VW ID4 lease followed by buyout - help me understand this deal!

This is not true. I did the buyout with VW Credit even before my first lease invoice came in the mail. My credit union already sent VW a check for the buyout. It was a super easy process.

The dealer wants you to wait 3 months because they lose the financial bonus if you pay it off in 3 months

@carcar95 @SoC I went to the dealership today and I’d really appreciate your help verifying my numbers below before I pull the trigger. They have a Pro S with an MSRP of $50,290 and selling price of $48,581. With the $7500 rebate, the total capitalized cost is $41,081. With zero down, the lease for 10K/36mo is $680 before taxes, and the residual value is $27,157, and the money factor is 0.0031.

Now, is this formula for the total cost correct if I buy out the vehicle immediately after signing the lease? (assuming 9.5% sales tax)

((lease amount - monthly rental charge) * 36 + RV) * 109.5%

And how do I calculate the monthly rental charge? I found online that it can be calculated as (Adjusted Capitalized Cost + Residual Value) x (Money Factor), but I’m not sure what the adjusted cap cost is in my case.

Thanks in advance :pray:

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Post a link to your best attempt at the LH calculator.

Here it is, but something isn’t quite right. The lease is $680/mo before taxes, but the calculator is showing $679 incl. taxes.

My deal from last month might also be helpful. Buy out was super easy did it within two weeks of signing.

https://forum.leasehackr.com/t/signed-my22-volkswagen-id-4-pro-s-rwd-502-mo-das-2200-39m-10k-mi-msrp-48k

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Your calculation isn’t correct. Incentives are usually taxed and why are dealer and government fees $0?

I know it’s not entirely accurate, but I don’t have a breakdown of all the fees. I estimated the government fees at $699 and the dealer fee at $499 and got something close to the number they gave me. The $7500 incentive is the EV lease bonus. Is that taxed or not?

Here’s the updated calculator: CALCULATOR | LEASEHACKR

I believe it is taxed

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Thanks. I want to make sure I’m calculating the buyout correctly. Is it roughly (selling price - $7500) * sales tax? It seems to be around that in your case, but you had an additional $500 incentive.

You will need add the government fee, dealer fee and acquisition fee and rental charge for the 1st month (about 211/m for u) if you buy it out within 1st month. I paid 2 months worth rental charge. Just got title (about 4 weeks after sending payoff paperwork to VW). Sorry that is your total cost. You are correct about the buyout cost roughly

Been in contact with 5 different VW dealerships in the last few days, and finally signed what I think is a pretty good deal on a Pro S RWD: $2150 drive off including first payment, $560/mo before tax (36mo/10K), and $27,157 RV (54%). Will be sharing the payoff amount in the next few days.

Thanks everyone for your help :pray:

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We can do 10% off with a 40 basis bump for anyone interested.

Dc area.

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Congratulation. As long as you negotiated the sale price significantly, the MF has little impact even if there is mark up.

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That is a good deal with immediate buyout. I got about 2500 off MSRP.

ID.4 AWD Pro

That’s the configuration and its headed for dealership.
For a Texas resident, does it make sense to get it? No need of a car, this is purely from flipping standpoint.

Without any credits, you’d have to pay tax on selling price.

That plus acq probably destroys any chance of flipping for a profit.

Thank you @max_g

Mine is a little similar like yours. RV its same :slight_smile:

ID.4 AWD Pro

Texas lease with reduced sales tax (1.25% tax)
41262da3e68808ee9e31c4d9214f3710dc700d20-14

Not sure if there is any profit potential.