VWvortex Forums > Golf IV R32 > $499/month for a 5 year lease!? (Printable Version)

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Post Title: $499/month for a 5 year lease!?
Posted by: jlaudi at 9:36 AM 2-11-2004

I'm sorry, but that's crazy to me. I leased so far 3 cars and this by far is the most ridiculous monthly payment I've seen.

I got my R32 in yesterday, but I just can't bring myself to pay almost 500 bucks a month for a lease. What kind of rates for leases and purchases have people on here gotten? I want some info to present to my dealer cause I feel like I'm being screwed.



Post Title: Re: $499/month for a 5 year lease!? (jlaudi)
Posted by: audicowboy at 9:39 AM 2-11-2004


Don't forget that interest rates for financing and leasing is also based on your credit score.



Post Title: Re: $499/month for a 5 year lease!? (jlaudi)
Posted by: jlaudi at 9:50 AM 2-11-2004

My credit score is 761!!!



Post Title: Re: $499/month for a 5 year lease!? (jlaudi)
Posted by: mtbscoTT at 10:08 AM 2-11-2004

First of all, a five year lease is a big no-no. Most responsible dealers would never suggest more than a 36 month. Considering the lease is based on the amount of principle left after subtracting residual (which should be at least 50% if not closer to 60%), your payments should be less than that for 36 months. Another word of advice, don't ever put anything down on a lease, it's just money thrown away. That said, I think you should finance the car. With a couple of grand down, and a 60 month finance, you could easily have payments close to what your lease quote is now. Then at three years, if you decide you're ready to sell, you should be close to break even without worrying so much about the lease mileage limits. Shop around, don't let your dealer put the squeeze on you.



Post Title: Re: $499/month for a 5 year lease!? (jlaudi)
Posted by: Justin@BlueRacing at 10:50 AM 2-11-2004

Quote, originally posted by jlaudi »
I'm sorry, but that's crazy to me. I leased so far 3 cars and this by far is the most ridiculous monthly payment I've seen.

I got my R32 in yesterday, but I just can't bring myself to pay almost 500 bucks a month for a lease. What kind of rates for leases and purchases have people on here gotten? I want some info to present to my dealer cause I feel like I'm being screwed.

Are you sure that your expectations are reasonable? It's a $30K car and there are no promotional rates available. That's what $30K cars cost, for the most part.

Oh...and PLEEEEEEEEEEEEEASE don't do a 5-year lease. It's a bad move.



Post Title: Re: $499/month for a 5 year lease!? (Justin @ 3 Rivers VW)
Posted by: CChaos at 10:55 AM 2-11-2004


Quote, originally posted by Justin @ 3 Rivers VW »

Are you sure that your expectations are reasonable? It's a $30K car and there are no promotional rates available. That's what $30K cars cost, for the most part.

I think his expectations are reasonable. Paying $30,000 to lease a $30,000 car seems unreasonable to me.



Post Title: Re: $499/month for a 5 year lease!? (jlaudi)
Posted by: a4tq at 11:03 AM 2-11-2004


Compare that to a purchase .... 31k + tax financed at 4.6 for 60 mths is about 620 a month if memory serves me right.

In Nov I was quoted 550/month (tax included) on a 39 mth lease for an 03 TT 225 (cap price was 35k - Audi Rebate and fact the car was sitting @ dealer for 6 mths). By that reckoning the R32 should be in the high 400's for a similar period assuming better residual/interest than a previous model year car.

As others have said, long term leases that will take you outside of warranty period are not a good idea, especially at what you were quoted.

Modified by a4tq at 8:10 AM 2-11-2004



Post Title: Re: $499/month for a 5 year lease!? (jlaudi)
Posted by: tfazzie at 12:55 PM 2-11-2004


I was quoted $499 a month (including tax) for 36 months with $2,000.00 down(that included 1st payment, security deposit and other fees). For 48 months I was quoted $450(including tax) with the same amount down. Both Leases were based on 10K miles a year. These were about what I was expecting. I knew that I wasn't going to get a good deal since the R32 is going to be somewhat rare.



