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Re: (VeeDubDriver)

Wow, this thread has been extremely informative! I sold cars 30 years ago when leases were virtually unheard of, but I certainly knew about all the other ways to screw customers, charging them higher interest rates than the dealer was paying for it, etc. When leasing started to get popular about 15 years ago, it looked to me that there were 20 new ways for a dealer to manipulate the figures without the customer ever knowing how the lease payment was determined. Great explanations !!!
 

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Re: Learn how to calculate a lease... (VeeDubDriver)

Baloon Payments are only on Prefered Buy Accts (CSA) which are only done in certain states to get around the lease laws. THe ballon payment gives the customer the option to refi for the Residual Value of the car and purchase the car or sign a Power of Attorney signing the car back top VW...


Modified by VWAudi70 at 3:17 PM 2/2/2005
 

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this is a great thread - thanks for all the info!
now that I know how to calculate my lease, anyone have the current money factor, residual, and any factory cash incentive for a 2005 Jetta GL? Looking at 39 or 48 month lease, 12k or 15k miles (not sure yet).


Modified by doctorit at 9:01 PM 2-19-2005
 

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Re: (doctorit)

Quote, originally posted by doctorit »
this is a great thread - thanks for all the info!
now that I know how to calculate my lease, anyone have the current money factor, residual, and any factory cash incentive for a 2005 Jetta GL? Looking at 39 or 48 month lease, 12k or 15k miles (not sure yet).

If you lease through VW, you get a total of $1700 incentives right now, plus 500 if you'r a current vw owner. 0.00025 money factor on A tier, 50% at 39 mos, 46% at 48mos (15k) add 2% for a 12k lease
 

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I must say this thread is a wealth of information. That said, I am hoping to get some info myself.

Right now, I am looking at picking up the hot, new 2005.5 Audi A4. Equipped as such: 2.0T Q w/6 speed; sport package; prem. pack; light package; prem audio w/XM; cold weather pack; Audi DVD Nav+; Quartz grey w/Ebony interior and power rear and manual side sun shades. The dealer is quoting me $38084 vs. MSRP of $38995. The specs on the Premier Purchase are 39 mos @ 12k a year w/$2000 down + fees. (Oregon does not have any applicable taxes to this deal). Monthly payment is to $488 with A tier credit. Does this compute??
I called the dealer and inquired more and they told me that the rate was 4.6% and a residual of $21447.
Is this deal workable to more favorable numbers even though this model is brand spanking new? I have been wading through the advice in this thread and I want to think I can do better.
I appreciate the help!
Cheers.
 

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Re: Learn how to calculate a lease... (VeeDubDriver)

Here's the easiest formula:
(price + residual) x money factor = interest
(price - residual)¸ ¸ term = depreciation

add them togther for a payment.
taxes are based on total of payments.
 

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Re: Learn how to calculate a lease... (VT Passat)

I apologize for taking this a little OT, but is there a similar post on Vortex or other site concerning financing the purchase of a car
 

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Discussion Starter · #135 ·
Re: Learn how to calculate a lease... (VT Passat)

Quote, originally posted by VT Passat »
Why is the residual value added to the sales price to figure the interest?

Because that is what the leasing gods demand!
 

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Discussion Starter · #136 ·
Re: Learn how to calculate a lease... ([email protected])

Quote, originally posted by [email protected] »
I apologize for taking this a little OT, but is there a similar post on Vortex or other site concerning financing the purchase of a car

This might help: http://www.edmunds.com/finance...ce..2.*
Otherwise, go ahead and create a new thread and we will see if we can get you questions answered.
 

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Re: Learn how to calculate a lease... (VeeDubDriver)

I am thinking of leasing my new TDI but the numbers I'm given by the dealership seem way too high. Here are the the numbers they give me:
Selling Price: 23460
Residual: .58 (13897)
Interest Rate: 3.5%
Georgia Sales Tax: 7%
Lease Term: 36 months, 12K miles
Lease Price: 420
When I calculate it using your formula, I get 342.53.
Am I doing something wrong or getting ripped off?
Thanks.
 

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I want to lease a 2.0T A4 Avant. Black/black with prem, navi, lighting, sport, audio. 36 months, 12k miles, 3500 drive offs.. But you guys said I shouldn't put money down.
The dealers gave me these numbers.
Offer1:
MSRP $39,745.00
Invoice $37,563.16
Selling price $38,063.16 ($500 over invoice)
Adjusted residual value $23,052.10
Drive offs $ 3,500.00
Monthly Payment $ 454
Offer 2
OFFER 2:
Selling price $35,498
Money factor: 0.00135
Residual 58%
Monthly $420
OFFER 3: (I originally requested one with just Prem, Navi, Lighting and this is what he quoted me telling me he'd do this if he could find one.. which he couldn't so he later called and offered $426 or something for the same car above)
MSRP is $37995.00
Invoice $34770.16
Cap Cost $35770.00
Out of Pocket $3500.00
Residual 58%
Monthly $410.40
Should I expect better numbers? Since a base 2.0T sedan is going for $299 (but for a 24 month, 10k miles, with 2900 drive offs)


Modified by pickuptyper at 5:17 PM 7-12-2005
 

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Re: (VeeDubDriver)

It's true. Especially given the current incentives being offered in North America on new vehicles, it does nothing to help maintain the resale price of a new car.
Therefore, leasing is a great alternative to buying new if you have the cash flow. I'm not sure about the US, but in Canada, if you work for yourself, you can actually write your lease off as a business expense up to $750/month, which makes leasing even more attractive!
 

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Re: Learn how to calculate a lease... (CS VW)

OK, so I have a good car('99 Alero) that I want to trade in on a Golf (my virst VW). Right off the bat, lease payments are significantly lower than buying so thats my natural first choice. Driving to and from work (Surprise to Phoenix) would be 12k miles, I may be getting a new job that would add 2200 miles to what I already drive...so by the advice given I should not go with a lease right? Problem is that with a lease I can get a Golf for 220 a month and buying means like 350.
Am I totally screwed here? FWIW, I would be trading in my car which is paid off to cover the initial down, most likely I would keep the vw and not turn it back in. For me the monthly payment is most important..like keeping it under 250 per month.
Not sure what to do...help?

Modified by nymike at 2:02 AM 10-8-2005


Modified by nymike at 2:06 AM 10-8-2005
 
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