Topic: CarCostCanada BUY NOW option

[Dante]

I started to put things together for my new car purchase (lease) and I got the CarCostCanada (CCC) report for the exact configuration I'm set on (2016 GTI 5dr/Autobahn/DSG/Night Blue Metallic).

When I looked at the report I noticed a new (to me) BUY NOW price which is very attractive (about $1000 below invoice) so I'm wondering if anyone used this option in the past.

How it's supposed to work is you pay $99+tax upfront and within 2 business days CCC will find you a dealer that will sell you the car at the BUY NOW price. If not, they will refund the fee. They also state that, in case the dealership has an admin fee (they mention that it's often waived) it does not exceed $400. Even with all the fees, the price would come under the invoice price.

Any thoughts or prior experience with this?

[tpl]

How is the small print?   If it works and I'd wonder if it would work for a popular but small production car...like a Corvette or a Golf R for example.

[Allen]

I saw that too, interesting ... noted that it's not on all brands, had it for Lexus but not Audi

[Dante]

How is the small print?   If it works and I'd wonder if it would work for a popular but small production car...like a Corvette or a Golf R for example.

No small print. Pretty much is all in large fonts:

If you are ready to BUY NOW, click on the Continue button to secure the deal – CARCOSTCANADA charges a $99 (plus applicable taxes) Price Procurement Fee

Buy Now Conditions and How it Works

CarCostCanada BUY NOW Team will locate a new car dealership that will sell the vehicle at the BUY NOW price found on your Dealer Invoice Price Report within two (2) business days

The dealership will reside no farther away than 100KM from the CCC member in the majority of cases

CarCostCanada BUY NOW team will provide CCC member with the name and contact information of the secured selling dealership found on a signed Dealer Acknowledgement that will also confirm the BUY NOW price

The selling dealership will make contact with CCC Member in order to complete the sales transaction

The selling dealership, wherever possible, will extend discounts on accessories, extended warranties, administration charges and other items (administration charges are often waived but will not exceed $399)

The Buy NOW process begins with payment of the $99 Price Procurement Fee
In the event the BUY NOW Team is unable to secure the Buy Now Price within the guidelines described herein, the CCC Member will be refunded their Price Procurement Fee

I pulled the report for the R as well as I was contemplating going for it before settling on the GTI. It's applicable for the R too, but the under-invoice amount is lower.

Invoice: $41,558
Buy Now: $40,745


One catch I see is that there is no guaranty, but at least they will refund the fee if they cannot secure the deal within 2 business days, which I think is fair.

This is why I was asking if anyone has exercised this option recently and if it really worked.

[Dante]

Question #2

One other thing I'm trying to make sense of is if the residual value (buy back) decreases from month to month as the year progresses.

A VW salesman was telling me that the residual value in February will be higher than the residual value of the car in May hence my monthly will be higher if I buy in May vs. February, all the rest being the same (!?).

Is this true and why (assume the car is still 2016 MY in Feb and May)?

[tortoise]

Their invoice pricing is suspicious.  Unless you had added options.

Starting at 39,995

http://vwmodels.ca/golf-r/?&gclid=CLquq7zt8MoCFZM6gQodhQkPuw#carousel

[tortoise]

A VW salesman was telling me that the residual value in February will be higher than the residual value of the car in May hence my monthly will be higher if I buy in May vs. February, all the rest being the same (!?).

That seems strange.  How much of a difference are we talking?

[Dante]

A VW salesman was telling me that the residual value in February will be higher than the residual value of the car in May hence my monthly will be higher if I buy in May vs. February, all the rest being the same (!?).

That seems strange.  How much of a difference are we talking?

He could not tell an amount but he was throwing in $10-$12/month which over 48 months would amount for a good few hundred bucks.

[Dante]

Their invoice pricing is suspicious.  Unless you had added options.

Starting at 39,995

http://vwmodels.ca/golf-r/?&gclid=CLquq7zt8MoCFZM6gQodhQkPuw#carousel

Indeed.

DSG with Technology ($2,015) and includes freight and A/C tax.

MSRP: $45,115.

[tortoise]

Interesting. Wonder what the dealers think of this see what sticks strategy.

[OliverD]

A VW salesman was telling me that the residual value in February will be higher than the residual value of the car in May hence my monthly will be higher if I buy in May vs. February, all the rest being the same (!?).

That seems strange.  How much of a difference are we talking?

Not strange at all. The later in a model year the car is the less value it has. So for example, on a three year lease, a 2016 GTI will be worth more in February 2019 than in May 2019.

