$7,500 on leases are back!
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I will need to calculate all the costs, MF, Residual, etc. if you are forced (and you are) to do 12 payments. As I mentioned before, while it seems you can get 7500k off,
you actually may end (after all fees, interest, residuals that VW set, etc) with maybe 1-2K in benefits. While still better than 0, but much less tempting than
7500
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I don't have the exact numbers for my lease, but I leased a 2021 RWD Pro S in June 2021 at MSRP. I believe around $45K. I got $10K cap reduction ($7500 fed, $2500 state). After 1.5 years of payments I paid off the lease. The buyout amount was $26K. All-in, Down payment + lease payments + buyout was ~40K, so looks like I ended up paying $5K in interest over the 1.5 years.. Seems like a lot.
I just did this above with all the costs. You gain about $3600 if you buyout after 1 year, compared to no $7500 on purchase. This is with the current VW MF which equals 8% interest.
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Well, look at post #43 - he paid 5K on top of the car price after 1.5 years (and in 2021 the interest was extremely low). With 8.5% interest on current leases, this will be ~5K for just 1 year. And the AWD Pro S is 51K. So overall, I think it will be less than 3,600 but will know for sure after the dealer will give me a formal lease term.
Those are both not true. The interest from VW credit is currently 8% (unless your dealer is marking it up), and will cost $3000 in interest on the 49k principal in 1 year. (you have to subtract your downpayment and first payment from the 51k.) There are plenty of online loan calculators to verify this is correct. No need to guess or make up numbers.
$699+199 of that was your lease acquisition fee and disposition fee which you can't call interest. I accounted for those in the calcs. I did above. And the 2021 MF on leases was not "extremely low" since VW allowed dealers to mark up the MF. My lease 11 months ago was at 6%. They have now limited dealers from doing that markup, making the lease rates only rise to 8% even though interest rates rose much more.
FYI, when I did my MY21 lease, the buyout fee was $395 (lease acq fee $699, as others have mentioned). Also, VW Credit reduces the MF by .0006 for a single pay lease. Pretty good reduction when I did it 15 months ago but not really that great now.
Why not? It only means you can't buy out within a year. One pay saves you from high MF.
It doesn't hurt to ask the dealer's finance dept. for it if you like that. Many of the terms have changed now. One pay seems worse than a buyout after the 1st month or even a year, since one pay you pay all the payments up front plus MF interest for the 3 years, while with a buyout you stop paying interest completely so the MF doesn't matter.
When you buyout on a single pay lease, VW refunds the prepaid interest that is being forgoed.
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Happened by my dealership yesterday and the day before they got in the exact 2022 blue Pro S I'd ordered originally back in March, and the customer released it. My 2023 just got pushed back again to April 2023. My dealer said hey, we just got this memo saying all 21,22 and 23 models are eligible for the $7,500 discount on the lease. We ran the numbers, it knocked the price down to $40k, and we signed and drove away. My new ID4 is sitting in my driveway right now.
So yes, legitimate offer!
Oh, and we were nearby as we had test driven the Model Y for the first time (it previously hadn't been in our price range). Thought we would be blown away but were REALLY disappointed in that car. Several reasons but primarily they got rid of any dash display, so to even see your speed you have to look over to the big huge center screen. Didn't like that everything (and I mean everything) is controlled via that screen; you have to go through a menu system just to adjust your mirrors. It was zippier but I'm coming from a '13 Outback, so just about everything is zippier than that
So yes, legitimate offer!
Oh, and we were nearby as we had test driven the Model Y for the first time (it previously hadn't been in our price range). Thought we would be blown away but were REALLY disappointed in that car. Several reasons but primarily they got rid of any dash display, so to even see your speed you have to look over to the big huge center screen. Didn't like that everything (and I mean everything) is controlled via that screen; you have to go through a menu system just to adjust your mirrors. It was zippier but I'm coming from a '13 Outback, so just about everything is zippier than that
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Oh and we did the 39 month closed end lease, with the buyout price as $22k at the end of the lease. They threw in 5 years of maintenance and the warranty is good for 5 years now, so we're essentially no cost throughout and beyond the lease if we purchase, which at this point we plan to. Our monthly payment is about $630 with the lease BTW at 39 months on a $40k purchase price.
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Glad you were able to get that $7500 off the lease. Does you paperwork say anything about early buyout of the lease? In the past you could buyout a VW lease at anytime. However it has been posted that you have to wait at least 12 months before buyout due to the $7500 credit.
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I'll have to double check but they verbally said we could buy it out whenever. This '22 is German made so wouldn't qualify anyway for any other credits anyway...
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Looks like it’s around .00365
Something with this doesn't make sense. Why even quote a reduced MF for one pay? if they are refunding all interest when you one pay then MF doesn't matter. Same as a buyout after 1 month.
No difference if your car is totaled for purchase outright. Also, there's a reason why GAP insurance exists.
I did some quick math, 39 x $630 = $24570, +22000 residual, = $46570. Assuming they took $7500 off from your lease, it was $40k + $7500 = $47500 MSRP. By leasing route, you only saved $1000?
I am very interesting on this topic, as I am planning to do the same. One pay will save on MF during the first 12 months. Your statement is correct if you could buyout after 1 month. In this case, VW Credit does not allow buy out within the first 12 months. Meaning, VW Credit will collect interests for the first 12 months of payments. This is my understanding on this.
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