A little known program available to you from VW Credit called the Multi Security Deposit Lease, allows you to lower you monthly payments without placing a large down payment on the vehicle.  While VW currently waives the Security Deposit on all leases.  You can still place up to 10 security deposits on your lease vehicle.  The benefit to you it that VW Credit reduces the rent factor by 8 basis points for each security deposit placed.

As an example a 2009 Jetta SE with Automatic Transmission would lease for 36 months with 12000 miles for $271.58 tax included with a total of $521.42 due at signing assuming a plate transfer. The rent factor is .00101 on this lease.

Now lets figure the same vehicle with 6 security deposits totaling $1650.  The new monthly payment would be $255.10 and the total due at signing would be $2154.94 including the $1650 in security deposits.  This is because the rent factor due to the security deposits was reduced to .00053.  The monthly savings are $16.48 per month, or $593.28 over the 36 month term.

This represents roughly a 12% return per year on the $1650 in refundable security deposits held by VW Credit. The other benefit to security deposits over down payment is that in the event of a total loss a lease with money down would get nothing back, while the lease with security deposits would get the entire amount back once the insurance claim was paid.

In today's economy I know of no investment that is returning a 12% per year return with no risk to the consumer. This is definitely a program that you should consider if you have the disposable cash to tie up for the next 3 years. 

For more information on this program please contact me either by email, or phone at 248-656-0400.

Rick Kellogg
E-Commerce Director
Fox Automotive, Inc