Lease about to Expire - What are you all doing??

[computerman3333]

There doesn't seem to be a lot of discussion about us Lease holders. We too have options. What are all of you doing?

1. Simply turn in car and receive cash settlement (mine is $3,300 ish)
2. Buy out lease at residual value and take settlement (Residual of $15,300)

My lease expires in August so I need to decide quickly. I love my 2013 Passat TDI SE so keeping it would be great but my residual value of $15,300 is higher than KBB shows the value to be. Likely a few grand over. Maybe the dealer will cut me a deal to keep it and then get the settlement in addition from corporate. But I don't know if the dealer has incentive to sell it to me under residual???

I'm concerned with resale if I decide to purchase now.... especially if the fix is detrimental to performance/fuel economy or not even feasible.

What are all of you thinking about the lease options??

 

[computerman3333]

I guess the majority here are owners rather than lessees...

 

[solman1]

I am in a similar situation with my 2014 Jetta, but I have about six months until my lease is up. I had planned on buying my car at lease end but as it stands now the Jetta will not be worth the buyout price. I am not too sure that VW even wants me to buy it. I doubt they will offer any price concession if they would rather have the car back. I don't want to pay above book value for a tainted TDI so I may just have to walk away from the car.
It's a shame if I have to start the process all over again in the end.

 

[scottb8888]

Lease here, but it expires in April.

 

[transmit]

My situation is a bit different because my lease expired 5 months ago. I would have turned it in but because of excess mileage and a few dents and dings it would have cost me about $3,000 in penalties. So I decided to buyout the lease and it's turned out to be a good move since I'm now considered the owner and can get the full buyback amount (took me a while to verify this). If I was in a position where my lease hadn't terminated yet, that would be a tough one but I'd probably turn it in (drive it like hell though since VW will waive any penalties it seems).

 

[sierra3]

computerman....I don't know all of the details of your situation, but I would try to buy out the lease with no penalties...since you are keeping the car. Then, like you said you are an owner and you can base your decision on that. You are buying a car that you know...with presumably low mileage for $15K. Look around, TDIs are disappearing off of lots and prices are increasing due to this settlement. You will certainly find someone who will buy your car from you as soon as you own it. You can do that, or keep it and take advantage of what that buyer is trying to do to you...take advantage of you. Check out the buyback calculator...enter your numbers and make an informed decision.

 

[sierra3]

p.s. I would guess that there aren't too many leases on TDIs...due to the mind set of a person who wants to own a TDI, and exactly why there are so many unhappy with this settlement. Low mile leases are for the gassers.

 

[computerman3333]

My situation is a bit different because my lease expired 5 months ago. I would have turned it in but because of excess mileage and a few dents and dings it would have cost me about $3,000 in penalties. So I decided to buyout the lease and it's turned out to be a good move since I'm now considered the owner and can get the full buyback amount (took me a while to verify this). If I was in a position where my lease hadn't terminated yet, that would be a tough one but I'd probably turn it in (drive it like hell though since VW will waive any penalties it seems).

I'm not sure of this. I've got $7k in hail damage and will need to buy mine off lease next month unless somehow they take it back with the hail damage...

 

[Michel61]

I have 2 more years on my lease. It been a good car. But with the clock spring recall,air bag recall,wiring recall and now the heater core could plug up. What else could happen? Turbo? Adblue heater? Anyway the wife and I are just bitter and were just gonna take whatever and terminate the lease.

 

[computerman3333]

computerman....I don't know all of the details of your situation, but I would try to buy out the lease with no penalties...since you are keeping the car. Then, like you said you are an owner and you can base your decision on that. You are buying a car that you know...with presumably low mileage for $15K. Look around, TDIs are disappearing off of lots and prices are increasing due to this settlement. You will certainly find someone who will buy your car from you as soon as you own it. You can do that, or keep it and take advantage of what that buyer is trying to do to you...take advantage of you. Check out the buyback calculator...enter your numbers and make an informed decision.

I'm not sure you are correct although i hope you are. I do not beleive I can buy it and become an "owner" I believe I can never get more than the lease buyout even If i buy it next month.

My residual is $15,300 and it has $7k in hail damage. Other than that it feels brand new inside as I'm very careful with it.

 

[sierra3]

Yeah...like I said, "I don't know all of the details"...and $7K in hail damage wasn't considered. No one will touch it with that...except VW.

 

[autdi]

I'm not sure you are correct although i hope you are. I do not beleive I can buy it and become an "owner" I believe I can never get more than the lease buyout even If i buy it next month.

