Just returned my leased TDI - They sent me a bill for $350

[computerman3333]

Just returned my leased TDI - They sent me a bill for $350 plus tax for a disposition fee. I thought that was waived.

They also billed me for a lost key for $180 which I did turn both in. That one will be east to rectify but the $350 plus tax can be a problem.

Does anyone know if the disposition fee should be waived??

 

[Rico567]

I'm not leasing, but if it's waived, that should be in the CAS settlement document, which can be viewed or downloaded.......

 

[adimex]

I'm pretty sure any penalty/return fees are waived. I'll look into it since mine is a lease as well.

This gives me the idea of taking a picture of both keys, and all other floating equipment (tools, cargo velcro things, manuals, etc) when I return it.

 

[Rico567]

I'm pretty sure any penalty/return fees are waived. I'll look into it since mine is a lease as well.

This gives me the idea of taking a picture of both keys, and all other floating equipment (tools, cargo velcro things, manuals, etc) when I return it.

Sounds like a good plan. Leased cars are in a whole different ballgame from buybacks when it comes to turning them in.....

 

[adimex]

I guess the crooks can charge you if you're not staying with VW..


28. Will I have to pay an early termination penalty if I choose the Lease Termination option?
No. Volkswagen will provide full cancellation of the remaining terms of your lease with no financial penalty upon
return of the Eligible Vehicle lease issued by VW Credit, Inc. Volkswagen will pay for any early termination penalty,
but Volkswagen will not be responsible for fees for excess wear, use, and/or excess mileage at the point of vehicle
surrender, or other amounts due under your lease agreement such as delinquent lease payments and related late
payment fees, or costs associated with tickets, tolls, etc. The return of the vehicle will be scheduled as described
in Question 31. In addition, Volkswagen will give you a Lessee Restitution Payment (see Question 19).

 

[Steve Addy]

I guess the crooks can charge you if you're not staying with VW..


28. Will I have to pay an early termination penalty if I choose the Lease Termination option?
No. Volkswagen will provide full cancellation of the remaining terms of your lease with no financial penalty upon
return of the Eligible Vehicle lease issued by VW Credit, Inc. Volkswagen will pay for any early termination penalty,
but Volkswagen will not be responsible for fees for excess wear, use, and/or excess mileage at the point of vehicle
surrender, or other amounts due under your lease agreement such as delinquent lease payments and related late
payment fees, or costs associated with tickets, tolls, etc. The return of the vehicle will be scheduled as described
in Question 31. In addition, Volkswagen will give you a Lessee Restitution Payment (see Question 19).

So it doesn't say what a 'disposition fee' is for? It seems pretty clear that they won't cover fees for:
1) excess wear
2) use (what is this?)
3) excess mileage at surrender.

Other than #2 it's pretty clear what they won't cover, but what's a fee for use?

I would be surprised if this isn't dealt with, the court certainly wouldn't be happy about an owner being burdened with extra costs just to comply with the emissions settlement program so I would probably call the settlement people and get a clear answer about it. But first I would probably ask VW what a fee for 'use' is called.

I don't see anything in that section that talks about fees waived if you stay with VW.

Steve

 

[Rico567]

I guess the crooks can charge you if you're not staying with VW..


<snip>

Well, whether they're crooks or not, it's clear that the only thing that's waived is the early lease termination penalty, and that the lessee is responsible for anything else. So evidently the fee in question (they would say) is just part of what you're getting the compensation check for. We leased, once upon a time, but no more....lots of fine print in there.

 

[Jimmy Coconuts]

Did you schedule your appointment through the claims portal, and was the turn-in handled by an "ambassador"? Just wondering if they handle buyback and lease turn-ins the same way.

 

[adimex]

My guess is VW is only waiving the penalty fee. Court document states all other fees aren't taken care by VW.

As for the disposition fee, https://www.vw.com/content/dam/vwcom/PDFs/turn_in_process.pdf it is described on the last page.

*Your disposition fee on your current lease is waived if you lease or
purchase a new or Certified Pre-Owned VW through Volkswagen
Credit within 90 days of returning your VW model.

 

[scottb8888]

I am a lease customer and thought I was not responsible for the early termination fee as well.

