end of lease "trade in"

It doesn't seem like buying off your remaining 2 months is a big deal. Why are you so opposed to it?

Also, just a tip, Jettas are quite unreliable. That goes for VW in general. You're better off considering another Volvo. Have you seen the C30?

OK...well I've done this a lot, so I hope I can help:

First, you should be able to get a new car within 60-90 days of the end of your lease. Most are written that way. There are further incentives for staying with the same manufacturer (they will often waive up to $1000 of damage or extra miles, for example). So you should be ready to go now, though since you want another make/model, you'll might pay a disposition fee if you didn't at signing. I would not buy the last two payments in advance and turn the car in. If they want you to do that, just wait two months.

Now, let's talk about leasing. Leasing can be good, but one must understand it. Leasing is great if you can stay under the mileage limit and don't mind always having car payments. You get a new car every few years that way, and usually will pay less than with a loan. However, it's been my experience that most people don't understand leasing.

A couple points:

1. Longer leases (more than 36 months) are usually not good because you're driving the car out of warranty and paying the same price you were in month #1.

2. Do not put money down other than the inception fees. Putting money down on a lease is a total waste.

3. There are cars to buy and cars to lease. It depends on depreciation. From what I found, $500 a month is too high for the Jetta. See below.

4. The sticker price of the car DOES matter. Also see below.

You may know all of this already, and if so feel free to ignore....however...as I said, most people just don't get leasing. Really it's simple: You're paying the depreciation on the car over the lease term plus an interest rate. Here's why I think $500 is high. Take a look at your vehicle at Edmunds.com:

http://www.edmunds.com/new/2008/volk....html?action=2

I came up with this when I selected some options:

Invoice=$23,669
MSRP=$25,344
Market=$24,337 (I wouldn't really put much stock in this last one).

Now, let's look a lease. I have a spreadsheet I downloaded which I can give you if you'd like.

Sale price=$23,500
Term=36 months/12,000 miles per year
Cap Cost Reduction (down payment)=0
Due at signing: $1,464.77 (first month, security, disposition, etc)
Residual Value: $15,000 (62.5%)
Money Factor (interest rate): .0032 (7.68% APR)

Total Payment $408.53

Mind you, that's without even trying. You could beat them up on the sale price even more (the invoice is bullshit, no matter what they tell you...they have holdback on the car and other factory to dealer incentives). You should also try a lower interest rate, which is expressed as a money factor (just for the purpose of confusing us peon consumers). Do not accept a money factor over .0032.

One last tip...shop their lease around. Ask for the quote sheet from all the banks they deal with. All they are really doing is selling the car to a bank (maybe their own). Then, that bank is leasing you the car. Some will have different residual predictions or interest rates, which will affect you A LOT.

Good luck...hope that helps.

________

EDIT: I just realized you may be looking at buying. If that's the case, I'd make your last two payments...then this summer you can go get a new car. The deals should still be good then. If you're buying, I would start BELOW invoice (not MSRP!) and negotiate up. Get the exact invoice price on the car you want (the exact car with options). Then offer them something unreasonable, like $2,500 BELOW invoice. They'll laugh, but that's OK. Come up $500, then another $500 immediately. Hang around at that price for a while and the grudgingly come up another $500. If they hesitate, tell them you just came up $1,500! If they balk again, come up another $250. Then I'd hold them firm and tell them if they can do it, you'll sign the deal right now. If not, walk out and come back later. Chances are they will sell you the car UNDER invoice. Just watch.

Gonna nix that one.

Volvos require frequent, expensive fixes.

It depends which model and year. Since the Ford acquisition, many share parts/platforms with Ford and Mazda. The 30/40/50 models are all in that category. IIRC, they all share the same platform as the Ford Focus and Mazda3, and that's a great platform. Of course, if you can see past the name plate, you should be getting the Mazda3 anyway, since it offers the best combination of price, resale, and service. Plus, you can get it with the best engine and gearbox.

That said, women tend to buy cars entirely on how they think they'll look while driving the car, so a sensible analysis on financial and performance aspects is unlikely to be of consequence in this case.

Yup.

The new Jetta is, in my eyes, is a piss-poor attempt at updating the styling. As with you, I'd suggest the Mazda3.

I've heard mixed things about VWs. Doesn't sound like it's your choice anyway!


Not usually how it works. The car will go back to whomever you leased it from (the finance company). The only other way is to have the other dealer buy the car...which most have no interest in doing if it's not their make of vehicle. My advice is check your documents to see what your buyout price is. If it's less than the car is actually worth, you might get the dealer to buy you out (or you can buy it and then trade it later...making some cash). If it's worth less than your price (which is fixed from the beginning), drive the car for two more months and then walk away. The second scenario is FAR more likely. The car is almost never worth what they estimate. Let them take the loss on it...they're insured for exactly that kind of thing.


Sometimes they can thin out in the summer a bit. You should be able to find one though. They can always do a dealer trade for the car.


Hmm...married life.


I don't know about that. You need to get the price with options, color, etc. Get the exact price for the exact car you want. Then negotiate.


Hope we can help. Just educate yourself about the terms of your lease and how leases work. Just keep in mind it's nothing more than a bank buying the car and renting it back to you with certain terms. It's not magic, though many people really have no idea how it works.


I've been in one...it is SMALL. My feeling is that the Altima, Camry and Accord (4 cyl models) are all better vehicles than the Jetta or Mazda 3, but it's not my call. Oh..BTW..my girlfriend has a 07 Ford Fusion. Really nice car, actually...and it's red. It's about the same price range and probably more reliable than a Jetta.

It depends what you want. These are very different cars, especially given that the primary layout of the Mazda3 is 5-door hatchback (really, the best layout for a compact). The Accord, Altima, Camry are all mid-size 4-door, and my opinions of these three are consistent with Jeremy Clarkson's... I'l leave you with that.