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Discussion Starter · #1 ·
Has anyone leased their ID4 and then bought out their lease shortly after? Was it easy?
 

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When I got the Stinger GT, more than half of the forum members were buying their cars about 2 months after the lease start. In that case, however, the finance terms had incentives for lease but not for purchase.

Doing some reverse engineering for the proposed lease that VW is offering, I find the MF and Cap Cost to be way too high. I guess the low supply affords them enough customers who really want the car badly.
 

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Discussion Starter · #6 ·
Why wouldn't they?
Well in my situation, I already have a $7500 credit coming to me on a Pacifica Hybrid that I bought. I wont have 15K in tax liability so buying the ID4 would be wasting the credit. If I lease it I can get it through VW, but as I travel extensively for work, I will kill the mileage limitation.
 

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Why wouldn't they?
I don't know. I asked the question sincerely wanting to know what would be the incentive to lease a car and then get out of it a short time later. I would assume that there are costs involved in doing that, so what factors would make it worthwhile.
 

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I don't know. I asked the question sincerely wanting to know what would be the incentive to lease a car and then get out of it a short time later. I would assume that there are costs involved in doing that, so what factors would make it worthwhile.
Well, the costs are less than the commonly misunderstood perception that many people have. I don't exactly know the case for the ID4, but as the poster stated, he can't get the FTC with a purchase cuz he already did for another car.
 

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Doing some reverse engineering for the proposed lease that VW is offering, I find the MF and Cap Cost to be way too high. I guess the low supply affords them enough customers who really want the car badly.
I agree that the VW lease is not particularly attractive, but then neither are those on Mach-e or XC-40, two other cars I've considered. Money factor for Ford Options on Mach-e is better, but it's still an expensive lease. I'm interested in lease because I don't want to keep the car more than a few years, but I'll probably end up buying it since I can afford to do that.
 

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Well, the costs are less than the commonly misunderstood perception that many people have. I don't exactly know the case for the ID4, but as the poster stated, he can't get the FTC with a purchase cuz he already did for another car.
OK. That scenario I get. In general, what are the costs involved in getting out of a lease early? Example scenario: let's say I want to get an ID.4 now but expect that I might want to get rid of it in maybe 18 months, would I be better off with a 36-month lease or buying it outright?
 

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Discussion Starter · #11 ·
I agree that the VW lease is not particularly attractive, but then neither are those on Mach-e or XC-40, two other cars I've considered. Money factor for Ford Options on Mach-e is better, but it's still an expensive lease. I'm interested in lease because I don't want to keep the car more than a few years, but I'll probably end up buying it since I can afford to do that.
I agree with you. I can buy it out now or at the end of my lease, I was just thinking that by buying it now, I can take advantage of the really low interest rates on a buy.
 

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Discussion Starter · #12 ·
OK. That scenario I get. In general, what are the costs involved in getting out of a lease early? Example scenario: let's say I want to get an ID.4 now but expect that I might want to get rid of it in maybe 18 months, would I be better off with a 36-month lease or buying it outright?
It works similar to a payoff on a loan. You but it for the net cap cost. VW doesnt charge any hokey termination fees like some leasing companies.
 

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Has anyone leased their ID4 and then bought out their lease shortly after? Was it easy?
If you like paying the acquisition and disposition fees on top of other fees to buy the car. Additionally you are responsible for the entirety of the lease payments plus the residual price. It's not like you can pay off the principal on a loan and avoid the interest.
 

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It's not like you can pay off the principal on a loan and avoid the interest.
You do receive a financial discount for closing a lease out early. For my ID.4 it's roughly $3,600. I'm assuming it's roughly $100/month, which is likely close to the lease finance charges.

Here are the numbers: my lease is posted elsewhere on the forums but the broad brushstrokes were $48K price, reduced cap cost by incentives leaves me with about $18K in lease payments ($590/month) and a $22K residual.

I have a lease payoff quote of $39,8xx.xx, which includes roughly $1,600 in CA taxes. I can't get VW to remove the taxes even though they aren't due if a lessee buys out a lease and re-sells it within 10 days, but if I switch my address to our 2nd home in Oregon it drops to $38,3xx.xx. I have several offers from 3rd party dealerships of $40K+ so I'm tempted to do it that way instead of returning the lease to VW.

I showed my quotes to my local dealership and they told me the best they would do was $33K LMFAO--these dealerships can't help themselves.
 

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You do receive a financial discount for closing a lease out early. For my ID.4 it's roughly $3,600. I'm assuming it's roughly $100/month, which is likely close to the lease finance charges.

Here are the numbers: my lease is posted elsewhere on the forums but the broad brushstrokes were $48K price, reduced cap cost by incentives leaves me with about $18K in lease payments ($590/month) and a $22K residual.

I have a lease payoff quote of $39,8xx.xx, which includes roughly $1,600 in CA taxes. I can't get VW to remove the taxes even though they aren't due if a lessee buys out a lease and re-sells it within 10 days, but if I switch my address to our 2nd home in Oregon it drops to $38,3xx.xx. I have several offers from 3rd party dealerships of $40K+ so I'm tempted to do it that way instead of returning the lease to VW.

