You can do whatever you normally do with a regular lease. You just pay all the depreciation and the nominal rent charge up front. Just tell the dealership you want to do a single pay lease instead of the regular monthly payments.
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The money factor drops from .00143 to .00083 for a 36 month single pay lease. But youāre only financing the residual and not the depreciation, since the depreciation is all paid up front.
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Can you provide evidence of this? That isnāt consistent with how most brands handle one pays.
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I was going by a couple things. First, the article and calculator here. Also, on my own single pay lease of an ID.4, I basically paid depreciation, rent charge (under $60), acquisition fee, title and registration, and sales tax minus $7500 lease incentive.
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Interesting. That is not how the lh calculator calculates rent charge on a single pay, which I donāt recall anyone ever seeing huge discrepancies with, but is definitely worth diving into. Perhaps it is a brand difference.
In a single pay, rent charge should be only on the RV amount as the RV and adjusted cap cost are equal.
Yeah, according to that website, different brands handle it different ways. Some just reduce the MF and calculate it as a monthly lease and add up the payments. That might seem kind of shady because why would they finance the depreciation if itās all being paid up front? Iām guessing if they reduce the MF to near zero it doesnāt really matter either way, though. VW seems to calculate the rent charge based on 2 x RV x MF.
This is my first time doing a single pay lease, so take all of my explanations with a grain of salt, LOL. Just thought it was a āsafeā way to lease an ID.4 in this environment, paying $700 for the option of being able to walk away in 36 months while not having to pay finance charges since the MF on a standard ID.4 lease isnāt great. I sold a car to CarMax to pay for the lease and got to pocket the extra due to the current craziness.
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Hi JTravers,
Do you mind sharing your final numbers?
Thanks
GHTech
These are rough numbers.
If I can locate my documents, Iāll update with better info.
48,800 Adj Cap Cost
22,700 RV
26,800 Total Schedule Payment
_7,500 Lease Incentive
19,300 Payment Due
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It may indeed vary brand by brand!
@JTravers do you mind sharing your deal on SIGNED! so we can take a look? Would be interesting to see what the rent charge was on your one-pay VW Credit lease.
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So $536/mo and awful RV - Hard pass on leasing a VW.
@michael Yes, no problem. Iām waiting for the dealership to send copies of the signed paperwork to me. Iām a couple hours away from them, and they delivered the car to meā¦ probably should have taken photos of the stuff I signed, but I figured theyād send the documents to me within a day or two. Itās been almost a week now, so Iāll follow-up with them.
(Based on some of the calculators Iāve run numbers on, Iām also now starting to wonder if they messed up and undercharged me on rent. No idea how that would happen, but Iām crossing my fingers I donāt hear back from them before I get account info from VW Credit, LOL.)
@michael My inclinations were correctā¦ the finance guy called me to let me know I needed to resign the lease documents bc of some errors that kept VW Credit from funding the lease. But they kept my bottom line payment the same while glossing over their error (undercharging on rent). So I ended up not having to pay anything extra. Even though they didnāt explain what they did, I do appreciate that they made the numbers work for me, while eating the cost of their error. In this crazy car market, they could have easily made me pay the difference or take back the car and resell at a markup.
Nevertheless, Iām going to hold off on posting my numbers until the lease is finally funded by VW Credit, and I get my account info from them.
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