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    Thread: Elderly relative leased a 2016 VW Sportwagen SE... VW credit is asking for high buyout amount

    1. Member absolutt's Avatar
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      06-07-2019 04:24 PM #1
      Here's the situation:
      My mother leased a 2016 VW Sportwagen SE, and unfortunately did it without any involvement of me or my sister. I never looked at the lease agreement, but in hindsight I probably should have. She's living in Sarasota FL, while I'm up in NJ. Anyway, the lease ended in April. She had contacted the VW dealership about the option of buyout and the rep there said "wait until June." VW Credit finally contacted my mother and she'd told them she was interested in buying it. But when they came up with the residual value and final costs, they're claiming a buyout cost of $19,900. Her Sportwagen has only 8,000 miles on it... but it's 3 years old. The buyout cost seems a bit high.

      It seems that the bank (VW Credit) doesn't factor in the actual depreciation. I'm thinking this is a complete ripoff and my mother should just give the car back.

      Has anyone else here found VW Credit leasing arrangements to be this predatory?
      Last edited by absolutt; 06-10-2019 at 04:37 AM.
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    3. 06-08-2019 09:38 AM #2
      Quote Originally Posted by absolutt View Post
      Here's the situation:
      My mother leased a 2016 VW Sportwagen SE, and unfortunately did it without any involvement of me or my sister. I never looked at the lease agreement, but in hindsight I probably should have. She's living in Sarasota FL, while I'm up in NJ. Anyway, the lease ended in April. She had contacted the VW dealership about the option of buyout and the rep there said "wait until June." VW Credit finally contacted my mother and she'd told them she was interested in buying it. But when they came up with the residual value and final costs, they're claiming buyout cost of $19,900 when she made a total of $23,390 in payments. Her Sportwagen has only 8,000 miles on it... but it's 3 years old. The buyout cost seems absurdly high.

      It seems that the bank (VW Credit) doesn't factor in the actual depreciation. I'm thinking this is a complete ripoff and my mother should just give the car back.

      Has anyone else here found VW Credit leasing arrangements to be this predatory?
      Her buyout amount should be listed on her original lease contract.

      What is her VIN. I can look up buyout info.

    4. Member absolutt's Avatar
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      06-08-2019 03:37 PM #3
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      Here's the KBB assessment of private party selling value:


      Comparatively, this is the closest vehicle I could find in her area:

      That car has the "limited edition" package, which is just a little more expensive than the SE option package she got. That car has 25k miles and dealer price is just shy of $17,000.
      Last edited by absolutt; 06-08-2019 at 03:47 PM.
      Current ►► 2007 A3 2.0T DSG/OS/TP/CW/CP Ocean Blue —— Previous2003 TTQR 225hp Ocean Blue

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    6. 06-08-2019 11:42 PM #4
      Quote Originally Posted by absolutt View Post
      Here's the situation:
      My mother leased a 2016 VW Sportwagen SE, and unfortunately did it without any involvement of me or my sister. I never looked at the lease agreement, but in hindsight I probably should have. She's living in Sarasota FL, while I'm up in NJ. Anyway, the lease ended in April. She had contacted the VW dealership about the option of buyout and the rep there said "wait until June." VW Credit finally contacted my mother and she'd told them she was interested in buying it. But when they came up with the residual value and final costs, they're claiming buyout cost of $19,900 when she made a total of $23,390 in payments. Her Sportwagen has only 8,000 miles on it... but it's 3 years old. The buyout cost seems absurdly high.

      It seems that the bank (VW Credit) doesn't factor in the actual depreciation. I'm thinking this is a complete ripoff and my mother should just give the car back.

      Has anyone else here found VW Credit leasing arrangements to be this predatory?

      Well shes obviously not paying much attention. I didn't pay much more than 23,390 for my tdi sportwagen when I bought it.

      Invoice on a 2016 SE sportwagen was ~$25,944

      if she paid 23,390 in payments she should have bought it...

      but by all means if she has to own it, why not pay twice as much? Leases are great for having new expensive cars cheaply ever couple years and as nice write offs. Your mom is a sucker it seems and should not be leasing cars until she understands them. Sucks the price of "education" is so high these days.

    7. Member absolutt's Avatar
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      06-10-2019 04:36 AM #5
      Quote Originally Posted by Aseras View Post
      Well shes obviously not paying much attention. I didn't pay much more than 23,390 for my tdi sportwagen when I bought it.

      Invoice on a 2016 SE sportwagen was ~$25,944

      if she paid 23,390 in payments she should have bought it...

      but by all means if she has to own it, why not pay twice as much? Leases are great for having new expensive cars cheaply ever couple years and as nice write offs. Your mom is a sucker it seems and should not be leasing cars until she understands them. Sucks the price of "education" is so high these days.
      My writing that $23,390 was her total payments was a mistake. She made $0 down payment and her monthly payments were $368. So that was just a little over $13,000 over a 3 year period.

      She leased the car because she didn't know how long she'd be keeping it. Previously she and her husband (step-dad) would always buy their cars with cash.
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      06-12-2019 10:57 AM #6
      What does her contract say?
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    9. Geriatric Member Hostile's Avatar
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      06-13-2019 10:55 AM #7
      Low mileage is irrelevant to the dealer. The buyout it what the buyout is. The lease contract they signed when they bought the car specifically says what the buyout is. You know it on day 1.

      Tell her to take the car to Carmax and get a quote for them. If Carmax offers more then the buyout then sell it to them. If not, then just turn it in to VW.
      iain

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