I showed my quotes to my local dealership and they told me the best they would do was $33K LMFAO--these dealerships can't help themselves.
Sounds like a lot of DMV and financial institution communications. Why are you not keeping the car past a month?

Edit: I originally was going to comment on the terms but realized I was mixing up early termination with an early purchase.
 

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Yeah, it's going to be a headache. Between selling it back to VW or a 3rd party, I could break even (minus mileage) or make a few thousand dollars for the headache. If I can get out of it without too much hassle and out of pocket costs I'll be happy enough so I'd rather just give it back to VW or another customer looking for an ID.4 FE who doesn't want to get gouged by a dealership.

As for why I'm selling it? There are some teething problems that are likely to be dealt with via software updates that I'm not willing to wait for. This is based on my experience with my local dealerships and their unwillingness to follow through on my Touareg's original powertrain warranty and then the dieselgate extended warranty and less to do with the ID.4 itself.

I've been with VW for decades (exclusively) and the best experience (for me) is when I don't have to rely on their "independent" dealerships to diagnose and repair the vehicles--i.e., when I can fix them myself in my own shop. For someone who isn't bothered by the software glitches, or who has a healthy relationship with their local VW service center, or is willing to see if This Time it's Different (tm), this would be a good fit for them. Most of my opinion was forged with my experiences related to our Touareg. But after trying to drop the ID.4 off for service again today and being told they "don't have the tools" to work on it I'm feeling deja vu. There are several SoCal dealerships that are not exhibiting that kind of behavior based on others' posts in here but, for me, the holistic experience (car+support+customer service) is not something I'm interested in reliving. It's entirely possible all the problems go away with the first OTA and I never have to step foot inside a dealership again but right now the 3rd party buyout is worth more than my lease pay-off and who knows how long that will hold true.
 

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I was going to explain the process but it looks like you figured it out :)

I will still say that if someone was able to negotiate a lower purchase price than MSRP in lieu of unfavorable lease terms the $699 lease fee is relatively minor for not having to worry about qualifying for the tax credit. I will also say the advice to move money from a Roth to a standard IRA in order to incur a taxable penalty just to benefit from a tax credit seems misguided unless one was going to do that anyway--but there are ways to roll retirement accounts around without incurring a taxable penalty so I still wouldn't waste my EV credit on that if I was in that situation.
 

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Yeah, it's going to be a headache. Between selling it back to VW or a 3rd party, I could break even (minus mileage) or make a few thousand dollars for the headache. If I can get out of it without too much hassle and out of pocket costs I'll be happy enough so I'd rather just give it back to VW or another customer looking for an ID.4 FE who doesn't want to get gouged by a dealership.

As for why I'm selling it? There are some teething problems that are likely to be dealt with via software updates that I'm not willing to wait for. This is based on my experience with my local dealerships and their unwillingness to follow through on my Touareg's original powertrain warranty and then the dieselgate extended warranty and less to do with the ID.4 itself.

I've been with VW for decades (exclusively) and the best experience (for me) is when I don't have to rely on their "independent" dealerships to diagnose and repair the vehicles--i.e., when I can fix them myself in my own shop. For someone who isn't bothered by the software glitches, or who has a healthy relationship with their local VW service center, or is willing to see if This Time it's Different (tm), this would be a good fit for them. Most of my opinion was forged with my experiences related to our Touareg. But after trying to drop the ID.4 off for service again today and being told they "don't have the tools" to work on it I'm feeling deja vu. There are several SoCal dealerships that are not exhibiting that kind of behavior based on others' posts in here but, for me, the holistic experience (car+support+customer service) is not something I'm interested in reliving. It's entirely possible all the problems go away with the first OTA and I never have to step foot inside a dealership again but right now the 3rd party buyout is worth more than my lease pay-off and who knows how long that will hold true.
What car are you considering in place of the ID4, if you haven't gotten one already?
 

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Discussion Starter · #20 ·
If you like paying the acquisition and disposition fees on top of other fees to buy the car. Additionally you are responsible for the entirety of the lease payments plus the residual price. It's not like you can pay off the principal on a loan and avoid the interest.
Incorrect, if you read the lease agreement it states you will pay the adjusted net cap cost (which includes the residual). The lease factor is calculated similar to a mortgage (monthly). You are not responsib
I was going to explain the process but it looks like you figured it out :)

I will still say that if someone was able to negotiate a lower purchase price than MSRP in lieu of unfavorable lease terms the $699 lease fee is relatively minor for not having to worry about qualifying for the tax credit. I will also say the advice to move money from a Roth to a standard IRA in order to incur a taxable penalty just to benefit from a tax credit seems misguided unless one was going to do that anyway--but there are ways to roll retirement accounts around without incurring a taxable penalty so I still wouldn't waste my EV credit on that if I was in that situation.
Not going to name the dealer, but they’re selling me my ID4 for invoice. This is swallowing up my acquisition fee. I’ll use my credit union to do the lease buy out and lower my rate.
 
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