Lease Buyout incentive

[VeeGolf]

Does anyone know if VW is/will be offering a lease buyout incentive at the end of an eGolf lease? Nissan offered a $6500 incentive off the Leaf last year. It was still a bad deal.

The residual value in my lease contract is listed at $11,926. These things are depreciating like crazy. Based on the Leaf's history and the fact that 200 mile EV's are already here, I'm willing to bet there will be a boatload of used, low-mileage eGolfs selling in the $6-8K range when I turn in my lease late next year. Am I being too pessimistic? LMK what you think.

 

[johnnylingo]

I believe a few people here reported getting something in the mail about theirs being lowered, but can't remember specifics.

The residual on my 2016 SE is $13.7k @ 2 years / 20k miles. I think it's slightly high but am not expecting VW to lower it. This being said, I may ask them about it this summer at the 1-year anniversary.

 

[forbin404]

Does anyone know if VW is/will be offering a lease buyout incentive at the end of an eGolf lease? Nissan offered a $6500 incentive off the Leaf last year. It was still a bad deal.

The residual value in my lease contract is listed at $11,926. These things are depreciating like crazy. Based on the Leaf's history and the fact that 200 mile EV's are already here, I'm willing to bet there will be a boatload of used, low-mileage eGolfs selling in the $6-8K range when I turn in my lease late next year. Am I being too pessimistic? LMK what you think.

Everyone keeps saying the '200 mile" cars are here.
You are aware the Chevy Bolt is Leasing at $399/month? Compare to the Golf which is $199 right now, I don't see where they will devalue to car for some 'high range car' that is $200/month more.

 

[miimura]

In addition, the Leaf has significant battery degradation after 3 years, which led to its extremely soft resale value. I don't think there is any solid evidence that the e-Golf has significant degradation, so I expect it's resale to hold up significantly better.

 

[VeeGolf]

Does anyone know if VW is/will be offering a lease buyout incentive at the end of an eGolf lease? Nissan offered a $6500 incentive off the Leaf last year. It was still a bad deal.

The residual value in my lease contract is listed at $11,926. These things are depreciating like crazy. Based on the Leaf's history and the fact that 200 mile EV's are already here, I'm willing to bet there will be a boatload of used, low-mileage eGolfs selling in the $6-8K range when I turn in my lease late next year. Am I being too pessimistic? LMK what you think.

Everyone keeps saying the '200 mile" cars are here.
You are aware the Chevy Bolt is Leasing at $399/month? Compare to the Golf which is $199 right now, I don't see where they will devalue to car for some 'high range car' that is $200/month more.

The next gen Leaf will also be a 200 miler... I would expect VW to compete.
Sub 100-milers will be relegated to golf cart duty by 2020 :lol:

 

[VeeGolf]

In addition, the Leaf has significant battery degradation after 3 years, which led to its extremely soft resale value. I don't think there is any solid evidence that the e-Golf has significant degradation, so I expect it's resale to hold up significantly better.

What's your take on the 500e? They are so cheap. Battery degradation as well?

In any case, I like my eGolf, it's unique, and I'd like to keep it after the lease. I'll call VW to see if there's any wiggle room on the buyout as the date draws nearer.

 

[miimura]

In addition, the Leaf has significant battery degradation after 3 years, which led to its extremely soft resale value. I don't think there is any solid evidence that the e-Golf has significant degradation, so I expect it's resale to hold up significantly better.

What's your take on the 500e? They are so cheap. Battery degradation as well?

In any case, I like my eGolf, it's unique, and I'd like to keep it after the lease. I'll call VW to see if there's any wiggle room on the buyout as the date draws nearer.

I haven't done any research on 500e battery degradation because it's too small for my needs and the crash ratings were too poor. That is probably the ultimate low price, short distance, single driver commuter car though.

