Lease Cost Breakdown

[NewbieEV]

Just leased an egolf and the dealer (Northern CA) shared with us the breakdown for pricing. thought this would be helpful to others looking into this:

MSRP 36265
invoice 34847
dealer trading margin 1418

tax credit 7500
VCI lease bonus 2000
down payment 1425
dealer contribution 141

cap cost 25199
residual value 40% (36 mo lease)
residual value 14506

monthly payment 299
depreciation 297
rent 2

due at signing 2349 is composed of
first mo lease 299
acq fee 625
down payment 1425

above are the national VW advertised 2349 + registration due at signing / 299 monthly payment, based on 10K mi/yr.
we found that many dealers in Northern California are marking up beyond this, so worth shopping around.

 

[svhoneymoon]

I'm in the same region, just leased on Monday. I managed to get a $332 dealer contribution. I did a 12k mile lease with 39% residual.

My experience was the same with many dealers marking up the cost, some not being so straightforward about it, one saying they just wouldn't honor the lease pricing due to demand.

What combo did you get?

Paul
Pure White/Black

 

[svento]

Just to clarify for everyone, the $299 monthly payment you mentioned doesn't include state/local taxes... right?

 

[NewbieEV]

That is correct, the 299 is before taxes. we negotiated to get 12k mi/yr for 315 (before taxes), though they told us that would typically cost more (39% residual instead of 40%). a different dealer had offered an internet price of 315 before tax for 15k mi/yr, but we did not check this out. the dealer we went to had a bit more inventory and we got a night blue/black interior one, whereas it appears that the majority of the inventory out there is white/black.

I have heard from another dealer than VW will call you up partway into the lease to offer additional miles at a lower cost (something like 12 cents/mi). So depending how much we use it, we can probably still avoid paying 20 cents/mi additional.

There appears to be more demand for EVs in CA (compared to east coast), so unfortunately that translates to some dealers getting away with marking up significantly.

 

[svhoneymoon]

$315 is about right for 39% residual, 25199 cap cost, 0.000050 money factor.

I'm pretty sure I know which dealer you went to.

It sounds like SoCal is better pricing as well. I bought my last car in Pasadena due to bay area dealer markup. The trip back in an e-Golf would be an an adventure

 

[arcane]

I contacted many dealers about the national lease, and thought I would get better results from dealers in areas that are not near major cities, but those dealers were the ones who significantly marked up the prices and were not up front. It doesn't appear to be against forum rules to post the name of dealerships, and it would probably be helpful to ID those that provided good prices and service (mods, please correct me if I'm wrong). Will be interesting to see what the next lease special will bring since the current one ended January 2.

@NewbieEV
Thanks for posting the details of your lease. I was wondering how the $2349 broke down but didn't get a straight answer from any salespeople. Would you mind posting or sending a PM of the dealer you went with, and the other who would accept $315 for a 15K/mile lease?

@svhoneymoon
What did you mean by a "$332 dealer contribution"? What was your monthly lease before taxes? Would appreciate if you would provide dealership information if possible.

Thanks for the info!

 

[svhoneymoon]

Oakland VW gave $332 off MSRP in addition to the $2000 VW contribution. The deal that just ended included a $141 dealer contribution to get to the advertised numbers (excl tax/fees). They said they had 5 cars (must have been inbound since only mine was there), so seemed they wanted to offload one.

Dirito VW (Walnut Creek) honored the lease special, and I almost bought from them (didn't have my color), as did Dublin VW. Boardwalk VW said they weren't doing it at all. Hayward VW sort of said they were doing it but then had a bunch of random markup (detail fee on a new car.. really?).

In one case a dealer had marked up the acquisition fee by $80, the finance guy where I bought the car said that VW would reject a deal if a dealer sent that to them. However, thats what they quoted me ($705 vs $625), so maybe they just add it to MSRP. (though you'd think to get the $2k VW part VW would prevent that too. I dunno though).

