2019 GTI on sale today (12/11/2019)

[Shane_Anigans]

Just received the updated Volkswagen Credit Residual Values, which now includes the 2019 GTI. So, they should be available at your local dealers soon/already.

 

[vj123]

Thats good news to people who are waiting for a while.

 

[cb1111]

And what are the residuals? TIA

 

[Shane_Anigans]

And what are the residuals? TIA

Largely irrelevant since VW isn't offering special lease rates on them, and their standard rates are only for people who hate having money. I'll post them tomorrow, unless I get too busy and forget to.

 

[david9962000]

They might be here?

https://www.cars.com/vehicledetail/detail/755117534/overview/

https://www.cars.com/vehicledetail/detail/755117531/overview/

 

[PLF8593]

Largely irrelevant since VW isn't offering special lease rates on them, and their standard rates are only for people who hate having money. I'll post them tomorrow, unless I get too busy and forget to.

lol what does that mean? i know VW leases pretty terribly anyway but i don't really understand how leasing works

 

[PLF8593]

They might be here?

https://www.cars.com/vehicledetail/detail/755117534/overview/

https://www.cars.com/vehicledetail/detail/755117531/overview/

might? they're there. they say "2019," and "recent arrival!"

 

[Shane_Anigans]

lol what does that mean? i know VW leases pretty terribly anyway but i don't really understand how leasing works

The cost of a lease is determined by 3 things:

1) The lease rate/money factor (interest rate, essentially)
2) The residual value, i.e. how much they say the car will be worth at the end of your lease term

3) Capitalized Cost Reduction, or Lease Cash.



As it pertains to the GTI, VCI rarely (if ever) offers low lease rates, not much lease cash, and the residual values are average. So, combine a standard lease rate with no lease cash and an average residual value, and you wind up with monthly lease payments that aren't much lower than your monthly payments on a 60-month loan. In that scenario, there aren't any advantages to leasing, unless you know for certain that you'll want a different car in 3 years time.

 

[Shane_Anigans]

might? they're there. they say "2019," and "recent arrival!"

Gotta love a dealer that takes pics of their cars on their weedy, dingy-looking storage lot.

 

[cb1111]

The cost of a lease is determined by 3 things:

1) The lease rate/money factor (interest rate, essentially)
2) The residual value, i.e. how much they say the car will be worth at the end of your lease term

3) Capitalized Cost Reduction, or Lease Cash.



As it pertains to the GTI, VCI rarely (if ever) offers low lease rates, not much lease cash, and the residual values are average. So, combine a standard lease rate with no lease cash and an average residual value, and you wind up with monthly lease payments that aren't much lower than your monthly payments on a 60-month loan. In that scenario, there aren't any advantages to leasing, unless you know for certain that you'll want a different car in 3 years time.

There is actually a 4th thing too - the negotiated price of the car.

For those not familiar with how leasing works:

You negotiate the price of the car as if you were buying it (you are buying part of it).

You decide on the cap cost reduction. That can be a trade or a down payment.

You determine the residual based on the percentage set by the manufacturer. That percentage is figured from the MSRP and not the negotiated price.

Accordingly, the lease cost is:

Negotiated price plus tax and tags and lease fees (if any) - minus

Cap cost reduction (although I usually call it a down payment - which it is - but cap cost reduction makes it sound like you're getting something) - minus

Residual.

That's the cost of the car after you add the cost of the "money factor" (a fancy name for interest rate), divide by the months in the lease and you've got your monthly payments.

 

[Mk_GTI]

There is actually a 4th thing too - the negotiated price of the car.

For those not familiar with how leasing works:

You negotiate the price of the car as if you were buying it (you are buying part of it).

You decide on the cap cost reduction. That can be a trade or a down payment.

You determine the residual based on the percentage set by the manufacturer. That percentage is figured from the MSRP and not the negotiated price.

Accordingly, the lease cost is:

Negotiated price plus tax and tags and lease fees (if any) - minus

Cap cost reduction (although I usually call it a down payment - which it is - but cap cost reduction makes it sound like you're getting something) - minus

Residual.

That's the cost of the car after you add the cost of the "money factor" (a fancy name for interest rate), divide by the months in the lease and you've got your monthly payments.

Former car sales pro tip: Never put any money down on a lease. Always lease the full negotiated amount. You'll need gap insurance either through your insurer or from another source. If the car is ever totaled, gap insurance will pay off the car. You might not get any money back you put down if the car is totaled.

 

[cb1111]

Former car sales pro tip: Never put any money down on a lease. Always lease the full negotiated amount. You'll need gap insurance either through your insurer or from another source. If the car is ever totaled, gap insurance will pay off the car. You might not get any money back you put down if the car is totaled.

Right, any down payment is history if the car is totaled.

Dealers play all sorts of games. Capitalized cost reduction sounds like something you're getting and sounds far less intimidating than "down payment."

A "money factor of .0015" sounds far better than "3.6% interest rate"

 

[snobrdrdan]

You'll need gap insurance either through your insurer or from another source. If the car is ever totaled, gap insurance will pay off the car. You might not get any money back you put down if the car is totaled.

Most leases already include GAP insurance (standard). Well the ones I've had thru VW Credit & GMAC/Ally/whatever

 

[XM_Rocks]

Former car sales pro tip: Never put any money down on a lease. Always lease the full negotiated amount. You'll need gap insurance either through your insurer or from another source. If the car is ever totaled, gap insurance will pay off the car. You might not get any money back you put down if the car is totaled.

To add to this, read the Gap coverage/benefit.

Some Gap policies only pay a % of the gap.

You can also ask for the Loss Stip Table at the outset of your lease to see if your Gap coverage is sufficient.

Just remember, Insurance companies hate paying claims. So be skeptical.

 

[Mk_GTI]

To add to this, read the Gap coverage/benefit.

Some Gap policies only pay a % of the gap.

You can also ask for the Loss Stip Table at the outset of your lease to see if your Gap coverage is sufficient.

Just remember, Insurance companies hate paying claims. So be skeptical.

Correct, make sure to read and understand your insurance policy. My auto insurance policy offers 100% replacement for three years from purchase. The cost of this coverage does increase quite a bit from year one to three.