Post Title: Re: $499/month for a 5 year lease!? (jlaudi)
Posted by: mtbscoTT at 1:18 PM 2-11-2004

Just an idea, if your credit is as good as you say, you should be able to get around 4% on a new 60 month loan (VW Credit may not be offering that but other banks sure are). Using a simple payment calculator, $30K at 3.9% for 60 months would be $552.36. That sounds better to me than paying $499 for a 39 month lease.



Post Title: Re: $499/month for a 5 year lease!? (jlaudi)
Posted by: lip at 2:41 PM 2-11-2004

Heck, I lease a Toureq for 499 a month- With a lot of goodies.

$499/month on a 5-year lease, what's the residual look like?
I imagine it's next to nothing. If it were me, I'd put 5k down and do 4-year purchase through a credit union for $499 a month



Post Title: Re: $499/month for a 5 year lease!? (lip)
Posted by: Elbows at 4:18 PM 2-11-2004


5 year lease = no no.

Purchasing one is around 600+ a month at 60 months, with no money down. Every thousand down will drop that by about 20 bucks a month.

(dont forget to add tax/title/tags)



Post Title: Re: $499/month for a 5 year lease!? (jlaudi)
Posted by: Army R32 at 9:36 AM 2-13-2004


I'm paying $13 more than that a month $3000 down and I will own mine in five. Don't do the lease.



Post Title: Re: $499/month for a 5 year lease!? (mtbscoTT)
Posted by: vw_chris at 9:56 AM 2-13-2004

Quote, originally posted by mtbscoTT »
don't ever put anything down on a lease, it's just money thrown away. That said, I think you should finance the car. With a couple of grand down, and a 60 month finance, you could easily have payments close to what your lease quote is now. Then at three years, if you decide you're ready to sell, you should be close to break even without worrying so much about the lease mileage limits. Shop around, don't let your dealer put the squeeze on you.

I agreed with what you said earlier, but man. You are dead wrong about putting money down on a lease. It is not throwing it away , it is called a "cap reduction". It is why your payments drop by $30-$40 per $1000.00 you put down. It is either put money down and have a lower payment or put 0 down and have a higher payment. One will either pay it now or later, when is the only question.

And financing this car is also a bad move for 60 months. The depreciation of this car could be pretty drastic if they have any problems with the car. If one would lease the car for 36 to 42 months max, they have a guaranteed buyer at the end if it does depreciate. If it doesn't buy the car, sure you might pay a little more then, but it is worth it then. One other thing, VW's rates for an r32 are going to be in the 4.5-5% range with a 761 beacon anyway. Oh yeah not to mention the tax savings.

Find out what the money factor is? That is where they probably are killing you. They can charge you anything they pretty much want to with this car when it comes to the money factor. The residual and capcosts have to be within VW standards. MSRP + Acquistion Fee ect ect, but pretty standard. Are they gouging you one Paint Sealant aka MOP N GLO? And why are they putting you in a 60 month lease? That is silly.....

Don't shop for another r32, you could loose that one, but don't let them slam you into a 5 year lease...



Post Title: Re: $499/month for a 5 year lease!? (vw_chris)
Posted by: peppeVR6 at 10:26 AM 2-13-2004


3.4% 5 years from Chase with A credit. better off buying if you can get that rate.



Post Title: Re: $499/month for a 5 year lease!? (peppeVR6)
Posted by: vw_chris at 10:58 AM 2-13-2004

Well 3.4% with chase is nice. We push their paper at my dealership too, but I can do better than that. With a 700+ Beacon, we can get 3.25% fixed for 60mnths.

But still a lease in my opinion is the way to go on this car.



Post Title: Re: $499/month for a 5 year lease!? (vw_chris)
Posted by: vr6y at 12:07 PM 2-13-2004


wow, thats $30,000 in payments ($500 X 12 X 5) may as well
buy it.



