No need to get offended because you didn't understand. I put the numbers in a calculator and they told me what to tell you. Nothing retarded about it.
NOW, in the lease scenario I get a new car every 3 years AND stay in warranty/free maintenance. And have ZERO risk on my part in doing so. All while paying the same. Though my payments are almost $200/mo LESS the whole time too
Just in years 4/5 of the purchase will be tires, brakes, spark plugs, 4 oil changes, tire rotations, routine maintenance, etc. And lets hope nothing breaks either. It would take quite a low interest rate to make up for that tangible cost/risk assumed and the intrinsic value of getting a new car every 3 years instead of 5.
And I feel better about either retaining that money in the value or paying it to VW then I do to the bank on interest or the state on taxes... Even if the amount is the same.
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And without going too deep, ANY negotiations done on the purchase price have a greater effect on a lease then they do on a purchase. 2% negotiated discount on a purchaase is 2% of 100%. 2% on this lease is 2% of 43% (4.65% net), just the portion you are paying since the $20,293 residual stays fixed regardless of the purchase price.
Purchase
$36,260 - 2% = $35,534
$35,524 is 98% of $36,260
Lease
$36,260 - $20,293 = $15,967
$36,260 - 2% = $35,534 - $20,293 = $15,241
$15,241 is 95.45% of $15,967
SEE... Same 98% negotiated purchase price yields a 2% discount on the purchase but a 4.55% discount on the lease. (Slightly off of the 4.65% number due to rounding)
Now, the industry average is 92%. Lets run it at 95% because it is an 'R' and its special...
Purchase
$36,260 - 5% = $34,447
$34,446 is 95% of $36,260
Lease
$36,260 - $20,293 = $15,967
$36,260 - 5% = $34,447 - $20,293 = $14,154
$14,154 is 88.6% of $15,967
Same 95% negotiated purchase price yields a 5% discount on the purchase but a 11.4% discount on the lease.
If you think a car salesman or even some idiot finance manager has any idea how this works, you are mistaken. They just see 'purchase price' and run with it. Then, after I get a written offer, they are stuck.
-------- That is why I can't stress the negotiability of a lease enough -------------
This lease is good. Not incredible or earth shattering, just good. It COULD be incredible/earth shattering if you take advantage of their (VW) grossly underestimated residual value and negotiate a little.
Do some of you really pay 100% MSRP on your cars??
Do some of you really not understand that you negotiate leases??
I know with the last 4 cars I have leased that I ended up getting the car out the door for anywhere from 90-94% of what the numbers were when I first walked in....