Should I lease an '07 GTI? Jetta? Something else?

[Scouzer]

Me: 20 year old male; $50-55k/yr CAD; No friends means no passengers

Currently I drive a 2006 Pontiac Pursuit GT. I'm really starting to dislike it--the build quality is very poor and I'm very picky. It's probably been in the dealership 10 times since I got it (exactly one year ago) for non-routine maintinence. It's a headache, and I'd rather dump it.

This is not even my biggest concern, however. My main gripe is that it sucks on the highway. The steering is heavy requiring constant attention and fatigue to maintain a straight line. All touch surfaces are not padded, so both my elbows have permanent bruises. Highway driving is critical for whatever I choose, as I do 90% highway driving. The only real plus to current my car is it does 36mpg highway.

I drive quite a bit, about 17k mile/yr.. most leases are 24-25,000 KM a year here in Canada, but I'm not sure about VW. I did 28,000 last year, I can probably cut down enough to slim under that 25,000 limit. If it's 20,000, it's a no go. If anyone knows, please let me know.

My current payments are financed $435/mo CAD for 48 months @ 0% after my initial $2000 down. Therefore, I owe about $15660 on the car. In researching the used market, it looks like I could get no less than $18,000 for the car, so it seems worthwhile in that regard.

I haven't been quoted yet, but the GTI has no incentives in Canada AFAIK and the lease rate is 6.9%. I'm guessing the payment would be about $550/mo for a 36 month lease... I can't pay more than that.

The Jetta GLI seems to be a similar vehicle but in sedan form. The big difference is the lease rate is only 1.9% and they are likely much more available and willing to negotiate.

I have not test driven yet (Can't for a couple weeks, no VW dealer where I live) so it's all speculation at this point.

Thoughts?

An Acura TSX 36 month lease is $692/mo.... not in the running, before it's suggested...

 

[iamwiz82]

Didn't everyone tell you not to get that car?

I dunno where you think you will get $18k CAD for it. With the low value of the dollar, I'd imagine more Canadians will come down here to get a car.

$550 for a lease is insane for a econobox. IMHO, a lease is only good if it's significantly lower than the loan price. This isn't that place. Hell, $500/mo can get me a MB or BMW.

Sorry for the negative post.

 

[Scouzer]

Originally posted by: iamwiz82
Didn't everyone tell you not to get that car?

I dunno where you think you will get $18k CAD for it. With the low value of the dollar, I'd imagine more Canadians will come down here to get a car.

$550 for a lease is insane for a econobox. IMHO, a lease is only good if it's significantly lower than the loan price. This isn't that place. Hell, $500/mo can get me a MB or BMW.

Sorry for the negative post.

No problem, I appreciate honest opinions that aren't retarded fanboy flaming

Actually, I don't regret it. At that point in my life I made less, my life was less certain and I needed a smaller payment. A Mazda 3, for example, would have been $575/mo.

Yes, imports from the US are surging for cars. However, it doesn't mean there's no more market here! I've seen several on the local Autotrader, all above $19,000 private party. I've yet to see what the gouging dealers want!

I realize the lease is a financially less sound decision here, but I simply cannot afford to finance one of these cars. I'm playing with the thought process I'm young, I'm stupid, I can piss away some money on a nice car now while I can. Someday there will be a house, wife, kids, and I won't be able to waste money anymore. I must while I can!!! lol.

You think the GTI or Jetta GLIs are econoboxes? You must be high class

 

[vi edit]

The GTI and GLI are virtually identical from a performance standpoint. Only difference is 4 doors and a trunk for the Jetta, 2(or 4) doors and a hatch for the GTI. Otherwise they are really the same exact vehicle under the sheetmetal.

I'm probably one of the bigger lease advocates on this board, but I'm telling you that it's a horrible deal. You can probably get into an Audi A4 for less than that. Same engine at the GTI/GLI but you get Quattro and a slicker interior.