In the SF Bay Area, there's a combination of strong demand and limited supply, and also a fair number of buyers out there that are really not price sensitive and/or conscious.

I can't blame the dealers for taking advantage of it, I just wish some had been more upfront to avoid wasting my time.

paul

 

[arcane]

@svhoneymoon

Great, thanks for the information on the dealerships. I only visited one dealership in person and decided to internet shop the other dealers, so was able to weed out more greedy dealers. I won't list the ones that marked up prices, or weren't forthcoming with information. The dealerships that were the most direct with pricing that didn't exceed the national lease special were Capitol VW in San Jose, Sunnyvale VW, Winn VW in Newark, and Vacaville VW. Of these, Vacaville VW gave the most pertinent information without having to dig for it, and wanted to do things by the book.

 

[NewbieEV]

I checked inventory on cars.com and then emailed those of most interest. Dublin VW and Hayward had the best offers. Boardwalk and Capitol weren't willing to go with national lease terms. Interesting to hear from someone else Capitol was willing to give a better deal - I don't know if it depends on the salesperson you happen to get. ("This American Life" (NPR) had an interesting program about a year ago where they spent a day with salespeople at a dealership on the east coast.)

I'm usually willing to go within a few hours' drive for a car but it occurred to me that I did not want to exceed the driving distance of the car (range anxiety, indeed!).

 

[arcane]

I checked inventory on cars.com and then emailed those of most interest. Dublin VW and Hayward had the best offers. Boardwalk and Capitol weren't willing to go with national lease terms. Interesting to hear from someone else Capitol was willing to give a better deal - I don't know if it depends on the salesperson you happen to get. ("This American Life" (NPR) had an interesting program about a year ago where they spent a day with salespeople at a dealership on the east coast.)

I'm usually willing to go within a few hours' drive for a car but it occurred to me that I did not want to exceed the driving distance of the car (range anxiety, indeed!).

I did the same (checked cars.com and autotrader.com) and e-mailed most of the dealers. Like you, I also was apprehensive about leasing a vehicle too far from home base as it would be problematic if I had service issues. Where did you finally end up leasing?

I only heard part of the NPR program, but it was very interesting to hear about the inner workings behind a car dealership. Definitely not an easy gig.

 

[svhoneymoon]

@arcane - I'm sure you can get the car serviced at any VW dealer that sells e-Golfs, so theoretically Sacramento could be an option. (in Eco+ mode all the way)

 

[tigger19687]

That is not always the case.
When I bought my Dodge Ram, I moved and was told that they didn't sell me the truck and that I needed to take it to the one I bought it from to get any warranty work done on it.
Bull poop. I never went back to that dealer

@arcane - I'm sure you can get the car serviced at any VW dealer that sells e-Golfs, so theoretically Sacramento could be an option. (in Eco+ mode all the way)

 

[svhoneymoon]

@tigger19687 It seems like VW NA keeps a shorter leash on their dealers, though I guess I'll find out since I won't get warranty work where I bought it.

That is not always the case.
When I bought my Dodge Ram, I moved and was told that they didn't sell me the truck and that I needed to take it to the one I bought it from to get any warranty work done on it.
Bull poop. I never went back to that dealer

 

[ACGolf]

I'm trying to lease an eGolf, asking for 15k mile/yr allowance for $325/month x 36 mos. The internet sales manager at the dealer tells me the drive off is approx $3,600 ($2,349 + 9% tax on the $7,500 fed tax credit + DMV registration). Also, he told me the $2,349 doesn't include the 1st month's lease payment, which your post said it does.

Would you kindly let me know if your deal includes:

-sales tax on the $7,500 fed tax credit?
-is the dealer trying to rip me off by saying the 1st month lease payment is not included in the $2,349
-lastly, everyone's opinion of $325/mo for 15k miles/allowance, is this a good deal to negotiate (what would you suggest that I negotiate for)?