Post Title: Re: $499/month for a 5 year lease!? (jlaudi)
Posted by: BLKGTIVR6 at 1:08 PM 2-13-2004

What's your cap cost, money factor, residual and how much are you putting down?



Post Title: Re: $499/month for a 5 year lease!? (vw_chris)
Posted by: UncleBens at 2:01 PM 2-13-2004

Quote, originally posted by vw_chris »

I agreed with what you said earlier, but man. You are dead wrong about putting money down on a lease. It is not throwing it away , it is called a "cap reduction". It is why your payments drop by $30-$40 per $1000.00 you put down. It is either put money down and have a lower payment or put 0 down and have a higher payment. One will either pay it now or later, when is the only question.

I strongly disagree.. first off, if you are in an accident and total the car, you're out your downpayment. Secondly, that downpayment could be put into an APPRECIATING investment instead of giving to VCI to make money on.

From someone that has leased may cars, DO NOT put down more than security deposit and other tax/tags on a leased car. If you can't afford another $50 a month you shouldn't be leasing the car in the first place.



Post Title: Re: $499/month for a 5 year lease!? (UncleBens)
Posted by: abe1.8t at 2:23 PM 2-13-2004


dont quit your day job



Post Title: Re: $499/month for a 5 year lease!? (abe1.8t)
Posted by: UncleBens at 2:44 PM 2-13-2004

Quote, originally posted by abe1.8t »
dont quit your day job

Wasn't planning on it.

Perhaps you can rebutt with something that actually takes some brain power to conjure up?

Modified by UncleBens at 11:47 AM 2-13-2004



Post Title: Re: $499/month for a 5 year lease!? (abe1.8t)
Posted by: BLKGTIVR6 at 2:55 PM 2-13-2004


Quote, originally posted by abe1.8t »
dont quit your day job

I know ... what's that about? How about trying to make a point instead of just spouting off at the mouth.



Post Title: Re: $499/month for a 5 year lease!? (jlaudi)
Posted by: GelbM3 at 3:03 PM 2-13-2004


$500 per months seems very high for a lease on this car. Sound like the finance folks believe that the car will not be worth much after 5 years.

If you are really thinking about a 60 month obligation, traditional financing may make more sense. Finance rates seem to be between 3.5% and 6.0% (bank). Assuming MSRP, 7.5% sales tax, typical fees, 5% financing and your $2000 down, your payments for 60 months would be about $590/month. If you can get your down payment up to $6500, you payments would be $498



Post Title: Re: $499/month for a 5 year lease!? (jlaudi)
Posted by: vw_chris at 3:53 PM 2-13-2004


Hey bro I can do a 48month lease for $480.00 per month with $2500 total due at signing.

Or how about 60 months for $575.00 per month.

Have cars available in LEATHER ONLY... PICK A COLOR....


Contact:

Chris Linhart
Dreyer & Reinbold of Greenwood
1-800-315-2288

clinhart@dreyerreinbold.com



Post Title: Re: $499/month for a 5 year lease!? (UncleBens)
Posted by: abe1.8t at 5:08 PM 2-13-2004


nah, i think i said it all

enjoy the lease

Modified by abe1.8t at 4:14 PM 2-13-2004

Modified by abe1.8t at 4:15 PM 2-13-2004



Post Title: Re: $499/month for a 5 year lease!? (abe1.8t)
Posted by: fiorya at 5:27 PM 2-13-2004


5 year lease is the same as financing it on a loan...most cars depriciate significantly in 5 years.. like 70%

that is why you are charged so much..the residual is less certain.



Post Title: Re: $499/month for a 5 year lease!? (fiorya)
Posted by: VeeDubDriver at 1:19 PM 2-20-2004


Look here for lease info: http://forums.vwvortex.com/zerothread?id=1240757



Post Title:
Posted by: shawny0123 at 4:10 PM 2-20-2004

I gotta agree with UncleBens I would put the money into stocks/mutual funds that you think could net you atleast 5% profit per year. Of course anything over 10% would be better but as long as you're making more off this than your finance charge you should be golden.




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