 

[Scouzer]

Originally posted by: vi_edit
The GTI and GLI are virtually identical from a performance standpoint. Only difference is 4 doors and a trunk for the Jetta, 2(or 4) doors and a hatch for the GTI. Otherwise they are really the same exact vehicle under the sheetmetal.

I'm probably one of the bigger lease advocates on this board, but I'm telling you that it's a horrible deal. You can probably get into an Audi A4 for less than that. Same engine at the GTI/GLI but you get Quattro and a slicker interior.

MSRP on an A4 is $36,000. Are you sure about that? That'd be in line with about $675/mo with Audi's high interest rates.

 

[iamwiz82]

Originally posted by: Scouzer

Originally posted by: iamwiz82
Didn't everyone tell you not to get that car?

I dunno where you think you will get $18k CAD for it. With the low value of the dollar, I'd imagine more Canadians will come down here to get a car.

$550 for a lease is insane for a econobox. IMHO, a lease is only good if it's significantly lower than the loan price. This isn't that place. Hell, $500/mo can get me a MB or BMW.

Sorry for the negative post.

No problem, I appreciate honest opinions that aren't retarded fanboy flaming

Actually, I don't regret it. At that point in my life I made less, my life was less certain and I needed a smaller payment. A Mazda 3, for example, would have been $575/mo.

Yes, imports from the US are surging for cars. However, it doesn't mean there's no more market here! I've seen several on the local Autotrader, all above $19,000 private party. I've yet to see what the gouging dealers want!

I realize the lease is a financially less sound decision here, but I simply cannot afford to finance one of these cars. I'm playing with the thought process I'm young, I'm stupid, I can piss away some money on a nice car now while I can. Someday there will be a house, wife, kids, and I won't be able to waste money anymore. I must while I can!!! lol.

You think the GTI or Jetta GLIs are econoboxes? You must be high class

I like leases as well. My current one is a lease, except it had a $32,000 sticker and I pay $200/mi with nothing down . I'm just saying that the numbers you posted are terrible.

And a Jetta or GTI are econoboxes. They don't even really offer great performance, and they are based on A to B cars. For $500/mo, I could find a lot of cars. That's almost a $30,000 loan. You can find a lot of lightly used cars for that. Even a Lotus Elise, if you were good

 

[vi edit]

Originally posted by: Scouzer

Originally posted by: vi_edit
The GTI and GLI are virtually identical from a performance standpoint. Only difference is 4 doors and a trunk for the Jetta, 2(or 4) doors and a hatch for the GTI. Otherwise they are really the same exact vehicle under the sheetmetal.

I'm probably one of the bigger lease advocates on this board, but I'm telling you that it's a horrible deal. You can probably get into an Audi A4 for less than that. Same engine at the GTI/GLI but you get Quattro and a slicker interior.

MSRP on an A4 is $36,000. Are you sure about that? That'd be in line with about $675/mo with Audi's high interest rates.

It doesn't look like Audi is offering any lease specials right now, but they regularly have A4 leases for around $350 USD a month. Typically around 36 months @ 12,000 miles per year.

That works out to around ~$370 CAD and 19k kilometers.

I think leases are WAY different up in Kanukistan.

 

[iamwiz82]

Originally posted by: Scouzer

Originally posted by: vi_edit
The GTI and GLI are virtually identical from a performance standpoint. Only difference is 4 doors and a trunk for the Jetta, 2(or 4) doors and a hatch for the GTI. Otherwise they are really the same exact vehicle under the sheetmetal.

I'm probably one of the bigger lease advocates on this board, but I'm telling you that it's a horrible deal. You can probably get into an Audi A4 for less than that. Same engine at the GTI/GLI but you get Quattro and a slicker interior.

MSRP on an A4 is $36,000. Are you sure about that? That'd be in line with about $675/mo with Audi's high interest rates.

Lease assistance is offered on a lot of vehicles.

