Lease Deal Assessment 2017 VW Jetta SEL

Ask the Hackrs
1

I just got this lease deal as shown. I have a credit of 639, and was given a concession to Tier 5. Given the time frame I have (Totaled my 2016 VW Jetta SEL) have till Wednesday for the rental. I need to get into a new car ASAP. The Residual is at 47% for the month of May and includes the $750 lease cash. I did get the base MF at .00111 for tier 5. Hopefully, the reduction of MSRP is pretty good.

I got lucky on the total and that the valuation was just over $1343 over the payoff amount which I will use toward a new lease.

I am just trying to assess the quality of the deal.

Thanks for any and all input.

Contract Date: 5/13/17
MSRP: 26,730.00
Residual%: 47%
Residual Value: $12,563.10
Money Factor: 0.00111
Tax Rate: 6.35%
Selling Price: $21,777.67
Adjusted Capitalized Cost: $21,777.67
Base Monthly Rental: $255.96
Base Finance Charge: $38.12

To pay out of Pocket, not to be included in the lease:
Down Payment: $1000.00
Bank Fee: $625.00
Registration: $75.00
Doc Fee: $250.00

Credit came back at 639 from VW Credit.

Reg/Plates would be a transfer not new.
No Etching fee included.
15k Mile lease
36mos

2

Hard to read this on phone. Please write it out.

3

I just updated the post…thanks!

4

too much monies…

5

please elaborate. I know i am getting a hit on the MF, given my credit. What is wrong?

6

Max, what are your thoughts?

7

Despite the not-so-stellar credit and tier 5 MF, the finance charge isn’t costing that much compared to the depreciation (which they call rental here). Arguing over the MF and moving up a tier or two will only save you a relatively small amount of money here.

What really stinks is the residual, and the selling price (cap cost) isn’t nearly low enough to compensate for it. The selling price would have to be 19,763 for your monthly depreciation to hit 200 with 0 down payment and your payment would be 200 + (38 or less if you move up a tier).

Note: Your payment in your first post doesn’t reflect any down payment (AKA CCR AKA cap cost reduction). After 1,000 down your monthly depreciation (rental) charge would be 228.x

8

There are Nissan Sentra and Corolla leases that are below 200. Why not consider those cars?