I live in Corona CA. Planning to lease Volkswagen ID 4 and buy out immediately. Can I do the lease online? Or do I need to visit many dealers to compare Money Factor rate?
I want to lease the ID 4 at MSRP to capture the $7.5k fed tax credit. Then buy it out immediately. How can I finance my buyout, with different bank for new car loan?
I heard that if I drive the car under 10k miles I can use new car auto loan.
Thanks guy
I think, ypu need to do some homework first, we will not do it for you. Did you visit the website at least?
You can fill out the credit app online, but delivery has to take place at a dealership. Maybe one of the brokers in the Marketplace can arrnge delivery, but you’re dealer-shopping correct.
You will probably need to wait roughly a month for the tag work to be completed and title recorded. If registration doesn’t convey/transfer then I’d wait until it’s up for renewal in a year.
Check your bank and credit unions: you (most likely) cannot get a new car loan once it’s titled for the lease, but many lenders have a product for used cars that are low mileage/a couple years old/just off lease. Get your FICO score and do some research to compare rates.
Other than the 7.5k credit you will lose on the $625 Acquisition Fee. (I can’t remember if you get charged Disposition on a buyout).
As well as a double hit on your Credit Score. (Hopefully you are above 800?)
Source please? Why not check with your current banking institution?
You can reach out to dealers and make them an offer.
You may want to consider just riding out the lease instead of paying it off immediately. First, you save no interest paying off your lease early. Second, since you don’t save anything by paying it off early you can take advantage of 3 years of information before deciding if you really want to buy it out. Maybe you get into the vehicle and decide its not for you. Or you get in an accident and don’t want to take the equity hit for a repaired vehicle, etc, etc, etc. Then at the end of the lease if you still like the vehicle you can buy it then.
Couple caveats to that plan: first, interest rates could go up between now and 3 years from now causing your buyout financing to be more expensive. second, many lenders have an increasing interest rate scale based on model year so you may not qualify for the absolute lowest used car interest rate in 3 years compared to today. However, typically that difference is rather small.
Just something to consider since a lot can change in 3 years and you don’t save anything paying the lease off on day 1 versus day 1,095.
You do if the mf is high and your financing rate is low.
How so? A lease buy is remaining payments plus residual. So if I have a $300/mo lease with a $15k residual then if I buy it out on day one I pay $300 * 36 + $15k = $25,800. If I pay it off after I pay my 36 payments then its $300 * 36 + $15k = $25,800. Maybe I’m missing something so help set me straight!
The rent charge for the remaining months is subtracted
Ah, thanks for clarifying that. I didn’t realize they did that. For my Ford lease, they didn’t do that.
Ford does charge full mf even if the lease is terminated early? Never knew that.
You may have had an effectively 0 MF?
Don’t walk in to any dealership without an agreed price and MF. Going to be difficult to achieve that since most dealerships mark up the ID4. Also not having an order from VW and being in California makes it even more harder. Make sure you know the buy rate MF before you agree on anything. You can buy out your lease anytime. Not sure if you can get a new car loan rate for a leased ID4. Been 6 months since I took delivery of my ID4. It has been problem free so far.
I disagree, go in with an agreed PAYMENT. They can always slip something in at Finance even with a Price / MF.
You’ll know how much your payment will be if you know the buy rate MF and the price you’re willing to pay. Negotiating with a dealership how much the payment will be is just setting yourself up to get played.
Where did I say that. You said
I said don’t walk into any dealership without a PAYMENT. That’s a big difference between my statement and yours. You made an assumption that was the only thing I did to get a payment. But walking without knowing what your payment is, it’s just plain wrong. They can screw you so many ways after a price / MF. You need to know what your payment is before you walk in. (And of course you use the calculator here to see if the Price / MF are good as well)
Not going to get into a pissing contest. Have a nice weekend.
If you’re going to immediately buy out the lease, just do a single pay lease instead. There’s no rush to buy out a single pay lease since there’s virtually no rent charge based on how VW calculates it. This way you can keep your options open, get the $7500 incentive, and not pay an excessive MF.
How can i do the single pay lease? Can I finance the buyout at the end of lease?
Thanks
Just wondering if someone might have approximate numbers a regular lease vs. a single pay lease.