First time auto lease -- I need guidance

[Paisa el Toro]

I've decided that I'm going to take Volkswagen up on their "Sign and then Drive" promotion. So, with that said, I'm interested in leasing a 2008 GTI Mk V. The deal that VW is promoting is $319/Month for 36 months with $0.00 due at signing, and they're basing this on an MSRP of $23,450.00. The lease is for 36,000 miles (12k per year).

Now, from what I understand with leases, the key is staying under the mileage, or else you pay an arm and a leg. While I'm getting my 1973 Volkswagen Super Beetle restored, which will take anywhere from 8 months to a year, I've been putting around in a 96 Toyota Tercel because the thing is great on gas. Since I work approximately 33 miles from where I live, the Tercel has given me great gas mileage, and I intend on continuing to utilize the Tercel to get to work. The GTI I'll be using for short distance drives until I move closer to work, and by then, I should have my Super Beetle back. The restored Super Beetle will be my weekend driver.

So, considering that I'll be staying below mileage, are there any tips that you guys could provide me regarding entering into a lease agreement? It's my first time, and I want to make sure that I don't get hosed by the Stealership.

Thanks!

[Guest]

With a lease, you have to insure the leasing company, usually higher than your current insurance.  For example, I have to ensure GMAC for $100,000/$300,000 when I would have been able to carry just $10,000/$20,000.

There are other issues, of course.  With a shorter-term lease, you will need to be more careful of scrapes, dings, dirt, etc.  They expect some wear and tear, but the definition of "excessive" becomes a little more tight the shorter the lease.

Mileage is a major issue. My lease is $0.15 per mile over the limit... so an extra 1,000 miles is an extra $150.  Read your terms carefully.

You also can't get out of the lease early, unless you pay the full term.  That means you have to pay the full $11,484 - or any pro-rated amount if you want to get out early.  Let's say after 30 months (2 1/2 years), you want or need to buy a new car... well, you will still owe the remaining 6 months ($1,194) on the VW lease.

Some things to consider.

[Velcro]

Leasing is a hose job... everyone I know that has leased has a horror story about it and they all say "whatever you do, do not lease... it just isn't worth it".

[72bull]

You should negotiate the lease just like you were buying the car.  You don't have to lease for MSRP.  It's good that you didn't have to put any money down.  I have leased 2 cars over the years and have been satisfied.  It costs more in the long run, but you get to drive a new car every few years (depending on your lease term) and you usually don't have to have a down payment. The lease company offered to sell me the cars at a good price and interest rate about a year before the leases expired. I took them up on the offer.

ps. You can negotiate for the mileage or any other terms of the contract.

[chazmeister]

Another thing to consider is the warranty.

Usually a 36 month lease will have a 36 month warranty, but make sure they cover it for the entire lease. My lease is 39 months but the warranty was only for 36, so I paid a little extra to extend it.

[bulldad10]

Just my 2 cents here...

Why do you need this car in the first place?  If you are going to drive your Toyota to work (since 66 miles each day would kill the lease mileage), and your restored Super beetle will be ready in around 8 months for the weekends, when would you plan on driving the 3rd car?

It seem to me that you are committing to a 36 month lease when you really might be using it for 8 months to a year.

I don't know your situation, but 3 cars for one person seems like at least one too many.

But if you do go for the lease, the other advice in this thread is good!

[Paisa el Toro]

Just my 2 cents here...

Why do you need this car in the first place?  If you are going to drive your Toyota to work (since 66 miles each day would kill the lease mileage), and your restored Super beetle will be ready in around 8 months for the weekends, when would you plan on driving the 3rd car?

It seem to me that you are committing to a 36 month lease when you really might be using it for 8 months to a year.

I don't know your situation, but 3 cars for one person seems like at least one too many.

But if you do go for the lease, the other advice in this thread is good!

I don't plan on keeping all three cars.  I purchased the Tercel while the Super Beetle is in restoration. I needed something good on gas, since I am working far from where I live. Once I get the super beetle back, I plan on selling the Tercel, and using the super beetle as my weekend driver. I'm going to get classic auto insurance on it, so that'll limit the amount of miles I can place on the super beetle. The reason why I wanted to get the GTI is because they're offering the special offer I mentioned until March 31, 2008. I figured I can get the GTI now, without having to put anything down, and have it for three years. In the meantime, I'll be moving closer to work and will be using the GTI as my daily driver and be rid of the Tercel, and I hope to have the Super Beetle back.

Cars depreciate in value, so I don't mind jumping into a lease. The only auto that I own that's actually worth the investment is the Super Beetle. Since it's a classic it will only appreciate in value. Leasing will keep me in a relatively new vehicle every few years, and I can take clients around without having to worry too much about the lack of space in the back, like I would if I used the Tercel or Super Beetle as a daily.

[mikebeau]

Buy a car 2-4 years old.

Go to your bank or another reputable one before hand, and get preapproved.  Some will even give you a check you can take to a dealer or private seller.

Find a reputable private seller and use carfax.  Carfax isnt full proof, but it is worth it.

My wife needed a ride.  Lexus wanted 30k for a certified '04 RX330.  We got one for 23k from a doctor's wife.  It wasn't easy finding the deal(mostly because RX330's are very popular, and most end up back at Lexus because their customers are loyal), but it was better than buying new for 45k or pre-owned at a dealer for 27-30k. 

Also,  car loan defaults are skyrocketing.  I'm sure there are plenty private owners who need to unload their car.

[Velcro]

excellent advice mb!

[Paisa el Toro]

If I can find a used 2007 or even 08 GTI and have the same monthly payments as this lease, I may just do that. I've been researching auto prices online. Other than Autotrader.com, craigslist.com, and cars.com. Are there any other good websites to refer to?