 

[scottb8888]

Benefits to Lessees
Eligible Lessees may have their leases terminated (in a “Lease Termination”) with no termination fee, plus receive a Lessee Restitution Payment of approximately half of what a class member who owns an identical car would receive as Owner Restitution (“Lessee Restitution” or “Lessee Restitution Payment”). Alternatively, Eligible Lessees may choose to wait to see whether there will be an Approved Emissions Modification for their car and receive the modification plus the Lessee Restitution Payment.

 

[scottb8888]

It is in this doc: Executive Summary of Proposed Settlement Program.pdf

 

[scottb8888]

Just returned my leased TDI - They sent me a bill for $350 plus tax for a disposition fee. I thought that was waived.

They also billed me for a lost key for $180 which I did turn both in. That one will be east to rectify but the $350 plus tax can be a problem.

Does anyone know if the disposition fee should be waived??

Did you get a bill from VW Credit after your tun in

 

[ottomatic]

Leases can be voided if the original agreement was made under untruthful conditions — if the lessee is a minor, for example, or does not possess a valid driver’s license. In those cases, the leasing company would not want to be part of a fraudulent contract


http://www.nytimes.com/2016/10/28/a...ost-binding-of-contracts.html?ref=automobiles

 

[BlueGruff]

A lease disposition fee is part of your agreement. Just like your monthly payments, it is your responsibility to pay it whether or not you terminate lease early or finish the lease term. A disposition fee Is not a penalty or a punishment fee.

VW is not the only car company that charges a vehicle disposition fee. Typically the fee is waived if you get into another VW lease.


Sent from my iPhone using Tapatalk Pro

 

[wurzigdrei]

I was specifically told we would not be responsible for the disposition fee if we did the buy back. Both by vw and a claims rep. It's why I haven't turned my car in yet, even though the lease was up last week.

 

[computerman3333]

I was specifically told we would not be responsible for the disposition fee if we did the buy back. Both by vw and a claims rep. It's why I haven't turned my car in yet, even though the lease was up last week.

I think you need to at least pay month to month to keep your car past your lease end date. I paid three extra months. I doubt i could just sit on it.

 

[DanB36]

I was specifically told we would not be responsible for the disposition fee if we did the buy back.

I haven't paid a whole lot of attention to the lease provisions, as I don't lease cars, but this isn't what I'm reading in the long form settlement notice (see page 14). It says they'll waive early termination fees, and won't/can't impose any penalty for ending the lease early, but you'll still be responsible for anything else that you would otherwise be responsible for under the lease agreement. The disposition fee isn't a penalty, it has nothing to do with turning in the car early, and it's something you're responsible for under the lease contract, so I think you're going to have to pay it. But my opinion doesn't count for anything in this regard; ask your lawyers. info@vwclasscounsel.com.

 

[nextelmatt]

I think you need to at least pay month to month to keep your car past your lease end date. I paid three extra months. I doubt i could just sit on it.

VW, a company of calculated risk - basically thieves. This buyback is going to cost them probably 50% or less than the headlines they promoted when they claimed 10 Billion in fines. This settlement is in their favor.
They have already written this off on their books. Every payment, every car, every dime of interest is all profit for them now. Every car totaled, wrecked, salvaged, all in their pockets post settlement. Any owner that drives over the national average mileage allowance, all in their pockets too. Now extra fees. Keep up the good customer relations VW.
I really liked their cars. This is not a good way to keep a customer of both a 2014 and 2015 VW.

 

[DanB36]

VW, a company of calculated risk - basically thieves.

Does this have something to do with the text you quoted about needing to continue to pay your lease payment if you're keeping your car? Because it doesn't look like it does.

This buyback is going to cost them probably 50% or less than the headlines they promoted when they claimed 10 Billion in fines.

If any headlines were talking about $10B fines, they were clueless--$10B in fines was never in the settlement. $3B in fines, and another $2B of investment in ZEVs, is. Up to $10B (depending on who chooses buyback vs. fix) is. But with the exception of the actual fines, the settlement isn't about what it costs VW, but about what it gives to the customers and others.

This settlement is in their favor.

Of course it is, that's why they settled. A party doesn't settle if they don't believe the settlement will be advantageous to them.

Now extra fees.

