What am I missing here? (Lease Deal)

[rhody512]

Speedcraft VW in Wakefield Rhode Island is offering a $19/month lease on 2016 SE models.

$2000 down
$19 plus first months payment
$625 plus acq fee
$220 plus doc fee
=$2864 down

$19 x 23 months = $437

Total of $3301 for two years.

Only 7,500 miles per year, $2500 state of RI incentive must be paid up front before the state reimburses you. So what am I missing?

http://www.speedcraftvw.com/manager-specials-in-wakefield-ri


Thank you for any help you can give me.

 

[miimura]

Does Rhode Island have sales tax on EV (or any vehicle) purchase?

Even according to your math, you have to give the dealer at least $5,364 up front to get the $19/mo payment.

In California, you have to pay sales tax on the Fed Rebate, your down payment cash, and any manufacturer rebate, plus tax on the monthly payment. In this case, it would be ($7,500+$2,500+$2,000+$1,000)*8.75%= $1,137.50 plus $1.66/month. Of course, all that tax jacks up the whole calculation and would add about $47.40 to the payment, which adds another $4.15/month in tax to the monthly payment.

 

[johnnylingo]

In California, the state rebate can only be taken by the lessee on a 30 month or longer lease. There's also a finite pool of rebates available for each model.

Rhode Island only allocated $200,000 for this rebate, so that's less than 100 people. Better get on it quick before that's gone.

http://www.drive.ri.gov/

 

[forbin404]

I don't see Tax Title License which can run an additional $1900.

 

[RonDawg]

As that deal is for an SE with no options, you're missing out on the 7.2 kW on-board charger, Quick Charge port, more efficient heat pump heater (might be an issue in the Northeast if you have a lengthy commute), cruise control, and a few other features.

Personally, I'd go for the $0 down (actual down $2500 to be rebated by RI -- if you're lucky) deal. At $109/month it's hardly a budget breaker, and your overall cost is just $160 more. The reason is if the car is totalled, you're going to lose any down payment; VW Credit will simply terminate the lease, assuming payments were on-time and you didn't put too many miles on the car for the given time frame.

There's also no guarantee that you'll get your application in on time to be one of just 80 recipients of that rebate.

 

[SDegolf]

Broken down:

Term: 24 month , 7500 mi/yr : total 15k miles

23 monthly payments of : $19 + 7% tax = $20.33

Total Upfront Cost: $6090
Down Payment : $2000 down + $2500 down(this $2500 will come back as a rebate, but you pay upfront)
Acquisition Fee : $ 625
Documentation : $ 220
DMV Registrar : $ 200 estimated
Cap Cost Red. : $ 525
1st month pay : $ 20.33

Total out of pocket for the 2 year duration after rebate:
$6090 + $467 - $2500 rebate + $350 Disposition Fee = $4407

Although it's only $4407, it is for only 15k miles over a 2 year period.

The rebate is very limited. See this link:
http://www.plugincars.com/federal-and-local-incentives-plug-hybrids-and-electric-cars.html
There is only $200,000 available for Rhode Island's rebate. That comes out to 80 cars. I would definitely confirm the funds are available before purchasing.

 

[rhody512]

Thanks for the help everyone! As I suspected, I was missing quite a bit.

Still giving it a test drive this weekend, we'll see how it goes.