2011-12 Volkswagen Lease Rates – June 2011

Published by G
1106_vw_eos


VW numbers are practically the same as May’s. VW Credit seems to be providing support on the 39-month leases right now, which I do not recommend for California residents (an other residents who pay yearly dmv registration fees). Our registration fees are high (my 3-year old G37 was $325 and my Sonata was $425), so it doesn’t make sense to pay it twice in one year. Plus VW has a $350 disposition fee, so you will get reamed for nearly $600 at lease end. That doesn’t include going over your miles, wear-n-tear and tires (should you need it). With that in mind, if a 39-month lease works for you, the CC is a very solid deal at the moment. See calculation below.

For those who are interested, I wanted to share with you my experience dealing with a couple of So Cal VW dealers. During the research process for my last lease, I contacted three dealerships in LA/OC (McKenna, Timmons, Garden Grove) and here are the results:

Garden Grove never called me back.

Timmons called me a few days after I submitted an inventory request (their online inventory was terrible out-of-date). They told me they would get me a “no-haggle” quote on a Tiguan S and never got back to me.

The most interaction I had was with McKenna, which is same dealer my wife leased her Jetta from (although they have since relocated from Norwalk to Cerritos). These are the numbers I got from Luis Romero, the ISM at McKenna (yes, I mention his name on purpose. Think of this as a “bad” review).

For a GTI with Sunroof, they wanted $437 with tax per month and $850 at signing. Jetta TDI, $428 with tax per month and $850 at signing. These were basically off MSRP, with the $850 paying for your inception fees (bank fee rolled into lease). I was a bit pissed off at him for quoting a returning customer MSRP, so I moved on. Fast forward 30 days and I get an email asking if I was still on the market. So I tell him how “insulted” I felt that he would quote a returning customer such as a crappy price and here is his response…

“I apologize if you feel that way, the cars you are looking for are in high demand, and they are specialty items, and we have higher bids on the cars specially the TDI, but ultimately we are a business, and as such we are entitled to try to make a buck or two. I hope you find what you are looking, and what is more important at the price you are looking for. If there is anything I can help you with, please feel free to contact me.”

Yes, they are a business, and they are entitled to make money. Just as much as I am entitled to feel slighted and take my business elsewhere. If I get a VW again, I will more than likely use a broker, tired of dealing with local VW dealers.

On the other hand, the Harbor Hyundai was a breeze to deal with. Online inventory was accurate and pricing was below TrueCar right off the bat. Customer service was outstanding for a non-luxury brand. Highly recommend them. If you would like the contact info of the sales guy I dealt with, drop me line below.


Here is a sample calculation based on TrueCar’s Southern California sale price and do not include local taxes. Please note that your dealer calculations may vary due to local fees/taxes.

2012 VOLKSWAGEN CC SPORT AT (39-month)
MSRP – $30,435
Sale Price – $28,221
Monthly – $332+ tax
RWG Rating – 90.2

For Dealer Quotes, Click Here.


2012 VOLKSWAGEN CC SPORT AT
36 month | 15k miles | residual 52% | .00169 base money factor
39 month | 15k miles | residual 51% | .00016 base money factor

2012 VOLKSWAGEN EOS KOMFORT AT
36 month | 15k miles | residual 53% | .00027 base money factor

2011 VOLKSWAGEN GOLF 2DR HATCHBACK AT
36 month | 15k miles | residual 49% | .00130 base money factor

2011 VOLKSWAGEN GTI 2DR HATCHBACK AT
36 month | 15k miles | residual 53% | .00104 base money factor

2011 VOLKSWAGEN JETTA SEDAN S AT
36 month | 15k miles | residual 54% | .00174 base money factor
39 month | 15k miles | residual 53% | .00093 base money factor

2011 VOLKSWAGEN JETTA WAGON S AT
36 month | 15k miles | residual 49% | .00112 base money factor

2011 VOLKSWAGEN ROUTAN S
36 month | 15k miles | residual 43% | .00006 base money factor

2011 VOLKSWAGEN TIGUAN S 4MOTION
36 month | 15k miles | residual 53% | .00061 base money factor

2011 VOLKSWAGEN TOUAREG VR6 SPORT
36 month | 15k miles | residual 45% | .00088 base money factor

18 thoughts on “2011-12 Volkswagen Lease Rates – June 2011”

  1. Not surprised at treatment by VW dealers…when I was in market for a VW a few months back (after having an Audi – being a VWFS customer!), the dealers gave me shockingly high numbers – Santa Monica was a joke, Downtown VW not much better. Best offer was dealer in Glendale…internet guy there was terrific, assuming the actual purchase went smoothly!

    Don’t know why VW has such awful dealers…the cars are terrific.

    In any case, I bought a Prius the day of the earthquake…and couldn’t be happier! Word of warning for Toyota lessors – the quote does NOT include GAP insurance…you get hit with that in the finance office…

  2. Hey G,

    I have a question on a lease deal I’ve been working on from VW for a new Touareg, here are the numbers:

    2011 Touareg VR6 Sport
    MSRP: $45,770
    Cap Cost: $43,523
    Less Lease Cash of: $3,500
    New Cap Cost: $40,023

    36 Month Lease
    47% Residual
    .00088 Money Factor
    Sales Tax: 6.825%
    12K Miles a year

    That gives me a total monthly payment of w/ title/reg and acquisition fees and tax included of $626.50

    Is this a good deal?