My residual is $15,300 and it has $7k in hail damage. Other than that it feels brand new inside as I'm very careful with it.

You are correct, if you haven't already completed the buyout of the lease, you cannot become an Eligible Owner on that car anymore, you will always be the lessee.

Also be aware that the Lease Termination only waives the early termination fees, it says nothing about waiving condition fees that are in the lease, damage/over miles those sorts of things. So while the trade in for owners has no conditions, the lease does, and all the settlement covers is the early termination fees.

 

[dborja]

You are correct, if you haven't already completed the buyout of the lease, you cannot become an Eligible Owner on that car anymore, you will always be the lessee.

Also be aware that the Lease Termination only waives the early termination fees, it says nothing about waiving condition fees that are in the lease, damage/over miles those sorts of things. So while the trade in for owners has no conditions, the lease does, and all the settlement covers is the early termination fees.

Yes, I read that. I'm over mileage and want to terminate my lease. I wonder if VW will waive the over mileage if I turn around and get a VW or an Audi?

 

[autdi]

Yes, I read that. I'm over mileage and want to terminate my lease. I wonder if VW will waive the over mileage if I turn around and get a VW or an Audi?

You can't do anything under the settlement until at least October, depending on scheduling, perhaps not until 2017 once you add up all the delays in the process. At this point, they have no incentive to let you out of the lease, certainly not to waive any fees, including the early termination and over miles. You can ask for anything you want, don't expect much though.

 

[dborja]

You can't do anything under the settlement until at least October, depending on scheduling, perhaps not until 2017 once you add up all the delays in the process. At this point, they have no incentive to let you out of the lease, certainly not to waive any fees, including the early termination and over miles. You can ask for anything you want, don't expect much though.

Thanks for the response. That's what I figured but just wanted to see if anyone has done anything preemptive along these lines.

In hindsight, I was considering converting this to a purchase before last September since we decided we wanted to keep the car. Now, things have changed...

 

[turtleboy]

My lease ends next month and was going to buy it out about a year and a half ago because I started driving a lot and VW told me to wait till the end of my lease because my interest rate was so low. Now I dont want the car anymore, but think my best interest is buying it and waiting for the settlement.

 

[computerman3333]

My lease ends next month and was going to buy it out about a year and a half ago because I started driving a lot and VW told me to wait till the end of my lease because my interest rate was so low. Now I dont want the car anymore, but think my best interest is buying it and waiting for the settlement.

What do you think the chances are you/I can negotiate a better price on our residual values. My 2013 Passat is likely worth about $2,500 under my residual price.

 

[computerman3333]

What do you think the chances are you/I can negotiate a better price on our residual values. My 2013 Passat is likely worth about $2,500 under my residual price.

Anyone know if dealerships will negotiate residuals values?? I called my dealer and they said no negotiation possible. The residual is fixed and they tack on $599 for processing.

 

[solman1]

Who owns the car if you don't buy it at lease end? Is it the dealer ,or as I believe VW. I think VW will adjust the price to reflect market value unless they prefer to have the car back.
In that case I'm hoping they give a serious discount (25% or so) off msrp.

 

[Redeemed]

I highly doubt Vw will negotiate any price break for us to buy out our leases.
The goal is to get them back in the fold and off the road. Hence, I believe they will hold to contract stated residuals. My opinion.

 

[turtleboy]

Anyone know if dealerships will negotiate residuals values?? I called my dealer and they said no negotiation possible. The residual is fixed and they tack on $599 for processing.

Its my first VW lease. I had a BMW Z4 before and my residual was around $32k. At my lease end the trade in value was around $18k. They told me that they could buy the car from BMW for $22k and thats the lowest I could buy it from them. Either way, the last visit I had at the dealer showed that I was way better off buying the car and being classified as a owner and not paying the overage on the miles and I think I would get about $2500 more.

 

[computerman3333]

I may be best to extend my lease a few months until all is sorted out. I don't want to return the car before they have a solid plan in place as it may affect how they handle the inspection process as well.

 

[turtleboy]

yes, extending the lease is in your best interest. Thats what I am doing now.

 

[computerman3333]

yes, extending the lease is in your best interest. Thats what I am doing now.

I think I can only extend for 3 months. Since my lease is up August 26th, that will extend me until November 26th. Hopefully by then VW will have a plan in place. I don't want to but the car at residual ($15,300) Once you add the $599 service fee and taxes, this thing will cost me over $17K for a car likely worth $13K. Plus I have Hail damage to deal with. So i'm hoping the restitution will help off-set that cost.

