Hi, all. I’ve just moved to Seattle from Japan and am looking to lease a vehicle. Likely a VW Tiguan SE, though I’m also looking at Toyota Rav4, and any other vehicles in a similar price/size range. Been pouring through this helpful forum. But I have some outstanding questions:
Is there a way to decode the cash incentive language provided by dealers? For instance what does “KOS” mean in this $2k Cash bonus language from VW? The dealer is trying to tell me that I cannot combine this offer with their subvented lease and I’m trying to validate that.
KOS 0. Vehicles enrolled in the VW Customer Mobility Program and sold as KOS 6 or 9 are eligible when using Standard Used/CPO rates only. This bonus is not compatible with the following programs: Fleet Program (KOS 5) and Dealership Sale Program.
I’ve subscribed to the leasehackr forum so I can get access to Rate Findr. Is there a way to see a list of all manufacturer’s residuals, money factor, etc. listed somewhere or is that proprietary knowledge? I’m not loyal to any specific car company or trim, I’m essentially just looking for the best possible deal on SUVs in a similar price range as VW Tiguan or Toyota Rav4. I think I’ve already determined that I’ll get more competitive pricing on Tiguan due to the money factor being offered right now. But seeing a list of these lease variables by manufacturer/trim, would help narrow down my search.
Yes, you’re right the calculator did mute out the cash incentive when I selected the subvented lease type. I was just trying to see if I can decipher the code used in the terms posted online.
I have 2 competing offers from VW dealerships in the Seattle area (where I’m based). Both are for a Tiguan SE AWD, 15k/36mo.
Deal 1 has a total payment cost (monthly + DAS) of $19,288 versus deal 2’s 20,717. So obviously deal 1 is better.
However, I’m trying to (A) validate if this is a good deal, and (B) understand why I cannot tie the financials shared by the dealerships to the leasehackr calculator or my own manual excel I’ve made to re-create the math.
I’ve attached below (1) a screenshot of the terms from deal 1, (2) a picture of the print out sheet for deal 2, and (3) screenshot of my manual excel.
Here is my attempt at re-creating deal 1 in the leasehackr calculator. I can’t figure out why the calculator monthly payment comes out to $493, my manual excel comes out to $529, and the lease terms from the dealer come out to $485. All different!
Similar story with deal #2 (leasehacker link here) – calculator says monthly is $461, the dealer sheet says $525.47, and my excel says $604.29.
I’ve been staring at this for far too long, so apologies if I’m missing something basic here. But my gut is currently telling me that the deal sheets they’ve given me are withholding key information and I won’t fully understand the ins and outs of the deal until I see the final purchasing contract. So any guidance on how to proceed from here would be great.
Your spreadsheet doesnt seem to account for tax on the upfronts, only the monthly.
Why are the rebates different between the two?
Where is the dealer doc fee for the 2nd dealer?
Regarding note in your spreadsheet about the dealer add ons not going into msrp, msrp is based on what is on the window sticker from the manufacturer. Dealer add ons dont get residualized generally, so not part of the msrp.
This happens all too often with dealer worksheets. Consider deal 2. How did the dealer arrive at an adjusted cap = 37456.06? How did they arrive at a monthly payment = 525,47? Like you, I get a base payment of 546.87. What fees are being capitalized? What are the taxable and non-taxable fees? The dealer worksheets are missing a boatload of information, and the payment calculation is suspect in deal 2. If you wait to “fully understand the ins and outs of the deal until I see the final purchasing contract”, you’re too late and are dead in the water.
Honestly, these people are give a shits and don’t take the time to do things correctly. They don’t take pride in their work. Personally, I wouldn’t do business with either dealer because they’re sloppy. Then again, sadly, it’s the way most of them do business.
Your mistake is that you are trying to decipher a dealer’s worksheet which is pure garbage to begin with. Don’t chase after the dealer. You’re allowing them to control the deal. Bad idea. Let them come to you. Create a target deal using a flawless smash mouth knock 'em dead professional-looking lease proposal like the one below that is the envy of the entire free world!
Before you can do this, you need to research selling price and collect and vet all useful information such as MSRP (window sticker), acq and doc fees, title/reg/license fees, sales tax rate, (rebates/incentives, money factor buy rate, residual factor, - check Edmunds or, better yet, use LH rate finder since you are a super supporter). And by all means, know how your state/local jurisdiction computes tax. All data and calculations in your proposal must be dead on accurate otherwise, you and your proposal lose credibility. You have to take these poor souls by the hand and guide them. You be the EXPERT!
You’ve put a lot of effort and hard work into these deals, and I would hate to see it go to waste. Want help? PM me.
why isn’t it added to MSRP? Because it’s added after the car reached the Dealer. Also known as a Dealer Add on.
Do you really think Splash guards cost $358? Try $35.80
Thank you everyone for the clarification that the dealer add-ons are not part of the MSRP, and do not get residualized.
Sounds like I have a bit more homework to do in order to get a good price here.
@delta737h I will be taking you up on your offer to DM! Really appreciate your response. It’s refreshing after a week of toiling over understanding the way this game is played (smoke and mirrors).
I’m a little hesitant to go the EV route because I just moved back to the states, and don’t even have a permanent place to live (I’m in temporary company housing). I’m likely looking to rent an apartment or small house, and I’d rather not limit my housing search based on a requirement for charging.
Also, based on quick research, it seems like the gas savings from at least a hybrid typically isn’t worth the markup in MSRP. So is what makes it a better lease deal typically is that it has better manufacturer or government rebate/incentives?
Look at Marketplace listings in California such as this to get an idea of what’s leasing well at any given time
You also have to ask yourself how much extra you’re wiling to pay to put a brand new car in your driveway every 3 years as opposed to a lower annualized cost by owning for 4-5 years at a time.
I’m leaning towards lease (and that’s where I’ve spent a predominant amount of time researching), partially because I don’t know how long I’ll be staying in the US. Likely trying to move abroad again in 2-3 years.
Then you’ll need to make sure you move within a short window of your lease ending.
Early termination has penalties, if you need to leave before the lease ends.
OTOH, most lessors don’t allow an extension beyond a short period of time of the lease ending, if you’re still here and needing a car. Then your choices become signing a new lease and being subject to early termination penalties of the new lease or renting at possibly exorbitant rates.