 

[NewbieEV]

ACGolf,
the deal I got was $2349 at signing, which included 1st months payment. there was no additional tax on the 7500 fed tax credit. so they are trying to make some money from you.

When I researched how leases were set up online, I did see that taxes on credits are often included, but it shouldn't be in this deal as advertised.

The advertised deal is $299 for 10K mi/year and 0.20 per mile above. I am told that VW will likely offer additional miles for less, say 12 cents/mi at some point into the lease (though I do not know this for sure; but look on one of Rachel's posts, she suggests something similar). $325 for 15 mi/yr translates into 6 cents/mi for those additional miles. this would be a good deal. I think you should try this and see what you get, but think about what would make the deal for you.

All of this depends on what the dealer is willing to do. A lot depends on the incentives and goals for the dealership that we don't know about. i have heard that all dealers have monthly quotas so it is better to go at the end of the month. I would suggest contacting several dealers and seeing who has the best deal initially, and then go and negotiate with them to see where you can get them to move. I found with this car and our previous car that some dealers are just more willing than others to give you a better deal, and the spread can be striking. it is definitely worth comparison shopping.

I am loving the car, by the way. I drove 88 miles yesterday and had 18 left at the end of the day (ok, i charged for maybe 45 minutes at 120V part-way through the day). I find that i like the acceleration so i don't use Eco or Eco+ as much as the regenerative braking.

Good luck, please tell us what happens.

 

[svhoneymoon]

@NewbieEV

So the line on your leasing document that says CAP RED TAX amount is only tax on your $1425 down payment, as opposed to tax on $7500 + $1425?

I don't think legally the dealer can collect the cap reduction tax and then not give it to the state, so if the tax is not due on the federal rebate maybe others can get it back. The dealers I spoke to all said that per the national deal, sales tax was additional. (Since sales tax varies per state).

However, I think the tax is due. Think about it this way, if you were to buy the car for $34k ($2k off MSRP to keep it simple), and then collect the $7500 from the federal government, you would still pay state sales tax on the $34k. You can't avoid the sales tax on the $7500.

Your down payment break down didn't include registration fees, did you roll that into your monthly payment (putting less towards cap reduction?) Something is not adding up.

@AGolf The national deal included the 299 first month payment.

I assume 325 is without sales tax?
325 * 1.09 (tax) * 35 + 3600 ~= $16k over 3 years. (- $2500 state credit of course).

The national lease special should have been around 14900 (10k miles, 9% sales tax, specific reg fees may vary).

So thats a lot for 5k miles more a year.

It seems like you should be able to do better. You should get the full line item break down and then you can figure out what they're actually doing. The residual for 15k miles is going to be set by the VW leasing company, so anything else is just shuffling numbers around.

 

[ACGolf]

Just leased a night blue eGolf from SF VW.

Overall, paid $2,700 out the door, which includes:
- $1,222 down pmt
- $771 sales tax on the $7,500 fed tax credit applied towards lease + 1st mo payment
- $298 1st mo pmt
- $278 DMV Registration
- $80 dealer doc fee
- plus some misc fees like $8.75 tires fee, doc tax, elect registration fee

then $298 + tax x 35 mos

with 15,000 miles/year which I will use up. Residual value $13,055

Seems like a decent deal, Dublin VW would not beat it and Walnut Creek VW wants $324 + tax per month.

 

[svhoneymoon]

@ACGolf sounds like a great deal. Congratulations!

 

[gauchomaniac]

ACGolf, what does the monthly payment come out to be with tax and any other fees?

 

[ACGolf]

ACGolf, what does the monthly payment come out to be with tax and any other fees?

$324.23 ($298 + 8.5% Contra Costa tax). There should be no other tax or fees, otherwise they're trying to rip you off.

My drive off was $2,700 where Walnut Creek wanted $3,600 & $351 ($324 + tax) for the same lease.