Current owner of formerly leased vehicle

Big R

Well-known member
Joined
Jun 28, 2016
Location
Boston
TDI
2015 Audi A3, 2015 Audi Q5
Good morning! I purchased a 2015 Gen2 Q5 last October. Car had been previously leased by Party 1 and then "owned" by Party 2 (spouse?) for one day. 50% participation payment made to one of the two, I'm not sure which.

I'm now getting my offer for the balance, but it's for 1/2 of the lessee payment, not 1/2 of the owner payment.

Doesn't seem right to me. I know about the buy off lease and then claim as owner strategy, but does that affect a subsequent purchaser?

Thanks for any thoughts? I've gotten nowhere with the claims hotline (no surprise), and left a msg for Class Counsel.
 

Big R

Well-known member
Joined
Jun 28, 2016
Location
Boston
TDI
2015 Audi A3, 2015 Audi Q5
Double dipping? Prior owner got half, I get the other half. No double dipping. Question is whether my 2d half is based on prior owner's payment as former lessee, or current owner (me) payment based on "owner".
 

2010TDI

Veteran Member
Joined
Nov 2, 2011
Location
USA
TDI
2010 Jetta Sedan TDI 6MT, 2010 Jetta SportWagen TDI DSG (sold), 2014 Jetta Sedan TDI DSG (sold), 2015 Golf SportWagen TDI DSG
I purchased a 2015 Gen2 Q5 last October. Car had been previously leased by Party 1 and then "owned" by Party 2 (spouse?) for one day. 50% participation payment made to one of the two, I'm not sure which.
I'm now getting my offer for the balance, but it's for 1/2 of the lessee payment, not 1/2 of the owner payment.
Doesn't seem right to me. I know about the buy off lease and then claim as owner strategy, but does that affect a subsequent purchaser?
So how much is your offer for the balance, $1,000? (1/2 of lessee payment of $2,000)

There have been a few other threads discussing payments for 3.0L vehicles that had a prior lease, here are two:
It generally sounds like you don't get much out of participating with a 3.0L vehicle that had a prior lease through VWOA as, unlike the 2.0L settlement, the lease status follows the car and not just the lessee. This is too bad since a lot of the Generation Two 3.0L vehicles I have seen lately, that have not already had the fix, show a prior lease through Carfax. All of these vehicles that I have checked under the claims portal make it look like there is a lot of money on the table ($8,800 - $9,500), but it sounds like this may not be correct and that the portal does not know that it was a lease car. With what I have seen with these prior lease vehicles, it makes me very hesitant to consider buying one, or at least has made me stop including potential fix money in looking at the cost of these vehicles. I have not read up on how the Bosch money may be affected by lease status.

It looks like anyone that buys a Generation Two 3.0L after January 31, 2017 is treated as an Eligible Lessee if that vehicle had an active VWOA lease as of September 18, 2015 and/or November 2, 2015.
  • Final Approval Order, Page 6: An Eligible Lessee is: [...] "or (3) the owner of an Eligible Vehicle who had an active lease issued by VW Credit, Inc. Generation One vehicles) or VW Credit, Inc. or Porsche Financial Services, Inc. (Generation Two vehicles) as of September 18, 2015 and/or November 2, 2015, and acquired ownership of the previously leased Eligible Vehicle at the conclusion of the lease after January 31, 2017. For avoidance of doubt, no person shall be considered an Eligible Lessee by virtue of holding a lease issued by a lessor other than VW Credit, Inc. or Porsche Financial Services, Inc."
  • Final Approval Order, Page 6 and 7: An Elgible Owner is: [...] "except that the owner of an Eligible Vehicle who had an active lease issued by VW Credit, Inc. (Generation One vehicles) or VW Credit, Inc. or Porsche Financial Services, Inc. (Generation Two vehicles) as of September 18, 2015 and/or November 2, 2015, and purchased that previously leased Eligible Vehicle off lease after January 31, 2017, shall be an Eligible Lessee. For avoidance of doubt, an Eligible Owner ceases to be an Eligible Owner if he transfers ownership of the Eligible Vehicle to a third party. A third party who acquires ownership of an Eligible Vehicle thereby becomes an Eligible Owner if that third party otherwise meets the definition of an Eligible Owner, unless the third party acquired the Eligible Vehicle from an Eligible Lessee, in which case that third party will be an Eligible Lessee. "
  • 3.0L Amended Class Agreement, Page 30: "Lessee Repair Payment. Eligible Lessees and Eligible Former Lessees will be entitled to a Lessee Repair Payment of $2,000 as further detailed in paragraph 9 of Exhibit 1B. "
  • Amended Exhibit 1B, Pages 1 and 2: "Eligible Lessees who (i) held a lease of a Generation Two Eligible Vehicle on September 18, 2015 and/or November 2, 2015, and continue to hold that lease, or (ii) obtained ownership of their previously leased Eligible Vehicle after January 31, 2017 and retain ownership, shall be offered an Emissions Compliant Repair and an Emissions Compliant Repair Payment for Lessees (a “Lessee Repair Payment”). A lessee who obtained ownership of his, her, or its previously leased Eligible Vehicle on or before January 31, 2017 and still owns the vehicle when he, she, or it participates in the Settlement Program shall be treated as an Eligible Owner."
  • Amended Exhibit 1B, Page 5: "Eligible Lessees and Eligible Former Lessees. Eligible Lessees of Generation Two vehicles who have an active lease or own the Eligible Vehicle shall be entitled to an Emissions Compliant Repair free of charge and an Emissions Compliant Repair Payment for Lessees (a “Lessee Repair Payment”) of $2,000. Eligible Lessees who no longer lease and do not own the Eligible Vehicle and Eligible Former Lessees shall be entitled to a Lessee Repair Payment of $2,000, and not the Emissions Compliant Repair."
  • Amended Exhibit 3, Page 10: "I bought my vehicle after September 18, 2015. Am I a Class Member? If you acquired an Eligible Vehicle after September 18, 2015 and still own it, you are a Class Member. While you continue to own it, you are an Eligible Owner, unless you bought from an Eligible Lessee, in which case you are an Eligible Lessee."
  • Amended Exhibit 3, Page 23:
    • Category: Eligible Lessees (now owns car)
    • Definition: At the time of Reduced Emissions Modification, owns an Eligible Vehicle that had a lease issued by VW Credit, Inc. (including Audi Financial Services) or Porsche Financial Services, Inc. and that was purchased off lease after January 31, 2017
    • Benefit: Emissions Compliant Repair + Lessee Repair Payment Half is available upfront, half when the repair is performed.
    • Amount of Repair Payment: $2,000
 

Big R

Well-known member
Joined
Jun 28, 2016
Location
Boston
TDI
2015 Audi A3, 2015 Audi Q5
2010TDI,
Thanks so much for the thorough answer. I had seen those other two threads, but your answer is much more thorough!

So, I purchased mine from a Dealer. Absolutely never occurred to me that the Dealer could be deemed a Prior Lessee. Car was originally leaseed by employee of dealer, who sold to 3d party (likely relative), who then one day later sold to Dealer.

...and, yes, I'm being offered $1000. Was expecting $4500 or so.
 
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