Is this a good offer on leasing a GLI?

Hi,

I am so glad I found this site. It has been tremendous resource for me. I am trying to lease a VW GLI SE 2016 and got a quote from one dealer so far. I am working on getting few more.

Is this a good offer? I looked at True Car, and the dealer price showed as $27,548. I really want to a good deal on it. Should I wait longer for end of month or end of year? What do you all suggest?

Thank you.

No it’s not really a good deal.

The first problem is that your money factor is severely marked up. It should be .00005, not .00045.

The sale discount isn’t that great either (even though it’s close to the price you saw on truecar). Is there not a lot of competition in your area? Truecar shows average $2600 discount on a Jetta GLI SE in my area, and a dealer is offering a $3900 discount. I’d aim for at least another $1-2k off.

You should be aiming for a payment in the mid 250s.

jmac63,

Thank you for your reply. There are about 4-5 vw dealers here in Midwest. Not sure what the competition level is. That is the first dealer I contacted. I did suspect it is marked up higher than usual.
You are correct, I am looking for around 250$ monthly payment or so.
So should I call them on their money factor mark up? is that negotiable? Should I ask them for dealer discount? Please advice what steps should I take. I appreciate any help.

Thanks.

Hey @MSTUDIO I just leased this car. Jetta GLI SE trim, did everything for basically 280/mo $0 down. I got $3100 off MRSP and the $1000 model year end and I am in the Midwest.

I showed my dealer the California ad for the GLI lease posted in the Jetta thread. If I remember the numbers it was 139/mo + $1999 down + $500 trade in bonus + tax/title/acquisition/fees. The dealer discount in California was over $1000 more than what I got though. But it shouldn’t be too hard to get a number in the solid mid 200s

Yeah I would ask why their money factor is to high. My local VW dealer apparently prefers to run leases through their own financing company, so it’s possible that’s what’s happening with that quote.

Regardless of what they say about the MF, tell them that they are way too far from what you were expecting. There’s no way they’ll go right to $250 from that quote, so just forget about them until the end of the month (if you haven’t already made a purchase elsewhere by then).

@jmac63 @lalib1 Thanks for your replies. I am working on getting few more quotes. According to the above invoice it looks like I am paying taxes on the rebate and the discount. Should I be?

Taxes on the rebate are possible. But it just looks like the total tax you are paying over the length of the lease.

It’s a really weird form they are using, kind of difficult to see where every number comes from.

I got some more numbers from few other dealers. Looks like The residual and the cap cost comes out to be the same or very similar to the numbers above From all of them. So I understand that I am suppose to negotiate down the net cap cost? So should I offer them the cap cost I need so I can be at the monthly payment I want and hope for the best. Is there a reasonable amount I should offer without sounding like I don’t know what I am talking about. Sorry but I am sort of new to leasing and trying to understand how to negotiate.

You could simply tell them the payment is too high, usually they’ll say something along the lines of “so where do we need to be so we can make this work” you can either suggest a sale price of the car that you like that will calculate out to a nice monthly figure or simply quote them a monthly figure with $0down. They’ll either say its not possible or come back with a number $20 or so higher than your number.

Remember, they’ll never agree to a number that doesn’t work for them, so it’s really using the calculator to see what the monthly is at decent sale price on the car then seeing if they’ll come down to it. The rest of the numbers are essentially fixed.

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Here are few numbers that I got out from few dealers after falling of my research mode.
28178.00 Invoice
3000.00 in rebates
16666.20 Res.
0.00035 mf based on credit.
Payment is about 309 + reg. title, tax etc. if I do zero down.

What would be a good number to start my offer under the invoice price that is if I can do that without putting them off.

If this helps I got a VW GLI SEL on the east coast in July for 292 a month with tax rolled in.

For what it’s worth, I just leased a Jetta Sport and your money factor seems to be correct for what VW Finance considers “Tier-B” credit. Apparently VW adds .00030 to the standard A-Tier rate of .00005 to obtain a Tier-B MF of .00035. I found this out after my leasing dealer tried to mark-up my MF to .00070 and I checked with a couple of competing dealers and they confirmed that .00035 is VW’s base rate for Tier B credit.

Of course, if you have Tier A credit, you’re getting ripped-off.