Lease takeover

Hayden said:

Hi guys,

I am planning to take over a lease this Wednesday and I wan't some opinions to make sure I am getting a decent deal.

2016 GTI Autobahn with lighting package, driver assistance package, and maintenance package. Carbon grey 4 door 6 speed manual with 14200 KM's (~9000 miles). All prices are in canadian btw.

The payments are $505 including tax per month with 23 months left. The residual is $18,020 after the lease.

So total would be $444 ($505 after tax) x 23 months = $10,221 + $18020 (residual) = $28,241.

Any 2016+ GTI is going for roughly $30k with usually 60k KM's.
I feel that since I am saving the 25 months of lease he has paid. This is my first time considering / looking into taking over a lease. Maybe I am not seeing something? Seems like a decent deal for me.

I know it isn't a TON of $ off MSRP, but its the exact color, transmission, package, and year that I was looking for. I have an appointment Wednesday to sign it over. The business manager at the dealership I am signing it over on said it was a fantastic deal for me. I do plan on buying it out once the lease is over.

Side note: I am driving a 2007 GTI and wow this mark 7 is amazing and I am so excited to be driving that now.

Cheers

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BigDan said:

I would just buy it out right If you plan on keeping it. Why lease it? What is a maintenance package?

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krusty50 said:

Don't forget that the residual is taxable and so is the buyout fee (usually around 500$)

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Hayden said:

Not sure to be honest....If I went that route I would need to get a loan of $30k give or take to buy it out, seemed easier to take over the lease and then I would be able to pay it out at the end.

Maintenance package covers 5 or 6 services (15k 25k 30k etc). I looked through it and it just seems like it covers oil and filter changes and tire rotations.

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BigDan said:

If it was me, I would get a pre approved loan. You know what your interest rate and payments are going to be. Its a used car so the rate maybe a little higher. You have the check in hand. Get the loan for 30,000 and offer something less than what they are asking. YOU don't have to spend the whole thing. Matter of fact get an out the door price. Tax, tags and doc fee. (don't pay for any other Fees) In PA I think its a flat fee of about 150. Walk in and tell them that you would take deliver today. You know what you want to pay before you walk in. Leave room for negotiations but have a limit to out on walk. Don't by anything in the back office. Take control out of the dealerships hands. I have a 15 Autobahn bought in sept of 14 for 27,900 29,8xx after tax and tags. with 13 miles on it. That car is used it should be less and the end of the day. Now if you did not know if you was going to keep it or are in a desperate need of getting a car, well that would be a different story.

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Hayden said:

Sorry, a little hard to follow, are you referring to getting a $30K loan and then shopping at dealers for brand new?

A new 2018 GTI with the same packages is looking at $44,117 (after tax and fees) on VW.ca (i know you can haggle a bit, but just as a base price). This one would cost me basically $33,770 after tax including the $500 buyout.

So saving roughly $10K but sacrificing 2 years and 8000 miles.

My plan was to sell my old car and use the money from that to cover the lease payments for all 23 months. In the meantime, put away $400 ish per month to go towards my $18.5k buyout at the end of the lease.

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BigDan said:

If it was me, I would get a pre approved loan. You know what your interest rate and payments are going to be. Its a used car so the rate maybe a little higher. You have the check in hand. Get the loan for 30,000 and offer something less than what they are asking. YOU don't have to spend the whole thing. Matter of fact get an out the door price. Tax, tags and doc fee. (don't pay for any other Fees) In PA I think its a flat fee of about 150. Walk in and tell them that you would take deliver today. You know what you want to pay before you walk in. Leave room for negotiations but have a limit to out on walk. Don't by anything in the back office. Take control out of the dealerships hands.

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Shane_Anigans said:

From what I gathered from the original post, the vehicle is currently leased by someone else, OP is assuming the remaining payments, and the dealer is facilitating the paperwork. Also, OP lives in Canada, so different rules apply.



Now then, if the total of the lease payments plus the RV are less than what the same car is selling for on the used market, it sounds like a good deal. You're also coming out ahead in the sense that you didn't have to make a down payment, the other guy/girl has already taken care of that for you. The only thing I would looking into doing (as BigDan suggests) is exploring whether its possible to refinance the total balance and get a lower payment out of it. There's no reason the lease has to go all the way to term unless their lease contract specifies it. Then, once you have the title on car that you obtained for several thousand less than current market value... Sell it and profit!

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