Purchase price higher than the "lease price"?

[MLS]

I prefer to buy a car, not lease it. However, the dealers really push the lease aggressively. In addition, they list prices that are only good for the lease. For example, a 2015 SEL Premium at one dealer was $24,497 - of course when you call, this is the "lease price" and the buy price is $32,000 because VW gets that $7500 tax credit when they lease it to you. It's nigh impossible to figure out the actual price if you want to buy the car until you're about to sign paperwork!

I tried Edmunds.com "price promise" and got $24,485 certificate to take to a dealer on a 2016 SE model. Sounds good but I still feel like I'll get to the dealer and the price will skyrocket. It's bad enough with any car, but these tax credits are just one more way for dealers to lie about the actual price!

Anybody have experience with the Edmunds "price promise" and whether it really works?

I think the whole "lease price" is a scam because I'm leasing it - not buying it!

 

[JoulesThief]

I didn't find that to be the case at all... I went and found a dealership that had exactly what I wanted. I called, asked to speak to the internet manager, told them what I was looking for, asked them to email me their best price, that I had no trade in, I was just looking to buy, didn't need financing.

That is how I got the best price on my 2015 e-Golf SEL in October... about $25,300 before taxes, license and doc fees.

I tell them straight out that I am price shopping, and that I am looking to get this deal done in the next few days, and would they like to earn my business.

Do that to 4 or 5 dealerships, be flexible on color of car you'll accept, and you should be able to get a good deal. Key words, be flexible on color.

 

[johnnylingo]

Key words, be flexible on color.

"If you're thinking about my baby, it don't matter if your black or white".

...or maybe silver.

 

[FlyPenFly]

From negotiating a lot recently, it seems dealers have anywhere between 2-4k off MSRP room in the 2016 SEs without taking into account any credits or VW bonuses. Not sure how much more/less for the SEL but I imagine the situation is dynamic.

The $7500 federal credit is essentially forwarded to you on the lease but for purchase, you have to do all the paperwork and application yourself.

 

[MLS]

I didn't find that to be the case at all... I went and found a dealership that had exactly what I wanted. I called, asked to speak to the internet manager, told them what I was looking for, asked them to email me their best price, that I had no trade in, I was just looking to buy, didn't need financing.

That is how I got the best price on my 2015 e-Golf SEL in October... about $25,300 before taxes, license and doc fees.

I tell them straight out that I am price shopping, and that I am looking to get this deal done in the next few days, and would they like to earn my business.

Do that to 4 or 5 dealerships, be flexible on color of car you'll accept, and you should be able to get a good deal. Key words, be flexible on color.

This sounds like I want to do. However, dealer after dealer tells me the "conquest bonus" or "financing bonus" is only available if I finance through VW credit. Maybe with a new month and new incentives, this will improve. Dealers that include the $7500 tax credit in their advertised price should not be allowed to do so. Since not everybody can get that full credit, and it's the government giving it, not them, then they shouldn't be allowed to advertise a price like that.

 

[JoulesThief]

I didn't find that to be the case at all... I went and found a dealership that had exactly what I wanted. I called, asked to speak to the internet manager, told them what I was looking for, asked them to email me their best price, that I had no trade in, I was just looking to buy, didn't need financing.

That is how I got the best price on my 2015 e-Golf SEL in October... about $25,300 before taxes, license and doc fees.

I tell them straight out that I am price shopping, and that I am looking to get this deal done in the next few days, and would they like to earn my business.

Do that to 4 or 5 dealerships, be flexible on color of car you'll accept, and you should be able to get a good deal. Key words, be flexible on color.

This sounds like I want to do. However, dealer after dealer tells me the "conquest bonus" or "financing bonus" is only available if I finance through VW credit. Maybe with a new month and new incentives, this will improve. Dealers that include the $7500 tax credit in their advertised price should not be allowed to do so. Since not everybody can get that full credit, and it's the government giving it, not them, then they shouldn't be allowed to advertise a price like that.

So finance it... for one month, then pay it off in full. There is no penalty for paying the vehicle off in full early. Don't discuss with them your intentions, just do it.

 

[bizzle]

I didn't find that to be the case at all... I went and found a dealership that had exactly what I wanted. I called, asked to speak to the internet manager, told them what I was looking for, asked them to email me their best price, that I had no trade in, I was just looking to buy, didn't need financing.

That is how I got the best price on my 2015 e-Golf SEL in October... about $25,300 before taxes, license and doc fees.

I tell them straight out that I am price shopping, and that I am looking to get this deal done in the next few days, and would they like to earn my business.

Do that to 4 or 5 dealerships, be flexible on color of car you'll accept, and you should be able to get a good deal. Key words, be flexible on color.

This sounds like I want to do. However, dealer after dealer tells me the "conquest bonus" or "financing bonus" is only available if I finance through VW credit. Maybe with a new month and new incentives, this will improve. Dealers that include the $7500 tax credit in their advertised price should not be allowed to do so. Since not everybody can get that full credit, and it's the government giving it, not them, then they shouldn't be allowed to advertise a price like that.

Dealers don't advertise the 7500 credit in their selling price. They are advertising low monthly lease costs that are based off the credit, which everyone is getting regardless of income when they lease since it goes to VW. There's nothing wrong with what they're advertising.

It's not a very difficult calculation, $7500 less than the MSRP if you lease and the MSRP if you don't. If you can negotiate then even better.

