VW Lease end trade in question.

[abbeybluegti]

My parents recently went to trade in their 09 CC sport for an IS250 and when we called to get the 10 day payoff we were given a figure of 15,xxx and we asked if there would be addition fees and were told no. After leasing the Lexus, the dealer called back to indicate they were given a payoff amount of $17,xxx. The dealer indicated that inorder for them to purchase the car from vw credit they would have to pay market value. We read the contract and found no such language and the local VW dealer confirms this is the case but VW dealers can purchase for the same 10 day payoff figure we were quoted. Huh? Has anyone else had this experience?

[rodion_kjd]

Your Lexus dealer screwed up. The customer has a guaranteed lease end value which is on your contract, the $15,xxx number. That contract is between YOU and Volkswagen and you're entitled to that purchase amount. Volkswagen is under no obligation to sell the car to a third party for that price. Your salesperson should have called VW Credit and obtained an accurate buy-out figure.

Now that I think about it your Lexus dealer didn't follow the correct procedure and your parents probably aren't liable for the difference.

-Ken

[daveg243]

I had a similar experience at lease end on my Tiguan. VW Credit told me that VW will honor residual value/buyout price to you ONLY. If you purchase/lease through VW Credit you can use any equity gained should your market value be above residual/buyout towards another VW. This keeps customers in a VW. They also waive the $350 termination fee and usually give you $500 credit for loyalty You CANNOT!!! got to CarMax, or other manufacturers and use the residual/buyout price as the payoff. They (VW Credit) will Market adjust the price accordingly should you have equity. I read the terms on the contract and it's very vague. I too, did not know this, nor was I told this by the dealer (/surpise). Caveat Emptor! Also I was told that Mazda/Ford employ this method as well as Audi. No other manufacturers I know of pull this stunt.

BTW I traded in the Tiguan with $1500 in equity, plus $500 for the loyalty and they waived the $350 termination fee. Have a Golf now but know I'm stuck with VW

[rodion_kjd]

I had a similar experience at lease end on my Tiguan. VW Credit told me that VW will honor residual value/buyout price to you ONLY. If you purchase/lease through VW Credit you can use any equity gained should your market value be above residual/buyout towards another VW. This keeps customers in a VW. They also waive the $350 termination fee and usually give you $500 credit for loyalty You CANNOT!!! got to CarMax, or other manufacturers and use the residual/buyout price as the payoff. They (VW Credit) will Market adjust the price accordingly should you have equity. I read the terms on the contract and it's very vague. I too, did not know this, nor was I told this by the dealer (/surpise). Caveat Emptor! Also I was told that Mazda/Ford employ this method as well as Audi. No other manufacturers I know of pull this stunt.

BTW I traded in the Tiguan with $1500 in equity, plus $500 for the loyalty and they waived the $350 termination fee. Have a Golf now but know I'm stuck with VW

I can tell you BMW-FS does this as well. When I pull payoffs for customers there is a dealer payoff and a customer payoff. Similarly if a 3rd party (Ford lot, whatever) calls FS the number is higher for them. They do this for a couple of reasons.

1. Yes, it does make staying with your brand more enticing from a financial standpoint.

2. It gives the brand dealers an advantage: if they can buy the car for $10,000 they can sell it for $13,000 and make a profit. If Ford buys it and they have to pay $12,000 for it they either have to price it at $15,000 (making them overpriced in the used market) or sell it at cost negating the advantage.

-Ken

[Dandbest]

what happened was that your parents had less than 90 days left on their lease, at which point VW credit charges "market price" not just other makes, but VW dealers too, which as far as I'm concerned is a bag of s*it. When you are outside 90 days of maturity, anyone can buy the car for residual plus remaining payments minus rent charge. So to answer your question, depending on the dealer you're dealing with, you may or may not be stuck paying the difference. I hate VW credit...partners my arse...