[SunWizard]

Another thing that I got through the rep was, no interest will be refunded for leases.

They never refunded interest for leases, even on mine 11 months ago. They simply don't charge any additional interest on it after you buyout. So asking about refund is the wrong question. The question is how do they compute the buyout amount. Mine was residual value + remaining principal + sales tax +$199 disposition fee.

 

[JTravers]

They never refunded interest for leases, even on mine 11 months ago. They simply don't charge any additional interest on it after you buyout. So asking about refund is the wrong question. The question is how do they compute the buyout amount. Mine was residual value + remaining principal + sales tax +$199 disposition fee.

Exactly correct 👍
The only time there would be a refund of interest is on a single pay lease — which I have firsthand experience with and contract language for. But if you’re buying it out early, there’s no reason to do a single pay.

 

[surprising]

Exactly correct 👍
The only time there would be a refund of interest is on a single pay lease — which I have firsthand experience with and contract language for. But if you’re buying it out early, there’s no reason to do a single pay.

When I paid off my ID.4 lease, there was a line item with some refund amount, but I don't recall what it was.

 

[JTravers]

There are many different data points so far. Some said tax will be prorated and refunded, now this VW rep is saying no.

My plan is to lease and get the tax credit, as my tax situation will not allow me to claim 2023 EV tax credit. So, the best course of action for me is to put a substantial down payment, like a one-pay. Then the tax on the lease monthly payments will be a lot smaller, while able to get the $7500 lease credit now.

Interest is prorated and refunded on a single pay lease, not on a monthly lease. On a monthly lease, the remaining interest is simply forgoed if you choose to buy it out.

Putting a massive down payment on a lease is just asking for trouble. At least with a single pay there is wording in the contract to refund the prorated single payment back to you in the event your car is totaled. With a monthly lease, you would lose that entire downpayment.

But obviously do whatever you think is appropriate for your financial situation. Even if you can’t buy out the lease for 12 months (which I am still skeptical is actually true), you’d still save more in interest with zero down payment and buying out after 1 year than making a huge down payment and sticking with the lease full term.

 

[Babaji]

This set of posts is more useful than any of the 3 stealerships I have asked. Even tried calling VW and got a run around with no answers.

Has anyone leased (especially after $7500) and can they post their de-identified lease agreement?
Anyone done an early lease buyout and post those papers de-identified or the numbers?

 

[michael.gwynn]

tons of great info here, ty everyone!

going in to wrestle with the 'debil' this Saturday afternoon, which is THE worst possible day...

pros s +

wife wants Galaxy, but i will fight to the death for Cosmic...

guess who will win

 

[oceanstater]

Similar debate here. Local dealer has a nicely accessorized 2022 AWD Pros S on the lot marked down to $49,500 that I'm sure they would love to unload. With the current $7500 credit available on a lease (plus $2500 state rebate) doesn't it make sense to go that route and then buy out the lease within the first month (I have financing lined up at 4.7%)? Seems I would just lose out on an acquisition fee and interest on a month of the lease, right? Or am I missing something? I've never leased before so this is a bit new to me. Thanks.

 

[SunWizard]

Seems I would just lose out on an acquisition fee and interest on a month of the lease, right?

Yes, almost. It costs the $699 acquisition fee, and a $199-399 disposition fee on most leases. It makes sense if you don't have enough tax liability to get the $7500 on your taxes. And if VW lets you buyout quickly, a few recently said they changed the fine print to require holding the lease a year.

 

[dkuryente]

I am curious to find out if those who got the lease credit will at some point receive a 1099 from VW?

 

[HL1315]

I'm new to the idea of leasing, but I'm inquiring a bit in case a decent deal on a '22 appears. One dealer recently gave me a rather opaque quote (still waiting for clarification). I expect an acquisition fee and probably a disposition fee to be listed, but this has "Admin" of ~$900, then "other taxable fees" of more than another $900. Note that the "doc fee" is listed separately, so that must not be included. Seems way too high, right...or is this the norm? thanks

 

[GreyID4]

Similar debate here. Local dealer has a nicely accessorized 2022 AWD Pros S on the lot marked down to $49,500 that I'm sure they would love to unload. With the current $7500 credit available on a lease (plus $2500 state rebate) doesn't it make sense to go that route and then buy out the lease within the first month (I have financing lined up at 4.7%)? Seems I would just lose out on an acquisition fee and interest on a month of the lease, right? Or am I missing something? I've never leased before so this is a bit new to me. Thanks.

My dealer told me to get $7500 credit for leasing, I would have to keep the lease for at least 12 months at 8% interest rate.

 

[Babaji]

Please read this from Volkswagen credit. We just leased starting this past Saturday. Lots of rumors floating on this forum that are rumors only.

 

[oceanstater]

Great to know. I'm heading to a dealership today to look into it as well. Can you share some specifics numbers, namely what fees they're hitting you with up front and what fees they're getting at the early buyout? Thanks.

 

[Babaji]

Great to know. I'm heading to a dealership today to look into it as well. Can you share some specifics numbers, namely what fees they're hitting you with up front and what fees they're getting at the early buyout? Thanks.

There is a $699 lease fee, $395 disposition/lease buy out fee. I leased at $2100 below msrp. No focus pocus. I can send you numbers later this evening.

 

[tmoney]

Please read this from Volkswagen credit. We just leased starting this past Saturday. Lots of rumors floating on this forum that are rumors only.

View attachment 20600

Is this language from VW Credit?

Does the purchase price include all full payments or will the remaining rent changes be credited back?

 

[SunWizard]

The $699 lease acquisition everyone gets forced by VW credit. My disposition fee is $199, and it varies by dealer.

 

[oceanstater]

Just got back from the dealership and have numbers:

They confirmed that there is no restriction on early buyout nor do they charge a disposition fee if I am buying it.
So, buyout price after a couple of months (assuming it takes VW Credit that long to post the numbers) is residual value + 34 payments of $78.94 + sales tax. Thoughts? Suggested items to negotiate?

 

[SunWizard]

They confirmed that there is no restriction on early buyout nor do they charge a disposition fee if I am buying it.

Those are both good news, and saves the $199 disposition fee compared to mine. Looks like a good deal and should help move those 2022s.

 

[AnKurler]

WoW, $3400 off MSRP, that is great!

The money factor should be 0.00323, so it looks like they marked up that a little bit.

Just got back from the dealership and have numbers: View attachment 20626
They confirmed that there is no restriction on early buyout nor do they charge a disposition fee if I am buying it.
So, buyout price after a couple of months (assuming it takes VW Credit that long to post the numbers) is residual value + 34 payments of $78.94 + sales tax. Thoughts? Suggested items to negotiate?

 

[Babaji]

Just got back from the dealership and have numbers: View attachment 20626
They confirmed that there is no restriction on early buyout nor do they charge a disposition fee if I am buying it.
So, buyout price after a couple of months (assuming it takes VW Credit that long to post the numbers) is residual value + 34 payments of $78.94 + sales tax. Thoughts? Suggested items to negotiate?

Looks great to me - Get it before it is gone. Btw drives well in snow. Ride smoother than our Mach E. There do not seem to be any extra charges.