2018 VW Tiguan Now Cheaper To Lease Than 2017 Model

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Senior Pricing Analyst

Alex Bernstein is the Senior Pricing Analyst for CarsDirect.com. Each month he studies immense volumes of pricing and incentives data in search of trends that are useful to car shoppers. In the process, he often breaks industry news stories -- his analyses and insights have been featured on websites such as Automotive News, The Detroit News, Autoblog, The Truth About Cars and The Car Connection.

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, Senior Pricing Analyst - January 16, 2018

Buying last year's model is often a great way to save extra money, especially when there's a redesign. However, that's not always the case, at least if you're planning to lease a Volkswagen Tiguan in January.

Based on our analysis, it's actually cheaper to lease the redesigned 2018 Tiguan compared to the outgoing generation that has been around since 2009. Here's a look at why that's the case.

Tiguan vs. Tiguan

This month, the 2017 Tiguan 2.0T S is listed at $239 for 36 months with $1,999 due at signing. It comes with an allowance of 12,000 miles per year and has an effective cost of $295/month. We consider it a fairly good value given the vehicle's $25,860 sticker price. But it's not the best deal.

At the same time, the redesigned 2018 Tiguan 2.0T S is listed at $199 for 36 months with $2,699 at signing based on an MSRP of $25,495. Although the mileage allowance is just 10,000 miles, the effective cost of the lease is $274/month, $21 less than last year's model.

So why is the 2018 Tiguan so much cheaper to lease than a version essentially unchanged since 2009? Based on unadvertised leasing documents from VW, the main reason appears to have to do with a big difference in underlying residual values.

The 2017 Tiguan S has a 36-month residual value of just 47%, although better-equipped versions like the SEL are as low as 42%. In contrast, the updated 2018 Tiguan S comes in at 58%.

The 2018 Tiguan also benefits from a boost in factory lease discounts to start the year. Most of the front-wheel drive versions are now eligible for $1,300 lease cash, an increase from last month's $700.

This month's offers also reflect the recently-announced 2018 base price cuts, which in the case of the Tiguan S equates to a $600 advantage compared to when the vehicle was first introduced last summer.

With an effective cost of $274/month, the 2018 Tiguan isn't cheap, but it is a pretty good deal. Here in California, that's still $19 more than the 2018 Toyota RAV4 and 2017 Mazda CX-5. The former is currently one of our top SUV lease picks.

, Senior Pricing Analyst

Alex Bernstein is the Senior Pricing Analyst for CarsDirect.com. Each month he studies immense volumes of pricing and incentives data in search of trends that are useful to car shoppers. In the process, he often breaks industry news stories -- his analyses and insights have been featured on websites such as Automotive News, The Detroit News, Autoblog, The Truth About Cars and The Car Connection.

Follow On: Google+ | Website