Here is my take on VW denying leases (sorry for long post). Input appreciated ...
This is not really related to salvage titles which is the focus on this group, but as a FYI - VW is pulling a new stunt. So some salvages will be swept up.
If a car was leased, then they are refusing it all of a sudden. In the 2.0 documentation under eligible owner they really do not have much of a leg to stand on. On 3.0 it better for VW but not great - see below.
Basically, under 2.0 docs if a car was leased and you bought the car after your lease you are a eligible lessee not owner. That means no buyback. In 3.0 same thing except any 3rd party that buys it from you is also a eligible lessee. It is unclear if a 3rd party sells to another 3rd party if it is still included or how an auction hows.
Basically, if you buy a car that was a lease it will be a headache going forward. VW NEVER looked at this before. Now that they have 85% compliance and they get the cash from $10B pot after settlement, they are being sticklers.
Here is the issue - how do you know previous history of the car. A car might be 'leased' on an autocheck, but only VW Credit leases are affected.
According to stats I found, VW leased (and still does) 70 to 80 % of their cars. Remember sign and drive. Great deals. So if this was the case, then people would only get a few thousand instead of the buyback and thus no one would turn the cars in. I am not sure if they ignored this clause on purpose until they go to 85% or something else. Under VW new reject leases, there is no mechanism to get paid for fix. Where is FTC on this?
I do not think these clauses would stand up in court, but you do not get court. You get CRC which rules in favor of VW most of the time. Plaintiff counsel is also in collusion with VW in my opinion. Fighting the largest automaker in the world is a fools errand. Bottom line, avoid leased cars.
Here are specifics ...
Eligible owner in 2L settlement.
XX
Eligible Vehicle who had an active lease issued by VW Credit, Inc. as of
September 18, 2015 and purchased the Eligible Vehicle previously leased by that owner after June 28, 2016 shall be an Eligible Lessee.
XXXX
Here is 3.0 Eligible owner :
3.0L Settlement Program, except that the owner
of an Eligible Vehicle who had an active lease issued by a Covered Lessor at any point between
September 18, 2015, and November 2, 2015, (inclusive) and purchased the Eligible Vehicle previously leased by that owner 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 after January 31, 2017; and a third party who acquires ownership of an Eligible Vehicle after January 31, 2017, 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.
XXX
Note people are getting that had leases.
XXX
You are receiving this notification because you have submitted a claim for a VIN that was leased as of June 28, 2016 (2.0-liter vehicles) or January 31, 2017 (3.0-liter vehicles) and subsequently purchased. As such, the proper categorization for your claim is for an Eligible Lessee because you are the owner of a vehicle that had an active lease as of September 18, 2015 and/or November 2, 2015 and ownership of the vehicle was acquired by you or the prior owner after June 28, 2016 (2.0-liter vehicles) or January 31, 2017 (3.0-liter vehicles). In order for your claim to be processed you will need to re-classify as an Owner (Lease Convert). To prevent your claim from progressing in the incorrect class your Government-issued ID has been rejected from your claim with claim reference no. XXXXX. Please contact the Settlement Support Team at 1 844 98 CLAIM for assistance with resetting your claim and filing as an Owner (Lease Convert).
Volkswagen cannot continue to process your claim for this vehicle until you re-classify your claim.