 

[RonDawg]

I prefer to buy a car, not lease it. However, the dealers really push the lease aggressively. In addition, they list prices that are only good for the lease. For example, a 2015 SEL Premium at one dealer was $24,497 - of course when you call, this is the "lease price" and the buy price is $32,000 because VW gets that $7500 tax credit when they lease it to you. It's nigh impossible to figure out the actual price if you want to buy the car until you're about to sign paperwork!

As you've figured out, they're playing a game with you. But you don't have to lease to get this price. You have to front the $7500 and wait until next tax season to get it back, but as long as you qualify for the full credit, the car will end up costing $24.5k before tax (which if in California is calculated on the $32k price, not the lower price) and other fees.

Now, the dealer will sometimes give you additional "cash on the hood" if you finance with the manufacturer's own financing arm. As Joules said, if this is the case why not just finance the car and pay it off after one payment?

 

[MLS]

I did try the Edmunds price promise at one dealer on an SE (about 24.5k) and they did say they'd honor the price, as long as I bought the car through VW credit. They say VW gives them incentives if they use VW financing. I did get a price promise price that looks almost too good to be on a 2015 model (10k below MSRP). I'm loathe to go that dealer because I have a feeling they are counting the federal tax credit in the price...

 

[JoulesThief]

I did try the Edmunds price promise at one dealer on an SE (about 24.5k) and they did say they'd honor the price, as long as I bought the car through VW credit. They say VW gives them incentives if they use VW financing. I did get a price promise price that looks almost too good to be on a 2015 model (10k below MSRP). I'm loathe to go that dealer because I have a feeling they are counting the federal tax credit in the price...

Get them to email you the price before taxes, registration and doc fees, ask for the break down of the other fees, then an Out The Door Price in an email.

Print it out, go down there, do the deal. you can take the $7500 for 2016 tax credit, and get the state 2500 rebate in about a month. You will pay 15k or slightly less, before registration sales tax and doc fee. Add about 2400 to 2500 on for all of that.

 

[MLS]

Get them to email you the price before taxes, registration and doc fees, ask for the break down of the other fees, then an Out The Door Price in an email.

Print it out, go down there, do the deal. you can take the $7500 for 2016 tax credit, and get the state 2500 rebate in about a month. You will pay 15k or slightly less, before registration sales tax and doc fee. Add about 2400 to 2500 on for all of that.

Thanks for the advice. One other question: If I get a good deal on an SE, will I kick myself later for not having the Quick Charge? I've got a secure job for the foreseeable future that's less than 10 miles away and I cannot recall the last time I've driven more than 50 miles away from home. If I travel I fly or take a train or bus or something.

 

[RonDawg]

Quick Charge may not be useful for you, particularly if you live in an area where they are few or non-existent. But ones with a QC port have the 7.2 kW charger and if you do need to charge on the road to make your destination, or need a quick turnaround time, the faster charger is going to make the ownership experience more satisfying.

The SE is now available with a QC/7.2 kW charger option for $1700, so you may want to see about getting one of those if an SEL is out of your budget. Or if you can live without CarPlay/Android Auto, look for a leftover 2015 (they all have QC/7.2 kW regardless of trim level) and bargain hard on it since it's last year's model.

 

[bizzle]

Get them to email you the price before taxes, registration and doc fees, ask for the break down of the other fees, then an Out The Door Price in an email.

Print it out, go down there, do the deal. you can take the $7500 for 2016 tax credit, and get the state 2500 rebate in about a month. You will pay 15k or slightly less, before registration sales tax and doc fee. Add about 2400 to 2500 on for all of that.

Thanks for the advice. One other question: If I get a good deal on an SE, will I kick myself later for not having the Quick Charge? I've got a secure job for the foreseeable future that's less than 10 miles away and I cannot recall the last time I've driven more than 50 miles away from home. If I travel I fly or take a train or bus or something.

Sounds like my situation. I haven't missed the QC or the 7.2kw charger.

 

[kirby]

So finance it... for one month, then pay it off in full. There is no penalty for paying the vehicle off in full early. Don't discuss with them your intentions, just do it.

I was up-front with the dealers about my intent to finance only to get the conquest cash and pay it off soon. All the ones I talked to in the SF Bay Area didn't care, but the "minimum number of months before payoff" quotes I got were all over the map from one month to nine months. In the end, I never checked with VW credit how long I actually have to have the loan because I got 0% financing for 60 months. I don't quite get why VW Credit wanted to give me both $1500 and 0% financing, but they did so took it.

I bought my 2016 SEL similar to the way JoulesThief recommends, I contacted every dealer I was willing to drive to via either email or their online form and gave them essentially a form letter saying I had done a test drive, I was ready to buy this week, here's what I want, here's where I am flexible, I will buy from the where I get the best out-the-door price. I also said there would only be one round of bids from them, I wouldn't go back and forth with anyone, so they should send me their final best deal.

 

[MLS]

Thanks for the tips and advice, everybody. About a week ago, I purchased a 2016 SE in Pacific Blue sans the Quick Charge package. $24K plus freight and tags - so almost exactly $25K. No tax on electric cars since I live in Washington DC. After the federal tax rebate it's a brand new car for $17.5K! Even the cheapest Honda Civic is $16.5K, plus then you add freight, tax, and tags! I was going to hold out for an SE with the Quick Charge package, but there were none available anywhere near the Metro DC area and a special order was a 4-month or more wait... and my old car was living on borrowed time already.

I'm happy with the car so far - much better handling than my old Subaru and the acceleration is quite impressive. Perfect car for DC area traffic; I can run it in the highest regenerative mode (B) most of the time. CarPlay is actually better than the additional infotainment features in the SEL, so I'm very happy with that as well.