Hello All!
My name is Joe and I have been following this site for the past few months.
I am 17 moths into my current 3/36 Jetta Sport lease. Current payment is a mess due to rolling a GLI (that broke just out of warranty) in in the midst of the VW diesel-gate issues - but I digress.
I miss some of the fun aspects of the GLI/GTI line and was really hoping with recent incentives on GTI’s I might be able to manage to sneak back into one at a nearly cost neutral transaction.
Current info - still owe 19k on my car (payoff quote). Working on getting quotes for its value, but my assumption is that will make me a very sad panda when I find out! Current payment ~$426.00 so I have some room to work with here - but my fear is it wont be enough to absorb the negative.
I looked up some GTI’s in the area and the SE that I am looking for appears to have about 6k in incentives.
http://www.minutemanvw.com/new/Volkswagen/2017-Volkswagen-Golf+GTI-a4017d880a0e0a1748743f96a4ac06cf.htm
MF/RV: .00202 MF and 59%
In the calculator that nets me about $360 a month with just first month down. Would I simply adjust the cap cost upward to account for the negative equity in my trade?
Also - are there any, more favorable deals, that might fulfill my desire for a fun sporty car at an even better price?
Thanks for all your help, and hopefully I don’t have to wait out the remainder… silly impatient american problems!
-Joe
No matter what, you have to pay for the current car. You are getting conned into more debt. Live within your means. Stick it out for 19 more months. Then buy something used, cheap, and reliable.
I mean, undoubtedly, that is most economical solution to my problem - and I cant disagree with anything that you mentioned. Although I wouldn’t say I am being conned into more debt, as that implies I would be unaware of the financial implications - I view it more as allowing that debt to happen in exchange for something more fun to spend 2+ hours a day in.
To me it would be looking for a deal that was good enough that it could accommodate the train wreck that is my current situation while affording me something more enjoyable to drive daily.
I am living within my means currently so I am a tad unclear about that - but I get the value in that idea also.
Heck if I stick it out, I have a decent payment range to work with - should be able to get something fun for that money!
By no means intended to be confrontational - just explaining my $0.02!
Thanks for the suggestion!
Joe
If you were living within your means, you wouldn’t have rolled over whatever older debt you had into the current lease. To end your lease, you end up paying the difference between what you can sell the car for and the amount you owe VW. I figure your car is worth, realistically, 10-13k, probably on the lower end. I can buy a brand new Jetta Sport for less than your payoff on the current one. So you pay ~$8094 (gag) to go to the end of the lease and get 19 months of use of the car, or you pay $6000-9000 (probably more like 9k) and you don’t get the use of the car plus you start a whole new lease.
keep rolling neg equity into the next car then rolling more neg equity into the next car isn’t going to take you to the promise land at those numbers. Unless you absolutely hate money, i’d suggest you just stick it out. You can always revisit in a year from now and see how much the difference in payoff to market value is once you paid approx another $5k, maybe at that point it makes more financial sense but at this point it doesn’t look good.
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Understood on all fronts!
I guess my hopes were to get somewhere closer to 14-15k on the trade, but my research is showing not much more than what you indicated … the numbers just don’t seem to be there.
My GLI had a significant malfunction 2 x Injectors/a gasket and a few other issues - quoted in 3 places, around 4-5k in repairs outside of warranty. This was around the time that VW Dieselgate broke, which certainly didn’t help either as the only company who would entertain buying the GLI was VW.
This seemed the most feasible way to escape that while getting into a car with a warranty that I figured I could stick out for 3 years.
So I guess the best option for now is to grind it out and start fresh in 19 months … my initial plan when I took the lease.
Thanks all for weighing in.
Joe
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sorry that there’s no sensible way to get out, but at least for the next 19 mo you can follow this forum and be on top of what’s going on so that the next lease will be a slam dunk.
Hey Joe,
Not sure why everyone is being so critical of your wishes. You very politely explained your reasons, and that you’re financially capable to do this w/o a major negative impact to your life. Everyone has something they spend more money on than they should. If you’re staying within your means and you’ve thought it through, that’s the upside of being an adult – you get to actually do it!
I rolled some neg equity into my first lease in my early 20’s. It was painful, but fortunately the money factor was .00001, so it wasn’t too bad. With your current payment of $426, like you said you have some wiggle room. Quirk is advertising a GTI S for $249/mo 36/10k with $0 up front. Figure the SE adds ~$50-$75/mo extra. That gives you upwards of $100/mo or more to accommodate your negative equity.
Definitely no lease hack, but if it makes you happy and you can afford it, I’d say see if you can find a dealer willing to play ball. Good luck!
@HarryHood is correct, if $ is no issue, keep rollin until you’re happy. Just doesn’t make financial sense.
@holmeyjoe1017 Just a thought…what if you offered an incentive on swapalease or lease trader for someone to take your car lease over? It would have to be thousands for sure to get your car into an effective payment that’s competitive with the other leases but it’s an option (if VW allows transfers, not sure if they do). You’d have to weight that cost against rolling neg equity into a new lease, might be less.
Harry,
I think people missed the fact that I knew it was a bad idea from the get go. I did really try and explain just how bleak the situation was in my first post!
My thought process was very much more in line with:
- I recognize I am overpaying dramatically for my current car due to the previous negative equity.
- I recognize that it will cost me significantly to make a change (I will be overpaying even more)
- I would rather be overpaying for something I enjoy than something I don’t, and for me it might be easier to hold on the new 36 month term which something more fun/interesting.
- I didn’t realize how upside down I truly am!
- Looks like Civic SI’s have some interesting thoughts on them as well.
305:
Either way, the leaseswap idea is interesting… I am fairly confident VW allows that. I would likely need to throw in like 3k to make it worth anyone’s while… and that is the equivalent of lighting 3k on fire I suppose, but lets get the lighter fluid out!
Listen you are all correct that it is much more intelligent to wait it out, but as I said … if it works, I am all for it, and if not I can wait it out!
Thanks again all!
