Financing / Leasing a MK5 GTI

[li21]

Hi all,

Has anyone here leased or financed their MK5 GTi either through a dealer or a work novated lease etc ?

If you dont mind, are you able to post details like:
Model and specs, dealer, Purchase price, repayments, inclusions (eg. insurance, fuel etc)

Would like to know how much better leasing or dealer finance work out to be VS car loan from a bank.

cheers

[DJC]

Dont think too many people are going to be posting those type of details as they are rather personal.

Its rather simple though, just start with looking at their interest rates(banks and financiers differ greatly). Then all the hidden costs - establishment, monthly fees, early termination fees.

Most try to gloss it up so it looks good until you drill down.

The best to deal with in the past have been BMW finance - No establishment fee, no monthly account fee and no early payout fee. All you have to do is negotiate interest rates. I did look at VW and there finance was very similar.

Good luck

[Creniac]

Try this calculator..... Calculate
Just fill in the boxes and all your questions will be answered in regard to leasing.....

[isaw]

Novated leases are very good as you pay the car off with 'tax free' money. In a nutshell you deduct your car from your taxable income, and costs usually include petrol servicing rego insurance as well. If your company offers it, its the best way to go if you do alot of driving, under 15km a year its questionable as you still pay a decent wack of tax on it.

[jessv3]

Novated leases are very good it.

It really depends on your situation and what type of other finances are available to you. I do above 15k per year but still found a novated lease less economical then a personal loan. If you have a mortgage why not access the interest rate your getting on that? It was easier then I thought, I just filled in a bit of paperwork and the bank opened a separate account for my car leveraging off that same rate (6ish %).

[STV4SYT]

The Cheapest way to buy a car is to pay for it.

I looked into leasing and residuals and all that jazz, still works out better in the long run to buy what you can afford to pay for.

Esp with VW's and their comparitively high resale values.

On the downside, it may take a few years to get into the car that you want to buy, but at least there are no nasty monthly repayments to deal with,and you can change when you want without penalty.

[JY086]

just brought a mk5 gti,

Cost $28000
repayment $663 /month 5years around 13.9%
using Fincar...anz
no up front
just need to shop around man.....

picking the car up this weekend....

anyone up for a cruise? first time owning a GTI......im going up to sydney this weekend to get the car....so yeh.

[STV4SYT]

just brought a mk5 gti,

Cost $28000
repayment $663 /month 5years around 13.9%
using Fincar...anz
no up front
just need to shop around man.....

picking the car up this weekend....

anyone up for a cruise? first time owning a GTI......im going up to sydney this weekend to get the car....so yeh.

Yoiu must really want the car, $12k in interest !!!!!

[team_v]

Could have got a mk6 gti for almost the same price.

[DJC]

Interest rate for me was about 9.3%

[VW Central]

Interest rate for me was about 9.3%

Mine was 0% because I paid cash, helps to live at home and have no dependants!

[isaw]

not all of us have that luxury... you know, living on our own two feet etc.

Dont know about you, but I'd rather pay off my car than having to save for 3 years to get what I want.. sure you pay some cash in interest but the more you smash in the first year the less you pay overall. I have a 5yr loan at 10%, a year into it I've paid half of it off without really trying, so I should end up saving about ~5k in interest.
RE Novated, it worked out better for me to have my car repayments coming from salary sac, rather than a full novated lease as it provided flexibility, only downside is I could be paying more off the car tax free, thus increasing my overall take home pay. if your not good with numbers go see an accountant.

To the new car buyer, pay it off fortnightly. 26 fortnights vs 12 months... you get a free 1/2 month, + your interest will be lower overall. your rate isn't that great, but I guess its a matter of who will loan you the money. Have fun with the new car!

[adzy]

The Cheapest way to buy a car is to pay for it.

I looked into leasing and residuals and all that jazz, still works out better in the long run to buy what you can afford to pay for.

Esp with VW's and their comparitively high resale values.

On the downside, it may take a few years to get into the car that you want to buy, but at least there are no nasty monthly repayments to deal with,and you can change when you want without penalty.

This is incorrect.
Depending on your current situation with how much tax you pay back, km's travelled etc - you can save thousands from a novated lease as I have done so and so have a number of my work collegues.
You cant just state one opinion for every individual as we all have different financial situations in life where in 'some' circumstances a novated lease is a great option. I wont go into detail but I have saved $5k per annum in the past.
However I do understand yor view also mate.

[dkgti]

Having had 2 novated leases and thoroughly doing the numbers, I can confidently say that there are benefits for and against leasing and it really only pays if you do more than 25,000klms per yer (and hence pay lower FBT).

A big plus for a novated lease is the fact that if you get to keep your cash (if you have enough) for use as a reducing balance on your home loan or can use it as working capital for your business. That is, it frees up cash .

Of course there is an offsetting increase in interest and other charges relating to the lease but its smoother over a period of time hence reducing lumpy cash flows which helps budgetting.

[STV4SYT]

Its not "incorrect"

It is correct for my situation, i can't guarantee a certain number of km a year. My GT had 26,000 on it after 2 years, the GTI has 2600 on it after a month as an example I'm working in outer suburbs for 5 months, but in august that could change if i move back in the city and end up doing less than 100km a week.

I also do a lot of contract work, so dont have a "regular" income like most people, so i need to have the security of knowing that if i have 2 or 3 months off (as i do most years) then im not worried about car repayments.

I am firmly of the belief though that one should not live beyond their means.

i also refuse to pay interest on a depreciating object.

As i run most of my work thru my own business i still get to claim deprectation, usage etc so i still get tax "beneift"

I have only ever paid cash for any vehicle i have owned for the above reasons and therefore my vehicle choices have been what i can afford not what i want. Gradually over the years i have been able to step up each time and can now afford to buy the cars that i want.

I still think that overall that the stragegy should work for most people.

Works for me as i get bored easily, and dont have to worry about being "locked in" to a 3 year, 4 year or 5 year "contract" and if i deceide to sell in the morning i dont have any penalties or residuals to worry about. My GT was for sale at 18 months old and i held on to it just over 2 years as i had a biit of a wait on the GTI.