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Leasing A GTI

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russiankid

Drag Race Newbie
Location
PA
heiney9 said:
So many assumptions here it's ridiculous. Everyone has a different perspective, different goal and different experiences and to make the above statement, while true in some cases, just isn't true in many cases.

I went 72 months on a new car for several reasons, none of which has anything to do with not affording it at a shorter term or not being able to afford to maintain it at month 60+.

I didn't want a high car payment, I put about 40% down, had a super low interest rate so the money is practically free and I make extra principle payments each month. My main reason beyond that is in my area there has been job instability in the past and if I were to be "downsized", I'd still be able to make the sub $250/mo car payment I have. It made sense to me to extend the term knowing I'd be paying extra each month, BUT if the company I work for ran into rough times, I wouldn't have to sell the car at a loss if I was unemployed for a short time because I had a $400+ car payment.

Maybe this isn't the scenario for you, but it works for me and I sleep fine at night. So don't assume a 72 month term automatically means the person is doomed because they can't really afford the car, or that it's a bad financial choice.
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I did a 72 month loan for similar reason, just in case. I pay more every month than the actual note, and I had enough positive equity from my trade in so that if I wanted to go trade my car in right now, I wouldn't be under water.
 
DJTEKNISION

DJTEKNISION

New member
Location
United States
Dealers love customers who lease cars because you become a customer forever. At the end of a lease most people either purchase the car they were leasing or the dealer will convince them to upgrade their car and start a new lease cycle. Either way you will continue to pay the dealership.

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adam1991

Banned
Location
USA
If they purchase the car, they're not paying the dealer.

They buy the car from the leasing company, who is the owner of the car. The dealer ceased being involved with the car the moment they sold it to the leasing company.
 
DJTEKNISION

DJTEKNISION

New member
Location
United States
adam1991 said:
If they purchase the car, they're not paying the dealer.

They buy the car from the leasing company, who is the owner of the car. The dealer ceased being involved with the car the moment they sold it to the leasing company.
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Depends on who they go with when they finance. If the use VWCredit, the dealership will be making money by getting percentage of the finance. If the use an outside bank or credit union then you are correct. VWCredit has always given me the best rates but someone else may be in a different situation.

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TheWombat

Go Kart Champion
Location
Vermont
I leased two cars, a WRX and an Integra GS-R. Both were because I needed a car and didn't have much to put down. I was also sort of unsure what I wanted. Both were really fun cars, though in the end the only one I kinda wish I kept was the Acura, as it was something else to drive--that high-revving VTECH and maybe the slickest six-speed I've ever rowed.

The overall _experience_ though was not fun. Much more complex (to me) than buying, and being who I am I was getting antsy the last year of the three-year lease about wear and tear. Though in both cases there were no extra charges, I always sort of felt that I was worse off at the end of the lease than I was in the beginning.

With some of the numbers being tossed around here--$480/month for a GTI? For four years?--I'm certainly happy to paying a lot less than that for my R. Admittedly, I put money down on it this time, and everyone has a different threshold, but for me, if I'm paying nearly five C-bills a month on a lease, it would have to be, I dunno, an Audi or something equivalent.
 
blaqsheep

blaqsheep

Autocross Champion
Location
Canada
Car(s)
IS38 GTI
Was looking into buying a TDI but then saw the Canadian order guide came out for the 2018 GTI, ran the numbers for a base model and it was too good to pass up. Lease rates equivalent to that of a Golf or Civic. 0 down, 0% interest, 36/12k for ~$275 USD/month.

Why did I lease? No money down with low payments. Leases are tax deductible and I am able to invest the money I saved compared to financing. I also tend to switch cars every few years so it's a good feeling to know I have some options in 3 years. Leasing is definitely a good idea for some, but not all. Funny enough anytime anyone in my family has leased a car they've bought it out and kept it. Maybe I'll break that streak, who knows.
 
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takemorepills

Ready to race!
Location
USA
blaqsheep said:
Was looking into buying a TDI but then saw the Canadian order guide came out for the 2018 GTI, ran the numbers for a base model and it was too good to pass up. Lease rates equivalent to that of a Golf or Civic. 0 down, 0% interest, 36/12k for ~$275 USD/month.

Why did I lease? No money down with low payments. Leases are tax deductible and I am able to invest the money I saved compared to financing. I also tend to switch cars every few years so it's a good feeling to know I have some options in 3 years. Leasing is definitely a good idea for some, but not all. Funny enough anytime anyone in my family has leased a car they've bought it out and kept it. Maybe I'll break that streak, who knows.
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This is the circumstance where leasing is good. People forget (when bashing a lease) that you are paying down the principle of a car loan every month, and the lower your finance rate the more money going into the principle of the loan. IF you keep the car, then you didn't lose much money at all, because at 0% rate you are basically putting all of your money towards the payoff. And, if you negotiated a good purchase price at lease inception, then over-all leasing ain't bad at all.

I leased my GTI on a similar deal as yours. I pay a little more because mine is a DSG SE with LP. I am at my last 10 payments, my car will be $18.9K to buy out. I have got the "new car bug" out of my system, and I have been considering whether to keep my GTI or buy a slightly used something else. In looking around at slightly used cars, I realized I can NOT buy a better car than if I buy my GTI after lease. My GTI is in perfect condition, has been perfectly reliable, no rattles and I am only (unfortunately) putting 7k miles a year on it, so it will have 21K miles at lease end. For $18.9K I can't find a better car on the used market.
So, in my case I feel leasing was the right choice, because I didn't trust VW when I first bought my car, and I didn't want the hassle of being responsible for selling a "typical VW" if the car proved to be a dud.
 
G

Genegenie

Drag Race Newbie
Location
North Yorkshire
Car(s)
VW Golf
Leasing isn't for everyone. I've leased for about 12 years, it cost me plenty, sure, but servicing included & the lack of hassle if stuff goes wrong makes it worth while for me. I often get bored and several times have cancelled a 4 year lease with a year remaining incurring little penalty, most probably as I took another new car. Do the math(s), think about it, factor the lack of hassle into the equation, then pull the trigger. Or not. And, yeah, I could also see me buying current car outright....
 
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