Imagine getting into a new vehicle with a payment that could range $39 to $99 per month. Seem like a fantasy? Well that is what a number of Volkswagen dealers across the U.S. are doing. An example is a Volkswagen dealer offering an $89 36 month lease on Jetta, after you hand over $2,500 as a down-payment.

 

It's part of an effort by Volkswagen to bring customers in now at a loss to have hopefully return in three years when the automaker will have a brand new lineup. 2018 will see Volkswagen in the beginning stages of their plans to introducing new products every five years - a seven-seat crossover is the first - and refreshing their product lineup every three years.

 

But even with this move, the question remains if this will help Volkswagen or not? Sales in the U.S. have dropped in the past two years, despite the overall market seeing growth.

 

Source: Bloomberg

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Good, but its only beneficial to those who actually plan on leasing cars. If you could buy a car and only have to play that much per month, I'd be sold!

So...VW and the Jetta going that cheap in price?

Well...it is the people's car after all. So it aint THAT bad of a marketing campaign. However, I wonder how the VW marketing gurus are gonna convince the elite to part with their money when the Phaeton arrives again for the second time. The thing is...the failure the first time...VW had increased their prices across their model lines to line themselves with the luxurious Phaeton....THIS time around...the Jetta has returned to its original formula it being entry level basic car and the Passat also has dropped a level.  The base Passat is where the Jetta once was...The Passat in the late 1990s reached entry level luxury...The CC Passat is where the Passat once was...

I fear the Phaeton will be another sales flop in the North American market. but I see a ton of Jettas being leased.

They need to do cheap leasing on the TDI models.  Those are the ones that hold their value the best and yet they have the highest lease costs.