Hi all first post - first time considering a lease too - so please don’t hang me by my eyelids.
I’m in the DC area and for the past 2 or so years I’ve seen banners - from afar - at a VW dealership advertising $89, $99 & $109 leases. I didn’t give this any thought until recently when the need to upgrade from a 2 to 4 door arose. I spoke with 2 VW dealers in the area today and it looks like the assumption for the $89 is a Jetta S, 36 months, 10k/yr, $2,999 down plus fees etc. with the total payment being around $5k. (That doesn’t include first payment.) One dealer said they could put me in a Passat R-Line for $149/mo with $5k down; a little less per for a Jetta SE.
After today’s little trip I turned to the Interwebs and found this site among others to inform potential lessees about the process, tips, gotchas etc. so I’ve been trying to fill in the gaps all evening. (It’s a lot to take in.)
One thing that hangs me up is how to determine the residual value of any given make & model. Is that something dealers give out freely/easily?
My objective is to get a temporary A to B car with a low monthly payment and minimal down for the next 24 months. But I’d also like some creature comforts. Continuing with the Jetta SE example, it seems to strike a decent balance between features and overall cost vs the R-Line.
Note, I don’t have a preference for VW’s: This dealership is right next to the highway and ~$100/mo lease is attractive. I also just learned there are some Elantra SE’s going for $115 (36 months @ 10k/yr with $1k cash down plus $115 first payment and 0 security deposit) so I’ll be checking those out too.
Bottom line, I’m just trying to find something in that advertised price range without sacrificing a kidney, if such a unicorn exists.
For what it’s worth: great credit, no debt, drive less than 5k/yr, currently in a 2005 Solara MT base model with 93500 miles that I doubt is worth much.
The residual value is set by the manufacturer/bank, usually on a monthly basis so it can get better or worse from one month to the next, It cannot be negotiated. The base money factor (MF) is also set by them but the dealer can mark it up for profit. It also can change month to month. To find out the base MF and RV% for a particular vehicle you can go to Edmunds car forum or request in the RV/MF section on this site. Generally speaking, those VW leases are not very good, their vehicles have poor residual values and high money factors, and you should try to avoid putting money down on a lease. Read the Leasing 101 on here to learn more.
Yes. My three GM leases I picked up a few months ago, were all crazy cheap, all 15k a year/24 month. The Trax was $615 single pay, resulting in $25.62 a month, the two equinoxes I picked up, one was a single pay, the other was a monthly on a demo/loaner. Resulting in about $70 a month for each Equinox. Crazy stupid cheap.
So yes they are out there, you just have to sit tight and search for them.
@adamcar wow you’re right: crazy stupid cheap! If you don’t mind my asking, what was the cap cost and what was the reduction? (Just to give my brain some figures to ponder on.). Is this common for American cars or do imports see reductions like that too?
@vhooloo yes I hear you on that. Anything beyond $1k really puts me off.
The good news is I’m not in a rush so I can sit tight.
@Raven yes it’s the wearing them down part that’s a new concept for me. I always go into this thinking “it is what it is” and I’m basically powerless, with very little wiggle room: “What can I do or offer to get what I want?” Negotiating car pricing and terms is definitely not my strong suit.
Search for “How to negotiate” in this forum. There are at least two very good threads.
PS: Keep in mind the best Chevy deals (<100) in March are gone. Those had 3,000 conquest money plus other rebates to get that low. You’ll have to be realistic. If the RV and MF haven’t changed, you can try to replicate Raven’s deal on the Elantra.
@max_g That will be tonight’s evening reading
I’m in no rush so I’ll keep my eyes on the forum and ears to the ground for upcoming promotions and jump when I see something that makes sense.