Sometimes the manufacturer will compensate for the lower residual by also lowering the interest rate.

[ArticSteve]

The above is all moot unless you get a firm interest rate and residual.  What are they?

[Dante]

   
Here it is the data as of today.


        MSRP     Invoice        CCC Buy Now      Markup   CCC Disc   Total Disc      Term     Rate           Residual
    $37,100     $33,925        $32,883              $3,175   $1,042     $4,217           4YR/20K   1.99%   $17,698


With 0% down, it's $417/mo taxes in.

[ArticSteve]

Crazy; forgot your general location?

I went to VW.ca and was unable to find the "lease and finace" page 

The residual looks OK,  The interest rate is acceptable and that discount is very hefty.  Best to assume that they will be subtracting $500 from that discount for "dealer fees".

When do the 2017s arrive and are they essentially the same car?
 

[Dante]

Crazy; forgot your general location?

I went to VW.ca and was unable to find the "lease and finace" page 

The residual looks OK,  The interest rate is acceptable and that discount is very hefty.  Best to assume that they will be subtracting $500 from that discount for "dealer fees".

When do the 2017s arrive and are they essentially the same car?

GTA

Build and Price and on the Summary page click on "Example CTA1" (very intuitive indeed!!!)

Fees will be max $500 ($100 CCC and max $400 dealer as stated in the terms) but the dealer admin fee can be waived or reduced I guess.

Not sure if MY17 will be any different - I didn't read about any changes so far. The platform is new, they just updated the infotainment system this year - not sure what can change significantly.

[ArticSteve]

Found the finance and leasing page ... 

Even at $415/mth/ taxes in for 4 years/80k km that is one heck of a discount/deal.



  Not sure if MY17 will be any different - I didn't read about any changes so far. The platform is new, they just updated the infotainment system this year - not sure what can change significantly.

I only asked because I don't follow the car.

[JohnnyMac]

2017 GTI should be pretty much exactly the same as 2016.  I have heard that VW is working on displaying the next generation Golf (and one would expect GTI) in a years time but here in NA we always get these cars a year later than Euro edition.  So I would think the next time we see any major changes would be 2019 at the earliest.

[Cord]

A VW salesman was telling me that the residual value in February will be higher than the residual value of the car in May hence my monthly will be higher if I buy in May vs. February, all the rest being the same (!?).

That seems strange.  How much of a difference are we talking?

Not strange at all. The later in a model year the car is the less value it has. So for example, on a three year lease, a 2016 GTI will be worth more in February 2019 than in May 2019.

Sometimes the manufacturer will compensate for the lower residual by also lowering the interest rate.

I concur, I am familiar with Ford and they adjust residuals downward every quarter. The key is "the rest being equal."

[Dante]

A VW salesman was telling me that the residual value in February will be higher than the residual value of the car in May hence my monthly will be higher if I buy in May vs. February, all the rest being the same (!?).

That seems strange.  How much of a difference are we talking?

Not strange at all. The later in a model year the car is the less value it has. So for example, on a three year lease, a 2016 GTI will be worth more in February 2019 than in May 2019.

Sometimes the manufacturer will compensate for the lower residual by also lowering the interest rate.

I concur, I am familiar with Ford and they adjust residuals downward every quarter. The key is "the rest being equal."

Thanks Cord. I was hoping you'll chime in as I thought, if true, this is not VW-specific thing. Can you elaborate on the comment about the "rest being equal"?
Is this just that the incentive and rates would change as well to somehow compensate?

I  have another related but Ford lease return specific (the GTI replaces the 2013 Focus).

Can I return the Focus a month or two in advance without penalty?

[Cord]

Can you elaborate on the comment about the "rest being equal"?
Is this just that the incentive and rates would change as well to somehow compensate?

Yes, that's basically it. While rates and rebates can fluctuate all through the year, lease residuals do not. Again, I can only speak to how Ford does it (but I think others will be similar). Lease residuals are published every quarter. As the year goes on the residuals get lower. This makes sense because residuals only reflect the anticipated value of the car at lease end. A car coming off lease in January will be worth more than the same car coming off lease the following December.

Usually, the best case scenario payment-wise, is when a car has a great lease rate right when it comes out.  It's possible that a manufacturer's finance arm could add incentives to make the payments lower later in the year. But there is no way to predict whether that might happen.

Can I return the Focus a month or two in advance without penalty?

It's been a while since I've worked directly in the lease return process. But in this situation there would be no penalty, per se. In order to return the car though, you would have to meet your obligations under the lease agreement. Namely, any remaining payments would need to be made and any mileage or damage charges would need to be satisfied.