Lease of an ID.4 in MA. Looking to buyout right away as a means of capturing the $7500.
2022 ID.4 Pro S SUV RWD
MSRP: $49,610.00
Selling Price: $46,110.00
Rebate: $7,500
Gov’t Fee: $135
Poc/Doc Fee: $445.00
Gross cap cost: $47,389.00
Cap Cost Reduction: $7,500.00
Adjusted Cap Cost: $39,889.00
39 Months @ $647 - $657
Thoughts? I am 100% new to leasing.
So then the actual lease is irrelevant. Main consideration is how much discount you can get, even if they mark up the MF.
Check the Marketplace as always to see what % discounts are being offered there.
Sorry if this is a very dumb question, but when buying out the lease do you pay the remainder of the total payments + residual?
The payment amount and remaining payments are not important.
Focus on adjusted cap cost and current payoff for buyouts
Generally you pay the net or adjusted cap cost, less N times the depreciation portion of the monthly payments you’ve paid.
So if a lease payment is $330 ($200 depreciation + $100 rent + $30 monthly tax), then your payoff goes down from the adj cap cost by $200 every month.
Having said that, everyone needs to look at their contracts because some lessors are starting to introduce early buyout fees.
How do I know what the current payoff for buyouts are?
Again, apologies total noob. I owe you all a beer.
Wow, looks like buyout is the only way to go. We test drove one of these (and liked it) but didn’t realize the MF was over 7%!
Check out the structure of my deal. I posted mine and a few others have too. I think you can get or ask the dealer for 4k off sticker for either a 2022 or 2023. I recommend finding a 2022 as the sticker was a lot less for the same car and savings will be more.
Within the first month, your pretax payoff should be very close to your adjusted cap cost.
Obv you’ll need to pay TTL, either on top of the payoff to VWFS or directly to the RMV.
Would love to better understand this
The easiest way is to ask the lessor. That’ll give you what the payoff is at the tome of asking.
If you want to calculate it, most leases use an adjusted lease balance to establish the current payoff amount where each month, the adjusted lease balance is lowered by the depreciation portion of the lease payment. This base, depreciation only payment rate will be listed in the lease contract. The buyout is then the adjusted lease balance plus any applicable taxes/fees.
The adjusted lease balance will be equal to the adjusted cap cost initially and equal to the residual value during the final month of the lease.
I am not sure the lease buy out would make sense on an ID4. A 2023 would qualify for the credit unlike other EV’s. There are a lot fees to put a lease in place and you will just lose that money. Also your buyout would be a “used” car so you might lose state incentives. The new Mass. climate law has generous electric vehicle rebates. Here's what's currently available for residents | WBUR News
If you are worried about getting the tax credit faster, you can always adjust your with holding to pay zero for the next six months. I am assuming you pay $7500 in taxes per year.
You would have got those state credits on the lease though.
What is “this”? Which part did you not understand?
You can’t just post a gif and laugh off the apparent 0 effort here.
Trying to understand the acronym TTL, sir
Tax, title, license.
Thank you!
2022 ID.4 does not quality for fed tax credit because it’s not manufactured in North America. The only way to get the $7500 is thru lease. 2023 makes more sense to buy/finance as it’s made in the US and qualifies for fed tax credit. There are some minor differences between the '22 and '23. I would see if the '22 has a heat pump. That would be nice to have in New England over a '23 that doesn’t.
Some of the 23s have better batteries that accept a greater DC charge rate, if that’s an important factor to the person considering between the two.
Hi friends,
New to leasing and shopping for an ID.4 to take advantage of the $7,500 passthrough. Want to buy out the lease almost immediately so I am not getting raked over the coals on MF. Located in Massachusetts.
With VW leases, when I attempt to buyout am I just paying total residual + total depreciation? The dealership was unclear and said I’d need to work directly with VW on it.
Here is the deal as it stands…
MSRP: $51,496
Selling Price: $50,113
Money down: $3k
Rebate: $7,500
Total Cap Cost: $41,118
Residual: $27,807
Monthly Charges
Depreciation: $341.80
Service Charge: $349.46
Sales Tax: $43.17
Payments
39 months @ 733.93
Link to sheet: https://imgur.com/a/9oV0bny