 

[autdi]

Its my first VW lease. I had a BMW Z4 before and my residual was around $32k. At my lease end the trade in value was around $18k. They told me that they could buy the car from BMW for $22k and thats the lowest I could buy it from them. Either way, the last visit I had at the dealer showed that I was way better off buying the car and being classified as a owner and not paying the overage on the miles and I think I would get about $2500 more.

Buying out a VW lease does not make you an owner unless you did the lease buyout before 6/28, you are still a leasee even if you buy it out.

 

[UrbanSurfer]

(Have had 5-VW leases) just ended my Jetta 2013 Sportwagen TDI this week. luvved the car, easy to drive, great visibility, pep and performance. We had the exact same color, model in 2010

over on mileage, had some minor wear & tear and I expect to have to deal with the turn-in fees that I used to roll over when I re-leased.

VWCredit stood on the residual amount if I wanted to buy the car ($15,500) no negotiation or consideration for being a long-time customer. Thought about doing the purchase anyway and go from Lessee to Owner for the potential buyback numbers$. But that involved doing the purchase with a loan, then starting to make payments for the next few months, probably adding up to at least a $1,000 by the time the buyback began. When I looked at this expense, the Time, added mileage and what I would potentially net from it, the overall risk did not seem worth it for the difference in money. Staying as a Lessee is no-risk, a sure payment and no-hassle of a 3-year old car with 50K miles. Now I can shop for a new car in the summer deals and I'm sure that's a happier outlook, for me.

FYI - from my own inquiries I was told as the original Lessee if I bought the car my status could change to Owner.

 

[computerman3333]

(Have had 5-VW leases) just ended my Jetta 2013 Sportwagen TDI this week. luvved the car, easy to drive, great visibility, pep and performance. We had the exact same color, model in 2010

over on mileage, had some minor wear & tear and I expect to have to deal with the turn-in fees that I used to roll over when I re-leased.

VWCredit stood on the residual amount if I wanted to buy the car ($15,500) no negotiation or consideration for being a long-time customer. Thought about doing the purchase anyway and go from Lessee to Owner for the potential buyback numbers$. But that involved doing the purchase with a loan, then starting to make payments for the next few months, probably adding up to at least a $1,000 by the time the buyback began. When I looked at this expense, the Time, added mileage and what I would potentially net from it, the overall risk did not seem worth it for the difference in money. Staying as a Lessee is no-risk, a sure payment and no-hassle of a 3-year old car with 50K miles. Now I can shop for a new car in the summer deals and I'm sure that's a happier outlook, for me.

FYI - from my own inquiries I was told as the original Lessee if I bought the car my status could change to Owner.

I really don't think your status can change to owner. Do you have a link. Nobody here has ever confirmed that???

 

[UrbanSurfer]

that input came from a lawyer at law firm I signed on with as part of the Emission scandal. he felt there was room to change the status you had to a car that was already in your possesion. But I've seen other opinions where folks felt the lines have already been clearly established.

 

[computerman3333]

that input came from a lawyer at law firm I signed on with as part of the Emission scandal. he felt there was room to change the status you had to a car that was already in your possesion. But I've seen other opinions where folks felt the lines have already been clearly established.

Well, I look forward to how this one plays out. Let's see what actually gets signed on Tuesday and I bet the language will be tweaked in places..... maybe even affecting us lease holders.

 

[autdi]

that input came from a lawyer at law firm I signed on with as part of the Emission scandal. he felt there was room to change the status you had to a car that was already in your possesion. But I've seen other opinions where folks felt the lines have already been clearly established.

It's crystal clear in the CAS settlement docs.

2.29. “Eligible Lessee” means (1) the current lessee or lessees of an Eligible Vehicle with a lease issued by VW Credit, Inc.; (2) the former lessee or lessees of an Eligible Vehicle who had an active lease issued by VW Credit, Inc. as of September 18, 2015 and who surrendered or surrenders the leased Eligible Vehicle to Volkswagen; or (3) the owner of an Eligible Vehicle who had an active lease issued by VW Credit, Inc. as of September 18, 2015, and who acquired ownership of the previously leased Eligible Vehicle at the conclusion of the lease after June 28, 2016. 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.

Case 1, you had a lease on 9/18/15 and are still in the lease
Case 2, you had a lease on 9/18/15 and turned the car in after that date.
Case 3, you had a lease on 9/18/15 and bought out the lease after 6/28/16

If you bought out the lease before 6/28/16, you are an owner. If you leased, and turned it in before 9/18/15, you get nothing. Once classed as a Lessee, nothing you can do changes that status.