You mean, extra fees that the lessees agreed to when they leased their cars?

 

[nextelmatt]

Does this have something to do with the text you quoted about needing to continue to pay your lease payment if you're keeping your car? Because it doesn't look like it does.


If any headlines were talking about $10B fines, they were clueless--$10B in fines was never in the settlement. $3B in fines, and another $2B of investment in ZEVs, is. Up to $10B (depending on who chooses buyback vs. fix) is. But with the exception of the actual fines, the settlement isn't about what it costs VW, but about what it gives to the customers and others.


Of course it is, that's why they settled. A party doesn't settle if they don't believe the settlement will be advantageous to them.


You mean, extra fees that the lessees agreed to when they leased their cars?

Dan, I completely hear your you. Just do not agree with how this is being handled, especially verification, etc.

 

[Kawazar]

It states in my VW lease that the disposition fee does not apply if the lease ends early or if you purchase the vehicle at lease end. The early termination fee is applied if it ends early but VW has agreed to waive that. So you need to look in your lease document.
But if someone went to the end of their lease and went to a month to month then maybe they would be responsible for the fee because they didn't end it early. They actually went over their term but thats just an assumption.

 

[seth1065]

just assume your getting $350 less from VW, this is how I am looking at having to spend some money getting the car ready for turn in. They could claim that is what the second part of your payment is for.

 

[scottb8888]

I think VW is responsible for anything except over mileage charges!

 

[DanB36]

I think VW is responsible for anything except over mileage charges!

The long form notice disagrees with you. See page 14:

28. Will I have to pay an early termination penalty if I choose the Lease Termination option?
No. Volkswagen will provide full cancellation of the remaining terms of your lease with no financial penalty upon return of the Eligible Vehicle lease issued by VW Credit, Inc. Volkswagen will pay for any early termination penalty, but Volkswagen will not be responsible for fees for excess wear, use, and/or excess mileage at the point of vehicle surrender, or other amounts due under your lease agreement such as delinquent lease payments and related late payment fees, or costs associated with tickets, tolls, etc.

 

[scottb8888]

Volkswagen will pay for any early termination penalty. In my lease I have a $350 Eary Term penalty

https://www.vwcourtsettlement.com/en/docs/Executive Summary of Proposed Settlement Program.pdf

 

[scottb8888]

The long form notice disagrees with you. See page 14:

Early Termination fee is what we are talking about. Both your and my example says VW will pay that.

 

[DanB36]

Early Termination fee is what we are talking about.

I don't think it is. As I understand it (and again, I don't lease cars, so please correct me if I'm wrong here), it's fairly common for a lease to incorporate a "disposition fee", which is a fee you pay when you return the car at the end of your lease. The link posted up-thread makes it sound like this is a common characteristic of VW leases, but it's waived if you buy or lease another VW. If that's the case, then no, it wouldn't sound like it would be waived by the settlement--it isn't a penalty, and it is an amount due under the lease agreement.

The early termination fee would be a penalty for terminating the lease early. That is waived by the settlements.

Edit: To sum up my understanding, it looks like if you turn in your car early, the lease is terminated, you pay no penalty, and you get the lessee restitution. If you turn in your car when your lease would have ended anyway, you still pay no penalty, but you'd be responsible for the disposition fee. In either case, you'd also be responsible for any other expenses under the lease agreement.

 

[scottb8888]

I'll look at my lease tonight.

 

[adimex]

When returning the vehicle early, this is what you need to pay:

Early Termination Liability. On termination, you agree to pay us the following:
+ A Vehicle Return Fee, if any, described in the Additional Fees and Charges section.
+ All accrued and unpaid amounts that are due or part due.
+The amount by which the Adjusted Lease Balance at that time exceeds the Realized Value.
+All official feeds and taxes imposed in connection with the Lease Termination.

Additional fees and charges:

+Vehicle Return Fee ($350)
+Disposition Fee ($350)
+Official Fees and Taxes
...

If VW is going to accept early termination without penalty, then logically, the fees should be paid by VW since they are part of the penalty (I'm no lawyer and I'm sure they'll try to get as much back from customers as possible).
Anyway,
I scanned the 2 sections from the actual lease paper:
https://goo.gl/photos/mdReVhYXDcjVgsZj9