Q5 3.0 (Gen Two) question - lease ending

Hi all,

I have a question-- not sure if anyone can answer it. I have a 2015 Q5...so I am part of the 3.0, Generation 2 settlement...

I lease my car, and my lease ends 12/18/17. I went for my initial appointment for the first $1000 bucks and then now we are waiting for a fix...and the court docs say November 2017 for my car...and then once it is fixed, I get another $1000...but if its not fixed, then there's more $ coming.

What happens if my lease ends in between all of that? If they get their deadline extended for 90 days, which I expect they will...and my lease ends in that time...am I screwed?

Any input appreciated, thank you!

If there's no approved fix by mid December, you gotta buy out the lease to keep your buyback hopes alive. It could become very profitable.

1. Even if there is a "fix," don't do it
2. Buy out the lease at end of term
3. "Sell" it to a trusted family member (no sales tax)
4. Have family member turn it in for second half of "owner" restitution which is significantly greater than leasee restitution.

Ideally you wouldn't have claimed the first half payment and the family member could have claimed the entire owner restitution

tenacious84 said:

1. Even if there is a "fix," don't do it
2. Buy out the lease at end of term
3. "Sell" it to a trusted family member (no sales tax)
4. Have family member turn it in for second half of "owner" restitution which is significantly greater than leasee restitution.

Ideally you wouldn't have claimed the first half payment and the family member could have claimed the entire owner restitution

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I don't think this approach used successfully with the 2.0 vehicles pertains to the 3.0. Copied directly from the settlement notice:

7. Am I included in the Class Action Settlement if I leased and then purchased the vehicle that I now own?

Yes, you are included in the Class Action Settlement if your lease was with VW Credit, Inc. (including Audi Financial Services) for Volkswagen and Audi vehicles or Porsche Financial Services, Inc. for Porsche vehicles. The benefits you will receive depend on which Generation vehicle you own and when you purchased your vehicle. If you purchased your vehicle off lease on or before January 31, 2017, you will be an Eligible Owner. If you purchase your vehicle off lease after January 31, 2017, you will be an Eligible Lessee.



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.

Dr. Chill, thanks for the clarification

rrrQ5tdi said:

Hi all,
I have a question-- not sure if anyone can answer it. I have a 2015 Q5...so I am part of the 3.0, Generation 2 settlement...
I lease my car, and my lease ends 12/18/17. I went for my initial appointment for the first $1000 bucks and then now we are waiting for a fix...and the court docs say November 2017 for my car...and then once it is fixed, I get another $1000...but if its not fixed, then there's more $ coming.
What happens if my lease ends in between all of that? If they get their deadline extended for 90 days, which I expect they will...and my lease ends in that time...am I screwed?
Any input appreciated, thank you!

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Settlement documents say December 20th for your car. You really got screwed with the lease ending date.

The $2000 former lessee payment and half of the Bosch payment ($750 - half of $1500) is probably all you'll see unless there is a loophole I'm not aware of.

You might consider buying the car anyway if the purchase price is reasonable. The extended warranty, the possibility of a buyback, and the fact that it is an effing nice car that won’t be available with this engine anymore might be factors.

If the lease was through Audi Financial, I'm sure the lease buyout is less than the actual vehicle value, especially with the additional money if there's an approved repair (or a buyout), even as a former lessee. Aside from which the 3.0L TDI motor is a masterpiece.

Mythdoc said:

You might consider buying the car anyway if the purchase price is reasonable. The extended warranty, the possibility of a buyback, and the fact that it is an effing nice car that won’t be available with this engine anymore might be factors.

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Those who buy out leases on Gen 2 3.0L vehicles are not eligible for the buyback, so that's not great advice.

Thanks, all. This really sucks.

Fourplay said:

Those who buy out leases on Gen 2 3.0L vehicles are not eligible for the buyback, so that's not great advice.

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The car itself would be eligible for a buyback, so its value to OP would be much higher whatever happens next. I certainly would wait at this point rather than return it or sell it to anyone else for less than its best price, especially when it has so much value as both an asset and as a car.

Last thing I would do in OP's situation is sell it to a flipper.

Mythdoc said:

The car itself would be eligible for a buyback, so its value to OP would be much higher whatever happens next.
I certainly would wait at this point rather than return it or sell it to anyone else for less than its best price, especially when it has so much
value as both an asset and as a car.

Last thing I would do in OP's situation is sell it to a flipper.

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I wish that were the case, but it's not. Vehicles with an active lease after January 31, 2017 are forever considered "leased vehicles".

From the settlement:

"If you purchase your vehicle off lease after January 31, 2017, you will be an Eligible Lessee.

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."

This loophole was closed after the 2.0L settlement. I discovered that lessees could buy out their lease and sell their cars to family
members to get full buyback, but the attorneys eliminated this possibility for 3.0L vehicles.

Lessees also get additional $$$ if an approved repair is not available in a timely fashion, even if their lease ended. Per the settlement page 52:

If an Emissions Compliant Repair for your vehicle is not available on time, you will instead be offered a Lease Termination or Approved Emissions Modification, and a payment. The Approved Emissions Modification option will only be available if an emissions modification is approved by the EPA and CARB. The amount you receive will be the same whether you choose a Lease Termination, Approved Emissions Modification, or no longer have an active lease, and depends on your vehicle’s model year, model, and factory options as shown in the second table below. If an Emissions Compliant Repair is not
available on time, payments to Generation Two lessees range from $5,677 to $12,492.

These tables assume that you leased vehicle with VW Credit, Inc., Audi Credit, or Porsche Financial Services, Inc. on September 18, 2015 and/or November 2, 2015 when the emissions accusations became public. If you purchased your leased vehicle before January 31, 2017 and still own it, then you will be treated as an owner for purposes of the settlement and should use the tables in the owner section above to find your range of possible payments.

^^yes, a significant uptick in payments to lessees in the event of a “buyback.” I am fascinated actually to see how this might work in the real world, assuming a timely fix doesn’t come through. Lessee has a contractual right to buy the car at end of lease; buyback is announced; EPA wants offending cars off the road...if the order of these things goes as I have written them, haven’t we closed one loophole only to open another??

What if you sell it to a dealer and then have your family member buy it from the dealer.

TDIforDays said:

What if you sell it to a dealer and then have your family member buy it from the dealer.

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Only downside is that sales tax would have to be paid twice plus any dealer fees tacked on for the resale.

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tenacious84 said:

1. Even if there is a "fix," don't do it

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Aside from the other reason already posted about why this won't work (any future owner would be treated as a Lessee), with the 3.0 settlement, if there is a timely fix, there's no buyback. So, if there is a fix, and OP doesn't get it, OP gets nothing.

Dr Chill said:

Only downside is that sales tax would have to be paid twice plus any dealer fees tacked on for the resale.

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Why would sales tax be paid twice? The sale to the dealer wouldn't be taxable.

DanB36 said:

Why would sales tax be paid twice? The sale to the dealer wouldn't be taxable.

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I was thinking he needed to buy it off the lease and pay sales tax first but you are correct. He could sell the car to a dealer and face no tax consequences.

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If you wanted to find out if the fix was rejected, you could probably just extend your lease for a month or two. It's usually pretty easy to do.