How is the cost of ownership significantly different if they purchase? It’s painful either way. At least the a lease they have downside protection.
Because you can finance the immediate buyout with a new car loan instead of paying $46k over the lease followed by financing the RV + TTL with a used car loan with a much higher APR. Do the math.
Besides no one needs downside protection for their dream car. Sometimes I feel like this forum is so narrowly focused on leases that they just can’t wrap their head around a different paradigm.
1 Like
100%. My alternative was a safe bet, the Sienna. I know what I’m dealing with, and it’s probably the worst financial decision I have ever made, but this van is so spacious, drives well, and I love the two-tone look.
Just thinking about the current economic conditions, the ID Buzz has potential to hold its value better than the 50% RV over three years.
As a ‘cult classic’ vehicle, I expect to see a surge in demand leading up to the EV lease credit’s expiration this September. To manage the predictable drop in demand that will follow, Volkswagen will likely implement a modest price cut. However, just as Tesla did in 2019, this price reduction probably won’t cover the full loss of the credit, meaning new buyers will still face a higher effective cost.
Furthermore, a weakening US dollar against the Euro and the potential for import tariffs create additional upward pressure on the new vehicle’s price. These factors could, in turn, bolster the resale value of used models, protecting them from steep depreciation.
Give me a break. The MF is 5.95%. We’re talking a couple grand difference if that. In Ca you don’t pay tax twice. To buy any EV in this market is asinine but you keep giving you’re great advice.
Forget Chapstick… If you’re doing an immediate buyout, definitely consider the single pay option. To that end, you may find this helpful…
Single Payment Adjusted Lease Balance Calcuations, Optimality, and Purchase Option.pdf (947.5 KB)
1 Like
Thank you. I just started looking into that yesterday. I just have to ensure the remaining “35 payments” of the lease term get refunded or applied to the buyout. What level is the MF during a Single Pay scenario? 1-2% APR equivalent reduction?
If you read my posted pdf, all will become clear. Check Edmunds VW forums for the MF buy rate (no markup). This rate will be discounted for the single pay lease as long as the discounted MF does not fall below zero. Not sure what VW’s protocol is in that regard or, whoever is your fund provider.
Amen to that!
1 Like