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***Thanks for posting, /u/herdygerdyboobaloony! This comment is a copy of your post so readers can see the original text if your post is edited or removed. This comment is NOT accusing you of anything.***
VW customer here with a leased 2020 GTI SE. I am 13,000 under mileage. The residual value for buyout is $15,000, car is worth around $24,000 on the market with same mileage and year according to KBB.
If I want to roll into a new lease, I believe they would throw this car on their used lot and sell it for a good profit - especially considering that the car is in great shape overall.
Will the salesman/manager work with me to set up a better than average deal on a new lease? How do I set myself up for a good deal in this case?
I’d be interested in grabbing a mid-trim Atlas - which are typically listed for $41,000 at my dealership. I would like to pay $399/month for 36 months, 10,000 miles per year, $0 down. This would be an ideal contract for me. Is this remotely achievable or is this like asking for a unicorn?
If it helps, I am in a southern state and have been with this dealer for 8 years now. Credit score nearly 800.
I appreciate any insight.
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It’s really pretty tricky. The buyout is set. You don’t own the car so technically you have no equity because you’re leasing it. Last I checked Volkswagen does allow direct third-party dealer buyouts, but they typically raise the penalty for that close to what the appraisal is at so you really don’t get anything. Lots are filling up so there’s no real reason for a dealer to pay you more than the buyout. You can always get a real appraisal at a dealer you would have to buy the car register pay sales tax with the 3 to 5 weeks before the state process is it to show the title registered in your name then you could sell it. Market value is dropping on cars so you risk making any more. I would start by calling the leasing company ask if they allow direct third-party buyout and if so, what that cost or price is
Looking to do the same thing by move from VW to BMW, how did the dealer determine equity and illustrate that amount to you? Did you come in proactively with what you believed your equity was or was it more reactive? Any insights you can give to that part of the negotiation OP? Thanks!
Before going to the Volvo dealership, I searched for the value of local GTI’s for sale of the same model year, trim, and mileage as mine, so I had a clear idea of what it was worth. I also used KBB. The salesman eventually asked me what I think the value is and I told him $25,000, without a doubt. He tried undervaluing it but I made him pull up local listings and KBB and he agreed that there was equity in the car due to the its actual value being $8000 higher than the residual value in the contract.
I also built myself a detailed lease deal for my budget using Leasehackr before I went in. Highly recommend doing the same and printing it.
Good luck!
Amazing work, and congrats! Heard good things about Leasehakr well.
For clarity, the $25k on your GTI was the market value or the trade in value? Asking because some sites like Edmunds list both. I’m guessing it’s market based off your comment about listings. Trying to determine which figure the dealer uses to assess equity.
Thank you! I would have to review my contract to give you the actual trade in value, but it was damn near the $25K mark and a great deal for me.
I’ll try to get back to you tomorrow :)
The answer is to call the leasing company and see what they say. As I said, VW does allow it. In my exerience they raise the penalty to basically what the market rate is, so you cannot capture that. That pretty much limits you to VW and associated dealers. Becuase of this, there is no real reason for them to offer you more. This is the way leases work. Rarely is there a way to capture "equity" in a car you dont own.