    Your calculator gives it a score of about 79, and I’ve seen that in past months there’s been higher residuals and lower money factors, but I don’t know if they offered $3500 in lease cash then.

    I’d love your take on this deal.

    Thanks,

    Chris

    P.s. I have a 2008 MB w/ a payoff of about $22k and I could probably sell it private party for $29k or trade it in for $27,500 and dramatically decrease my monthly payment, would it be a good idea to use this to my advantage on this lease?

    • @chris. I personally like to keep my cash in hand because cap cost reduction is generally lost in the event of theft or total-loss accidents. The Touareg isn’t a very good lease normally, even with the extra cash they throw at it. However, this could the best Touaregs ever get, so if you are fixed on getting one, it might not be a bad idea.

  3. Thanks G.

    So would a higher residual and lower money factor make it a better deal? What else would need to be change to make this a good deal?

    Also, is it common to find better lease rates on a smaller luxury suv like this? Or is this about what you get with a luxury suv?

    Thanks.

    • @chris. yes. a higher residual and lower mf makes payments lower. The residual won’t change because it’s bank imposed. The MF can be “bought” down using multiple security deposits. I know Audi does it, but I have never tried with VW. Lower sale price will help too.

      I think if you look at the lease rates for Touaregs in the last 6 months, you probably won’t see very good numbers. This month is actually decent for a Touareg, but I still think its too pricey. I would probably recommend looking at other luxury SUV to see how they compare.

      I don’t normally see good lease rates for SUVs in general. Specially German ones. Occasionally, you will see an awesome deal on the ML350, but that hasn’t happened since last Fall/Winter. The MDX seems okay this month, not sure if that interests you.

  4. yes higher residuals and lower money factors make things better deals. you have to do the math on it, lower Cap cost helps a lot in reducing rent charge.

    FWIW i feel the ISM didnt do anything terrible at all. If demand is high then why not sell to someone else at higher prices? sure its nice to get a good inside deal, but im sure they have plenty of repeat customers and they cant hand out stellar deals to everyone. Seemed like his response was perfectly fair.

  5. thanks for your opinion on vw dealers. my jetta lease end in feb but will try to end in dec for year end deals. I got my jetta from mckenna huntington beach. I’d like to get another vw so the 350 fee disposition fee is cancelled out if getting another car. do you have any brokers in mind? what kind of car did you wife get? thanks!
    also def interested in a hyandai, who was your sales guy? thanks

    • @jonathan. last year, my wife picked up a jetta wolfsburg from mckenna norwalk. i dealt with an audi sales guy, so my experience was much better than last april, when mckenna vw relocated to cerritos. As for any broker, I only have been in contact with two (Best Buy and Number1). Best Buy seems good. They have had some staffing issues lately, which has resulted in slower than normal response times. But they are legit and competitive when it comes to pricing. Too bad they are East Coast only. Number1 has been kind of hit and miss. I know of people who have leased through them, but there have been a few complaints lately about they way they do business. I will probably need to try them out personally to see how the experience really is. However, that won’t be happening any time soon.

      As for my Hyundai, I went with Harbor Hyundai in Long Beach. They were the cheapest price I got quoted via email. I worked with Doug Van Dyck. Here’s his contact number:

      562.753.0115 Office
      562.310.6168 Mobile

      You can also email him at dvandyck(at)gs.reyrey.com

      Good guy to work with. Good service. Another surprising thing is that the dealership service prices is pretty reasonable. I paid $25 bucks for an oil change a week ago (tax included).

  6. Here’s my math for a 4dr Golf GTI

    MSRP: $28,265
    Sale Price: $25,265 (might be dreaming on this price)

    Using the above numbers at 36mths 15k miles, including tax: $361mthly.

    I have a feeling the rates will improve, even if only slightly, for this 4th of July weekend so if I can get that payment or less, I’ll have me a GTI very soon.

    Thoughts on the likelihood of getting this deal?

  7. @J I think the sale price might be tough to get since it’s below invoice. Doesn’t mean you shouldn’t try though, but I normally find that holiday weekends aren’t always the best times to cut a deal.

  8. I appreciate it. Your comment about holidays not being all they’re cracked up to be takes a little pressure off me.

    I figured with the 2012 model coming very soon, now would be prime time to get the best deal as they’ve sat on the lot nearly a year. Here’s hoping.

  9. Working 2 dealerships. One hasn’t gotten back to me yet, but the other came back (after their first initial terrible offering) with:

    $1565 due at signing
    $393mth.

    I told him to call me back if he finds another $30~ a month in there somewhere. Nice guy, honest. Just trying to make a dollar which I don’t mind.

  10. Same dealer called back with final offer:

    $710 due at signing. Includes 1st month payment.
    $389mthly.

    I’m thinking this might be as good as it’s going to get with the current rates yet, I’m tempted to wait till Tuesday, when the new rates come out.

    I’m up against a supply issue as there are fewer than 5 GTIs meeting my criteria, within driving distance. Decisions…Decisions…

  11. Took delivery tonight on a GTI with the package we were looking for.

    Final deal:

    $710 due at signing
    $379 mthly.

  12. G:

    When the sun comes up, I’ll take some glamor shots and send them your way. Thanks again for all the great information.

    • @J. Btw got your email. When I first read it, I was thinking you got a non-sunroof model since the MSRP is lower. But since you had too much wine, I figured there was some mistake there. Congrats on the ride though. I think you did well. By the way, Jeep numbers are out for 2011 models leasing through US Bank. They look decent, very close to last month’s numbers.

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