An A4 in Detroit right now has this deal:

$359 lease per month for 36 months
Now through September 4, 2007

Down payment: $2,689

 

[Scouzer]

Originally posted by: iamwiz82

Originally posted by: Scouzer

Originally posted by: iamwiz82
Didn't everyone tell you not to get that car?

I dunno where you think you will get $18k CAD for it. With the low value of the dollar, I'd imagine more Canadians will come down here to get a car.

$550 for a lease is insane for a econobox. IMHO, a lease is only good if it's significantly lower than the loan price. This isn't that place. Hell, $500/mo can get me a MB or BMW.

Sorry for the negative post.

No problem, I appreciate honest opinions that aren't retarded fanboy flaming

Actually, I don't regret it. At that point in my life I made less, my life was less certain and I needed a smaller payment. A Mazda 3, for example, would have been $575/mo.

Yes, imports from the US are surging for cars. However, it doesn't mean there's no more market here! I've seen several on the local Autotrader, all above $19,000 private party. I've yet to see what the gouging dealers want!

I realize the lease is a financially less sound decision here, but I simply cannot afford to finance one of these cars. I'm playing with the thought process I'm young, I'm stupid, I can piss away some money on a nice car now while I can. Someday there will be a house, wife, kids, and I won't be able to waste money anymore. I must while I can!!! lol.

You think the GTI or Jetta GLIs are econoboxes? You must be high class

I like leases as well. My current one is a lease, except it had a $32,000 sticker and I pay $200/mi with nothing down . I'm just saying that the numbers you posted are terrible.

And a Jetta or GTI are econoboxes. They don't even really offer great performance, and they are based on A to B cars. For $500/mo, I could find a lot of cars. That's almost a $30,000 loan. You can find a lot of lightly used cars for that. Even a Lotus Elise, if you were good

I know you Americans have crazy good leases. I am beyond comprehension how it's possible--VW of Canada does not have a lease calculator so I've been hammering out numbers on my own. Based on a 55% residual after 3 years @ 6.9%, it comes out like $580 or some such for the GTI.

I emailed a stealership today, maybe they 'magically' have better lease rates than I'm guessing, but I doubt it. $680 for a TSX which isn't that much more does not have me hopeful.

I'd lease a $30k car tomorrow for $200/mo. What kind of car is it?

Also note many American leases are less KM than Canadian leases. Most companies are 24-25,000km leases...which is what I'd need. I could not manage with a 19,000km lease.

Down payment on a lease...eh. That's a bad idea, is it not?

I don't know how you guys get those awesome leases...

 

[iamwiz82]

Originally posted by: Scouzer

Originally posted by: iamwiz82

Originally posted by: Scouzer

Originally posted by: iamwiz82
Didn't everyone tell you not to get that car?

I dunno where you think you will get $18k CAD for it. With the low value of the dollar, I'd imagine more Canadians will come down here to get a car.

$550 for a lease is insane for a econobox. IMHO, a lease is only good if it's significantly lower than the loan price. This isn't that place. Hell, $500/mo can get me a MB or BMW.

Sorry for the negative post.

No problem, I appreciate honest opinions that aren't retarded fanboy flaming

Actually, I don't regret it. At that point in my life I made less, my life was less certain and I needed a smaller payment. A Mazda 3, for example, would have been $575/mo.

Yes, imports from the US are surging for cars. However, it doesn't mean there's no more market here! I've seen several on the local Autotrader, all above $19,000 private party. I've yet to see what the gouging dealers want!

I realize the lease is a financially less sound decision here, but I simply cannot afford to finance one of these cars. I'm playing with the thought process I'm young, I'm stupid, I can piss away some money on a nice car now while I can. Someday there will be a house, wife, kids, and I won't be able to waste money anymore. I must while I can!!! lol.

You think the GTI or Jetta GLIs are econoboxes? You must be high class

I like leases as well. My current one is a lease, except it had a $32,000 sticker and I pay $200/mi with nothing down . I'm just saying that the numbers you posted are terrible.

