You’ve probably seen the commercials on the new 2010 VW CC Lease. You can lease one for $279.00 a month. As it’s name suggests, the 2010 Volkswagen CC Sport is an attractive car which would appeal to anyone who appreciates the safety, fuel efficiency, fit, finish and German engineering of a Volkswagen. If you’re tired of the reliable, but predictably boring appeal of the popular Honda Accord or Toyota Camry, you might take a serious look at this sporty new offering from Volkswagen. Japanese cars lease so well because of their reliable, proven track record. On the other hand, there is really something different about the solid fit and finish of German cars and the way they drive. They just feel more substantial. The doors clunk when you shut them and the steering wheels, knobs, dials, pieces and parts of the interior just feel so good in your hands. So, when I saw the TV advertisements for a new VW CC Lease, I decided to see how their offer compares to the latest October Lease Specials.
If you got excited when you saw the low, $279.00 payment, your jaw probably dropped in dismay when you saw the $3,299-down payment requirement. This is why I always go back to the Average Monthly cost part of the formula. What does it really cost you to lease the car after you figure in that hefty $3,299 down-payment? The total cost of your lease payments over 36 months plus the down-payment (including 1st month payment) equals $13,064.00. That averages out to around $363.00 a month. That doesn’t sound quite as good as what we thought. The Lease Value Ratio is 1.31%. (Average Monthly Payment / MSRP) Not horrible, but no where close to to this month’s winner, the Toyota Camry, at 1.03%.
Okay, maybe it’s not the best lease deal out there, but if you really just gotta have that German-built car and love that sporty, manual 6-speed, 200HP engine, is $363 a month worth paying to drive it for just 3 years? Let’s compare what it would cost to purchase the car. Volkswagen also offers a 2.9% financing deal on a 36 month purchase. SO, assuming you put $3,299 down on a 3-year loan at 2.9%, your payment is $696.00 a month. Yikes, that sounds expensive, and that’s assuming the dealer gave you a $1,000 discount off of the MSRP price of $28,300. After 3-years, your total cost to own the vehicle is $28,391.00. Assuming the car’s value is 60% ($16,890) of what you paid for it, your net cost to own the car after 3 years is $11, 411. ($28,391.00 – $16,890). So, it costs you $1,653.00 less to buy the car rather than lease it. Keep in mind, though, you will either continue driving the car as it depreciates, or use the $16,890 as a trade-in towards something new. Unless you sell the car for that $16,890 and stop driving cars for three years, it will take you a long time to make up for that extra cash you paid to own the car.
This kind of math is what makes me appreciate the boring, old Camry at $199.00 a month and $1,299 down. Don’t forget to check the listings on the Volkswagen website for their latest offers on the all new, VW CC Lease.