RE: Money Factors
Most companies will money around with the money factor if they want to advertise a particular monthly payment amount, but generally they'll lower it if they want to get rid of inventory. Right now, the MF for a 2017 GTI is .00001
Security deposits: I don't have an answer for that, but your dealer probably does.
The difference between the 2 rates is... Well to be honest, I'm not entirely sure what determinations are made on the dealer's level. If you walk into the dealer with Tier 1 credit, you'll get the lower of the 2 APRs, but if you don't, the dealer has the option of financing you at 1.9? There's also a dealer 2nd choice available on some models, but the rate is higher and the cash is the same. In any case, both of those come with cash incentives that are greater than the VW dealer cash that's currently available. I'd ask your dealer if you want to know for sure.