And a Jetta or GTI are econoboxes. They don't even really offer great performance, and they are based on A to B cars. For $500/mo, I could find a lot of cars. That's almost a $30,000 loan. You can find a lot of lightly used cars for that. Even a Lotus Elise, if you were good

I know you Americans have crazy good leases. I am beyond comprehension how it's possible--VW of Canada does not have a lease calculator so I've been hammering out numbers on my own. Based on a 55% residual after 3 years @ 6.9%, it comes out like $580 or some such for the GTI.

I emailed a stealership today, maybe they 'magically' have better lease rates than I'm guessing, but I doubt it. $680 for a TSX which isn't that much more does not have me hopeful.

I'd lease a $30k car tomorrow for $200/mo. What kind of car is it?

It's a truck, but at least it's fast! Hemi in light, for a truck, truck.

 

[Scouzer]

Another example:

Fully loaded Mazda 3 (Canadian one does not come with a Bose system, NAVI, or some of the other American stuff...)

$461/mo 36 month lease @1.9%

I don't know how you guys get it so much better.

 

[vi edit]

Originally posted by: Scouzer
Another example:

Fully loaded Mazda 3 (Canadian one does not come with a Bose system, NAVI, or some of the other American stuff...)

$461/mo 36 month lease @1.9%

I don't know how you guys get it so much better.

There's a cost for free health care.



I KID! I KID!

 

[Scouzer]

Originally posted by: vi_edit

Originally posted by: Scouzer
Another example:

Fully loaded Mazda 3 (Canadian one does not come with a Bose system, NAVI, or some of the other American stuff...)

$461/mo 36 month lease @1.9%

I don't know how you guys get it so much better.

There's a cost for free health care.



I KID! I KID!

Oh god, get out

 

[Scouzer]

Harsh:

GTI 2 door manual with 18' alloy wheels:

- 36m lease, 6.9%, 638/m, residual 17,200

- 48m lease, 6.9%, 552/m, residual 15,300



GLI Jetta manual with sunroof & 18' alloy wheels:

- 36m lease, 2.9%, 680/m, residual 17,000

- 48m lease, 2.9%, 579/m, residual 14,500

LOL, there goes my dreams. Period.

 

[Stunt]

Another thing you should consider, especaially ocnsidering your age is insurance.
VW's especially with trim packages are deadly for insurance costs.

First car I bought was after university (22yrs old) was a used honda civic coupe (2002 model in 2005). The price was reasonable and so was the insurance; financed the car at 3.9% and paid it off in less than a year. I will try to hang on to it as long as I can, it's cheap to run and fun to drive (stick) and it's not an ugly car.

I'm 24, $63k

 

[Stunt]

I just noticed that edmunds has a total cost of ownership feature:
I used Detroit as the zipcode. (just for a relative cost difference)...cost is 5 year total.

2007 VW Gti = $48,720
2007 Audi A4 = $58,888
2007 VW Jetta gli = $50,374

2007 Honda Civic = $37,324
2004 Honda Civic = $34,920

Plus a used civic can be bought right out for $13,000 Canadian or less saving the interest that inflates the cost quite a bit.
Just starting out, you are better to outright buy a car or finance to own and always buy something cheaper than what someone might own in your income bracket. It's a good way to save a ton of money.

Sure I own a civic, but I also bank $1700+ a month.

 

[Scouzer]

My Canadian province, Saskatchewan, has government car insurance which is VASTLY cheaper than any private entity.

My premium would be about $1300/yr. No it's not subsidized by my taxes.

 

[Gillbot]

I will NEVER lease another car ever again. That was a horrible experience to say the least.

 

[ViviTheMage]

grab that 2.0T GLI

I drove one and they are sliiiiiick!

imo I would never lease a car though, buy it outright!

 

[Scouzer]

Originally posted by: Gillbot
I will NEVER lease another car ever again. That was a horrible experience to say the least.

Why do you say that? Please elaborate.

 

[theslickvik]

stick with your car. Sorry to hear you leased a car. Biggest mistake you will ever make