You should be able to get an idea about VW buyout policies by looking at VWvortex or similar to see policies on their other vehicles. Toyota, for example, has a firm policy about not negotiating residuals, so that policy applies to the RAV4 EV as well. So, people who still like the RAV4 EV have purchased lower mileage cars on the open market for less than their residual, then returned their original leased car.

 

[johnnylingo]

Toyota, for example, has a firm policy about not negotiating residuals, so that policy applies to the RAV4 EV as well. So, people who still like the RAV4 EV have purchased lower mileage cars on the open market for less than their residual, then returned their original leased car.

Same thing has been happening with the i3. BMW isn't budging on residuals of over $30k, so the cars are going back, then sell on the used lots for $5-10k less than that.

 

[forbin404]

In addition, the Leaf has significant battery degradation after 3 years, which led to its extremely soft resale value. I don't think there is any solid evidence that the e-Golf has significant degradation, so I expect it's resale to hold up significantly better.

What's your take on the 500e? They are so cheap. Battery degradation as well?

In any case, I like my eGolf, it's unique, and I'd like to keep it after the lease. I'll call VW to see if there's any wiggle room on the buyout as the date draws nearer.

500e's are cheap because they are the size of postage stamps.

Two adult sized people in a 500e are rubbing shoulders.

 

[VeeGolf]

Toyota, for example, has a firm policy about not negotiating residuals, so that policy applies to the RAV4 EV as well. So, people who still like the RAV4 EV have purchased lower mileage cars on the open market for less than their residual, then returned their original leased car.

Same thing has been happening with the i3. BMW isn't budging on residuals of over $30k, so the cars are going back, then sell on the used lots for $5-10k less than that.

Good point. The residual to market value discrepancy may not be as extreme for the eGolf, but the trend among most ZEVs suggests there will be a difference. My gut-math says that in 3 years most ZEVs are at 1/3rd of original sticker price (even the Rav4, which I consider a very unique EV). It's uncharted territory. I would love to keep my eGolf to avoid the hassles that go along with lease disposition, but it seems like an unlikely scenario.

Thanks for all of your input.

 

[bizzle]

I've been wondering about this, too. If I could keep our golf for $6K I will, but I'm not paying $10K for it. VW doesn't have any incentive to help us out, though, so I'm not holding my breath. I imagine they prefer we step into a new lease.

 

[miimura]

I've been wondering about this, too. If I could keep our golf for $6K I will, but I'm not paying $10K for it. VW doesn't have any incentive to help us out, though, so I'm not holding my breath. I imagine they prefer we step into a new lease.

They're going to take a loss on it after you turn it in also. I think Nissan thought it better to keep them off the auction market and give the lessees the chance to keep the cars at a reasonable price.

 

[bizzle]

I think the point I'm concerned about is that they are selling these at a loss and that they are using them to offset their other vehicles' emissions. If they are going to take a loss at auction or take a loss by allowing us to keep them for a lower residual, they are likely to see that pushing us into a new lease/purchase is at least going to generate more green credit for them so they're less likely to let us buyout at a much reduced purchase price. Unless, of course, that lease purchase counts towards green credit but I don't think it does. Do they even need to sell them or do they get credit for manufacturing them?

 

[miimura]

At this point in VW's march toward electrification, they need the credits to comply with all the regulations - ZEV, CAFE, etc. So, if the market value is less than the residual, it doesn't really matter to them. If you return your leased car and lease another, they get more credits for delivering more vehicles. The side effect is that more affordable EVs are on the used market. To me, it's all good, and just the cost of doing business today.

 

[JoulesThief]

At this point in VW's march toward electrification, they need the credits to comply with all the regulations - ZEV, CAFE, etc. So, if the market value is less than the residual, it doesn't really matter to them. If you return your leased car and lease another, they get more credits for delivering more vehicles. The side effect is that more affordable EVs are on the used market. To me, it's all good, and just the cost of doing business today.

Yes, I agree, it's just the cost of doing business these days.