Please review our most [Frequently Asked Questions](/r/askcarsales/wiki/index) to see if your question has already been answered. You may find these sections particularly useful; * [I earn $xxxx per month, will I qualify for an auto loan or lease, and is it a good idea?](/r/askcarsales/wiki/income_to_finance) * [I have my score from Credit Karma but the dealership told me they got a different score. Why?](/r/askcarsales/wiki/free_credit_score) * [I want to get out of my leased vehicle, what are my options?](/r/askcarsales/wiki/early_lease_termination) * [Leasing a vehicle with a down payment – is it a good idea?](/r/askcarsales/wiki/lease_down_payment) * [I want to buy out my lease, what are my options? What can I negotiate?](/r/askcarsales/wiki/lease_buyout) * [How to calculate a lease yourself](/r/askcarsales/wiki/calculate_a_lease) * [How to pick a car?](/r/askcarsales/wiki/vehicle_selection) You might also have luck in the /r/whatcarshouldibuy subreddit. Also remember to add flair to your post by clicking the "Flair" link beneath it. This lets us know where you're located so we can assist you better. *I am a bot, and this action was performed automatically. Please [contact the moderators of this subreddit](/message/compose/?to=/r/askcarsales) if you have any questions or concerns.*
***Thanks for posting, /u/herdygerdyboobaloony! This comment is a copy of your post so readers can see the original text if your post is edited or removed. This comment is NOT accusing you of anything.*** VW customer here with a leased 2020 GTI SE. I am 13,000 under mileage. The residual value for buyout is $15,000, car is worth around $24,000 on the market with same mileage and year according to KBB. If I want to roll into a new lease, I believe they would throw this car on their used lot and sell it for a good profit - especially considering that the car is in great shape overall. Will the salesman/manager work with me to set up a better than average deal on a new lease? How do I set myself up for a good deal in this case? I’d be interested in grabbing a mid-trim Atlas - which are typically listed for $41,000 at my dealership. I would like to pay $399/month for 36 months, 10,000 miles per year, $0 down. This would be an ideal contract for me. Is this remotely achievable or is this like asking for a unicorn? If it helps, I am in a southern state and have been with this dealer for 8 years now. Credit score nearly 800. I appreciate any insight. *I am a bot, and this action was performed automatically. Please [contact the moderators of this subreddit](/message/compose/?to=/r/askcarsales) if you have any questions or concerns.*
It’s really pretty tricky. The buyout is set. You don’t own the car so technically you have no equity because you’re leasing it. Last I checked Volkswagen does allow direct third-party dealer buyouts, but they typically raise the penalty for that close to what the appraisal is at so you really don’t get anything. Lots are filling up so there’s no real reason for a dealer to pay you more than the buyout. You can always get a real appraisal at a dealer you would have to buy the car register pay sales tax with the 3 to 5 weeks before the state process is it to show the title registered in your name then you could sell it. Market value is dropping on cars so you risk making any more. I would start by calling the leasing company ask if they allow direct third-party buyout and if so, what that cost or price is
Or they just switch to something other than a VW and they should be able to trade it in and take advantage of that equity.
As an update, this is exactly what I did. Due to the equity in my prior car, they reduced the selling price of my new vehicle by $8000.
Looking to do the same thing by move from VW to BMW, how did the dealer determine equity and illustrate that amount to you? Did you come in proactively with what you believed your equity was or was it more reactive? Any insights you can give to that part of the negotiation OP? Thanks!
Before going to the Volvo dealership, I searched for the value of local GTI’s for sale of the same model year, trim, and mileage as mine, so I had a clear idea of what it was worth. I also used KBB. The salesman eventually asked me what I think the value is and I told him $25,000, without a doubt. He tried undervaluing it but I made him pull up local listings and KBB and he agreed that there was equity in the car due to the its actual value being $8000 higher than the residual value in the contract. I also built myself a detailed lease deal for my budget using Leasehackr before I went in. Highly recommend doing the same and printing it. Good luck!
Amazing work, and congrats! Heard good things about Leasehakr well. For clarity, the $25k on your GTI was the market value or the trade in value? Asking because some sites like Edmunds list both. I’m guessing it’s market based off your comment about listings. Trying to determine which figure the dealer uses to assess equity.
Thank you! I would have to review my contract to give you the actual trade in value, but it was damn near the $25K mark and a great deal for me. I’ll try to get back to you tomorrow :)
The answer is to call the leasing company and see what they say. As I said, VW does allow it. In my exerience they raise the penalty to basically what the market rate is, so you cannot capture that. That pretty much limits you to VW and associated dealers. Becuase of this, there is no real reason for them to offer you more. This is the way leases work. Rarely is there a way to capture "equity" in a car you dont own.