Thinking of leasing

GS631 said:

Yea that's one thing I'm super OCD about is late payments and stuff haha I guess that's why I was tier 1 it deff pays off and I set my buy out in the lease agreement and also that the car would be bought as a cpo if I buy it out so that cpo warranty should cover belts and stuff if I do keep it

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what do you mean you set your buyout? residual value is set by the manufacturer and is usually at 65%. if you want to buy it out at the end of the lease, this residual could be good or bad. good if the car is worth quite a bit more than the projected residual, but bad if the car is worth less. it all depends. they merely estimate. what many people do, if they are savvy and willing to do a little legwork, is that if the car is in excellent condition at lease end, and is worth more than the residual set by manufacturer, they sell the car privately, pay off the lease and pocket the equity.

McQueen77 said:

what do you mean you set your buyout? residual value is set by the manufacturer and is usually at 65%. if you want to buy it out at the end of the lease, this residual could be good or bad. good if the car is worth quite a bit more than the projected residual, but bad if the car is worth less. it all depends. they merely estimate. what many people do, if they are savvy and willing to do a little legwork, is that if the car is in excellent condition at lease end, and is worth more than the residual set by manufacturer, they sell the car privately, pay off the lease and pocket the equity.

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When I went in there I had already been running number and knew what I wanted to pay and at what residual% would get me there so in order to get me there he had to tweak the residual and on a 42 month lease (during sign and drive here) 12k a year my residual was 53% and if I buy the car out at the end it will be for 13,387 and Certified pre owned allowing me to have that warranty as well ( this is all from the lease agreement I have out in front of me) and I believe 31/2 years from now the car will be worth more then 13k. I researched this for years lol I'm no professional but I like to believe I did my homework considering when I was 18 and tried getting a mk5 they wanted 410 a month plus tax and so on with 10k a year lol

I did but didn't set it i guess you can say but in order to get where I wanted he had to tweak that and I knew he would be able to get that. I got the car for like 800 below invoice sticker was like 25,900 or something

I'm on my second lease w/ VW. Credit score is a major factor. Luckily mine is good. I broke my first least 6 months early to get into a GTI. As long as you don't damage the car or anything - you will likely be able to turn it in at the 3 year mark and the value will pay the residual off. I rear ended someone in my Golf so they had to roll over about $1,400 into my new lease. That added a bit to it, but nothing too striking.

Lease will be cheaper and if you are not sure about wanting to buy it. Lease it and think it over for 3 years.

myMK6fool said:

I'm on my second lease w/ VW. Credit score is a major factor. Luckily mine is good. I broke my first least 6 months early to get into a GTI. As long as you don't damage the car or anything - you will likely be able to turn it in at the 3 year mark and the value will pay the residual off. I rear ended someone in my Golf so they had to roll over about $1,400 into my new lease. That added a bit to it, but nothing too striking.

Lease will be cheaper and if you are not sure about wanting to buy it. Lease it and think it over for 3 years.

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That's why I leased hoping in 3 years the scirocco comes over =) ! Plus for the time being I would like to pocket a extra 100 or so bucks compared to financing and enjoy being 21

myMK6fool said:

As long as you don't damage the car or anything - you will likely be able to turn it in at the 3 year mark and the value will pay the residual off.

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unless you thrash the car or something, you won't owe anything at lease end OP, and if you are real nice to the car, and crafty, you can sell it at lease end and pocket the equity whilst paying off VW. leasing can work for you if you got the right tools

Lots of great information already, so I dont have much to add but my experience.

The only car Ive leased was the Mk5 Rabbit I had. For me it was a wise financial decision as the car was a "bandaid" to get me through 3 years until I was making more in my job. I ended up turning the car in a bit early to buy my Mk6 GTI. Leasing isnt for everyone but can be smart in certain situations. People laughed at me for leasing but shut up when I asked what they did to pay for their apartment (aka lease). I put nothing down on the Rabbit and paid roughly 250 a month for solid and fun transportation for nearly 3 years.

the new mk7 have electronic hand brake :thumbdown: get the 6! so glad i did when i did and thats making me lean towards definitely buying it...aint nobody got time for pushing buttons to fwd drift lol but i leased mine and worked out great for me im 21 and at this time in life the extra 100 bucks i get to pocket a month compared to financing is nice i have some more spending money. i got my car for 42 month lease 12k a year tax and everything rolled in only thing i pay up front was dmv and they covered first month payment and i was at 301 a month 53% residual buyout of like 12,940 give or take