Leasing A GTI

[gtinewbie1]

Is anyone else thinking of leasing a 2018 GTI.
I searched the forum and don’t see a lot of talk about leasing in general.

I am thinking of leasing my first GTI. A 2018 SE.

Interested in seeing what kind of deals folks got on their lease.





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[Shane_Anigans]

You probably don't see a lot of people talking about leasing on this forum because most everyone here has the desire to mod their car in some way or another, and most car enthusiasts choose to purchase rather than lease anyway.

That said, do some research, and if leasing makes more financial sense to you, there's no reason not to lease. However, the lease rates that VW offers on GTI usually aren't that great, and the new rates that they just released today are no exception. Generally speaking, unless they can get you into a car with little to no money down and monthly payments that are considerably cheaper than financing for 60 months, I wouldn't bother.

One last thing: if you're only considering a lease to get into a much nicer car than you could afford to finance, don't. If your maximum budget is $400/mo, don't get into a lease with $400/mo payments.

 

[GTI Jake]

this ^

 

[Strange Mud]

crappy leasing rates = crappy resale.

I love my GTI but if you get new cars often (or lease often) you should be aware that you will take the depreciation hit. I tend to keep cars a long time so hopefully it will be over 10+ years which very well be my lifetime (57 yo)

 

[vj123]

Unless its a base Jetta VW does not offer good residuals on their cars, whereas BMW artificially bumps up their residual to promote leasing. Thats the reason you dont see many leases in this community. You might be better off buying it, if thats an option.

 

[The Fed]

You probably don't see a lot of people talking about leasing on this forum because most everyone here has the desire to mod their car in some way or another, and most car enthusiasts choose to purchase rather than lease anyway.

That said, do some research, and if leasing makes more financial sense to you, there's no reason not to lease. However, the lease rates that VW offers on GTI usually aren't that great, and the new rates that they just released today are no exception. Generally speaking, unless they can get you into a car with little to no money down and monthly payments that are considerably cheaper than financing for 60 months, I wouldn't bother.

One last thing: if you're only considering a lease to get into a much nicer car than you could afford to finance, don't. If your maximum budget is $400/mo, don't get into a lease with $400/mo payments.

And if the car isn't in "CPO" condition when you turn it in, you'll be hit with reconditioning charges.

 

[scrapin240]

You probably don't see a lot of people talking about leasing on this forum because most everyone here has the desire to mod their car in some way or another, and most car enthusiasts choose to purchase rather than lease anyway.

That said, do some research, and if leasing makes more financial sense to you, there's no reason not to lease. However, the lease rates that VW offers on GTI usually aren't that great, and the new rates that they just released today are no exception. Generally speaking, unless they can get you into a car with little to no money down and monthly payments that are considerably cheaper than financing for 60 months, I wouldn't bother.

Unless its a base Jetta VW does not offer good residuals on their cars, whereas BMW artificially bumps up their residual to promote leasing. Thats the reason you dont see many leases in this community. You might be better off buying it, if thats an option.

These!

 

[rnam488]

I believe leasing CAN be a viable option depending on someone's specific lifestyle/needs and the car itself. In most cases, new GTIs are not great cars to lease. I've found that neither the residuals or money factors are great on this car, even with tier 1 credit. VW also tends to be less flexible on the sales price since they receive less dealer cash for leases vs. financed purchases. If you see yourself maintaining and driving the GTI for several years, you're probably better off financing.

If the issue is money, I'd highly recommend not looking at purchases through a monthly cost. Look at the total you'd ultimately pay out of pocket and make your decisions that way. Too many buyers lease cars they 100% can't afford just because "I can afford the monthly note." If you do your calculations starting with a total cost and you think the monthly payments are too high, you need to find a cheaper car.

 

[Rummy]

While it wasnt a GTI, I leased my previous car and I can safely say, it was not a good investment.

Not only did I essentially lose my down payment, I found myself with negative equity in the vehicle when I wanted to get rid of it.

If you have the means, I would highly recommend buying either new or used before leasing. While it may require a little more down, it means that your monthly payments are building towards something, and not getting flushed away.

The only situation where I see leasing as being viable is when you have an extremely high income and want to keep swapping cars every couple years. My realtor, for example, leases a new GS 350 F Sport every three years. He pays probably $600 a month, but for him thats a drop in the bucket.



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[Sir_Mk7r]

vw also has a hybrid loan that has qualities of both a loan and lease.

 

[vbrad26]

vw also has a hybrid loan that has qualities of both a loan and lease.

More info on this?
Is it like BMW's "Select" financing.

From their website:
"BMW Select is an innovative retail balloon financing product that combines lower monthly payments and the security of vehicle ownership. You make low monthly payments during your selected term and then reach a decision point:
1. You can complete your vehicle purchase by making a final balloon payment.
2. You can refinance the balloon payment amount.
BMW Select is a good alternative if you prefer the benefits of vehicle ownership and a low monthly payment"

 

[The Fed]

More info on this?
Is it like BMW's "Select" financing.

From their website:
"BMW Select is an innovative retail balloon financing product that combines lower monthly payments and the security of vehicle ownership. You make low monthly payments during your selected term and then reach a decision point:
1. You can complete your vehicle purchase by making a final balloon payment.
2. You can refinance the balloon payment amount.
BMW Select is a good alternative if you prefer the benefits of vehicle ownership and a low monthly payment"

Sounds exactly like an open-end lease except the title has your name on it. How exactly does that give you "security of vehicle ownership."? You still don't own it, they do, until the last payment's made. The title's still encumbered to them. Way to spin it, BMW. I wouldn't buy a BMW, their executives think we're morons.

 

[heiney9]

I found myself with negative equity in the vehicle when I wanted to get rid of it.

Could you explain this? You turn in the car at the end. If you're renting the car (which you are doing when you lease essentially) then you don't own it so I don't see how negative equity would impede you from getting rid of it. You know what the residual value is when you sign the lease. You make the final agreed upon payment and you're done, turn in the car, walk away.

Leasing can make sense if you put little down and the residual is reasonable. Meaning it's in line with the general value of similar models of previous years in your market. Your payments are based on the final sales price minus whatever they determine the residual is times a money factor. In most states (check your state) you only pay sales tax on the portion of the car you are using, not the entire price of the car.

You can manipulate those 3 numbers if you understand how they affect the transaction. You don't have to go with the advertised lease pricing. All those factors can be negotiable if you know what you're doing. The dealer may be flexible or not so flexible.

 

[ElectricEye]

Some good rational advice from the posters above.
There's nothing wrong with leasing per say, I've done it and I know many people who have done it as well.
It doesn't usually make the best long term financial sense though.
If you were to ask me about leasing a GTI right now I would suggest against it, because you can get a tremendous deal on a 2017GTI.
They're heavily discounted, even before negotiations.

 

[vbrad26]

Sounds exactly like an open-end lease except the title has your name on it. How exactly does that give you "security of vehicle ownership."? You still don't own it, they do, until the last payment's made. The title's still encumbered to them. Way to spin it, BMW. I wouldn't buy a BMW, their executives think we're morons.

Hah that is a good point.
But it's not like a lease where you can just turn it in and walk away.
Instead, you are on the hook to choose option one or 2, or there is a #3 where you can sell the car privately to make that final balloon payment, thus, basically "walking away" from the car.
That is assuming you can get your balloon payoff out of it...