What charges at the end of the lease are you liable for?

[cove3]

I bought my e-golf as it never occurred to me to lease. I had a tax writeoff 2014 windfall but didn't realize you can get the 7500 netted against the lease price. However, apparently 7500 miles is the lowest lease, but I only drive 2500 miles/year so I'd be turning in a 7500 mile car, not a 22,500 mile car that the lease was based on.

But here's the question. How do you get charged for minor damage that you normally wouldn't fix via insurance when you return the car? Say a stone ding in the windshield or a dent in the door from a grocery cart. It seems like the dealer could exploit this by charging for a new windshield or a high price markup for body work. Just wondering how this works and whether I should have leased. I figure VW has an army of MBA's figuring out residual values soas to make it difficult to outsmart them as they know future battery technology, inflation, interest rates, future pricing of new models etc

Ron

 

[erwheezy]

There's usually a wear and tear plan you can purchase. Runs around 500-750 depending on your negotiation skills. Covers small dents and chips. Curbed wheels and interior damage. I forgot what the total value was, maybe 5k total

 

[miimura]

I got the wear and tear policy with our e-Golf. I have never leased before and was basically scared into it by the finance guy. In my ignorance, I did not negotiate it down and paid just over $1,000 for it. However, it was clearly stated that it has a $10,000 limit and any single item over $1,000 has to go on your insurance.

 

[DasCC]

You're allowed a few dints and dings. I personally never purchased wear and tear protection.

this PDF is a helpful guide: https://www.vw.com/content/dam/vwcom/PDFs/end_of_lease_process.pdf

I'm definitely curious at what the real world values will be on these cars in 3 years. The finance companies are expecting worst, the lease residuals are so low that in three years the payoff on mine will be at 12k. It'll be interesting to see what the demand is on the private party side. I would think that you could sell a gently used 3 year old e-golf for more than that.

 

[jack8trades]

You're allowed a few dints and dings. I personally never purchased wear and tear protection.

this PDF is a helpful guide: https://www.vw.com/content/dam/vwcom/PDFs/end_of_lease_process.pdf

I'm definitely curious at what the real world values will be on these cars in 3 years...

I think if the federal tax incentive is not renewed or replaced with something significant in 2017, and e-Golf batteries seem to be holding up well, that resale prices may be better than predicted. A lot also depends on how good and well-priced extended range EVs are by that time.

Even if VW doesn't eventually offer upgraded replacement batteries (like Tesla has for the Roadster,) I do believe that the aftermarket industry will step up and begin offering them before too long. That would probably boost the value of affected used EVs. The problem/cost of modifying the electronics to support the added capacity might be significant, though.

 

[johnnylingo]

the payoff on mine will be at 12k....I would think that you could sell a gently used 3 year old e-golf for more than that.

Completely agree, assuming these three things hold true:

• - The battery on a 3 year old e-Golf still holds full charge (or close to it)
  - EV cars with ranges of 80-100 miles are not obsolete
  - The government rebates do not increase

The 200-300 mile range batteries aren't coming until 2018 at soonest and the e-Golf's battery technology appears solid so far. Obama wants to increase the tax credit to $10,000 for the non-wealthy but tough to say if that'll happen.

 

[stevestrange]

Well, if the resale on LEAFs is any judge (e.g., $9K for a 2011 SL in excellent condition with 15% battery loss), then $12K will be on the high side for an 80-mile BEV in late 2018. If at least one or two 200-mile BEVs aren't out by late 2018, the news of them coming very soon certainly will be. That's bound to stunt resale values. It's true that the VW (supposedly) has a battery that will hold up better than the original LEAF battery, but I don't think that will be enough. Frankly, I am hoping that VW offers me a grand or two to buy the car at the end of the lease, so that they don't have to take it back, recondition it, and then have to sell it or auction it off at something well below the residual. We shall see in three years.

We own a 2011 LEAF, and we decided to keep it since it's lost so much value already, we might as well just keep driving it as it suits our needs as our second EV. I sure wish I had leased it -- Nissan has been offering thousands for people to buy out their leases.