal.

Best,

Timur

9

It is practically impossible for us to tell you what a “good” monthly payment is for your specific lease as lease programs are highly dependent on region, personal qualifications, tax rates, etc.

We always recommend the following method before you ever contact a dealership. If you do all of the work up front, you’ll have a stress free dealer experience and set yourself for success.

  1. Read Leasing 101 (BLOG | LEASEHACKR) to understand how to calculate a lease payment and the variables. Monthly payment is an output, not an input!!
  2. Pick a specific vehicle that you want to target
  3. Gather the current MF, RV and incentives from Edmunds forums for your zip code
  4. Research the LH marketplace and other deals that have been made recently on your vehicle - what was their pre-incentive discount? How did their lease terms differ?
  5. Plug your numbers into the LH calculator (CALCULATOR | LEASEHACKR), and use a pre-incentive discount similar to what you have seen
  6. Create a target deal, this is what you’re trying to negotiate to. You can try different terms, selling price discount, etc. and see how your monthly payment is affected. It is also possible that different trims of your vehicle may have different MF and RV (i.e. this is very common with GM), so make sure that you look into that. Come up with a set of inputs that give you the output that you want - your desired monthly payment.

With a target price determined, you now have a deal to pursue and compare dealer offers against. More importantly, you have a solid foundation to work from.

3 Likes
10

These numbers cray cray …

11

It’s hard to get good numbers on a newly released vehicle.

12

What do you think about this deal its also a 2022 Taos SE FWD $397 down and this is the lease worksheet they provided that I inputted into the calculator. I am not sure if I did it correctly. This is in Texas and they gave me tax credits so I think that was a big benefit. I would welcome your feedback. Also not sure about the stop sale comment above and whether I should be concerned.

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13

You’re paying just under $20,000 to lease this vehicle for 4 years. If you really want it, buy it. Makes no sense to lease on these terms.

14

@bryan41 thanks I hadn’t considered that. Should I just tell the VW dealer to give me a breakdown based on 72 month loan instead? I’m guessing the financing from VW will probably be better than any other financing most people can get because their interest rates are so low?

15

Right. It’s hard to know whether to buy vs. lease in this situation without more details. I imagine the TX lease tax credit would not apply to a purchase.

The calculator link shows a MF of .00150. Is that something you estimated, or is that from the dealer? That’s quite a mark-up from the .00060 offered through VW Credit for excellent credit.

Also, is this lease through VW Credit or a non-captive bank? VW Credit has a $699 acquisition fee, rather than $675.

16

The sheet shows a 39-month lease, so the total cost is more like $15K. But, agreed, worth exploring the buy option as well.

17

MF was estimated. I did see the 0.0006 for excellent credit (which is the correct category) from Edmunds but I couldn’t get the math to synchronize without estimating the MF. This lease was from a VW dealer but I dont know whether it was VW credit or a non captive. I just tried to capture in the calculator what the Sheet said .

Correct this was for a 39 month lease.

18

Ah, the 39/12K month residual is 56%, not the 58% which is for 36 months.

Looks more like a .00110 MF, rather than .00150 MF. The marked up money factor nearly offsets the entire dealer discount.

19

In the future, if you can’t get the numbers to make sense, rather than estimate, find out what the missing pieces are. When you start estimating things, you put yourself in a position where you’re trying to evaluate a non-existent deal. It’s the ultimate strawman.

Alternatively (and superior-erly), if you put together a target deal before talking to the dealer, you can always tell if something is a good deal, as you have a baseline to compare against.

20

This is super helpful feedback @mllcb42 and @michael692 . We havent signed the deal yet, and I am wondering what i should do next to improve this deal? ‘

The one good thing I was told about this deal was that I WAS getting tax credits and a few other dealers could not match this deal already. You wouldn’t believe one deal I received from a dealer had 7500 down, 7500 miles and 534/month for 36 months, and then I showed that dealer this deal (despite them being criminals for proposing such a bad prior deal) and they said they couldn’t compete because the tax credits….

  1. Should I go back to them and ask what MF they are using?
  2. I am looking for a great DFW broker to work on this deal and a deal on a BMW 740i.

FYI @michael - - I was given the Residual from the dealer as $16340.24 so I calculated that as 58% because I used the adjusted price $27929 after discount as the denominator. Now I am guessing that I should have used the MSRP of $29179 to calculate the Residual as 56% .