# All VW Lease Customers Read This



## IchBinDarren (Nov 5, 2005)

It is possible that you already know this, but MANY VW lease customers do not know this important information. 

VW does something with their leases that is very unusual in the leasing business. If you decide to trade in the car or sell the car within the last 90 days of the lease, the new buyer will have to pay "retail value" for the car. This "retail value" figure for the car is often 50% higher than the lease residual. Every other lease deal can be traded in at anytime, and the bank will be happy as long as the lease residual is paid off. So in essence, trading in a lease is no different than trading in a finance purchased vehicle. 

I lost my respect for Volkswagen Credit after hearing about this. its just another way they take advantage of their customers. I refuse to deal with VW anymore because of their bad leasing practices, it shows that the company has no integrity.


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## DUTCHMANia (Apr 7, 2003)

GTFO


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## AlexsVR6 (Jul 24, 2007)

Are you saying that even before the lease agreement is up I can take it back to VW and trade up?


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## Niks01turbo (Jul 12, 2011)

Then drive your ford and beamer all over the over taxed and over regulated roads of California. The rest of us will not care.


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## Jedidub (Oct 6, 2010)

I don't get what you're saying I traded my 2008 passat wagon in (lease) 2 months early I rolled those payments into a 2011 CC R-line. A month later I received a check from VW leasing for $1957.38 after they sold the passat at retail I see nothing wrong with how they do business I was not expecting a check. I called the leasing dept. and asked what the hell this check was for they explained that because the vehicle was so well kept, and was under mileage they split the profit with me. The leasing dept. explained this is common practice when you replace 1 VW lease with another. In my opinion VW runs the most honest lease possible. I would have never known what they sold my passat for they didnt have to give me any part of their profit. That check covered 5 lease payments on the new CC and because I leased another VW they waived the lease return fee another $400 savings. This is a win+win situation. This is my 3rd VW lease, and it just seems well worth it to me. Sorry you feel different good luck leasing somewhere else..... 


And no I don't work for VW I'm a cop.


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## GTINC (Jan 28, 2005)

IchBinDarren said:


> .....after *hearing* about this......


 So you have not experienced this, just heard about it from some source?  

Would seem all the process is spelled out in the original agreement. Why not read the agreement?


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## bluesbrothers (Sep 6, 2002)

GTINC said:


> Why not read the agreement?


 cause that would make sense.


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## 2VWatatime (Aug 4, 2006)

IchBinDarren said:


> It is possible that you already know this, but MANY VW lease customers do not know this important information.


 Ok, but really most customers don't know everything in their lease or other agreements... 



IchBinDarren said:


> _VW does something with their leases that is very unusual in the leasing business._ If you decide to trade in the car or sell the car within the last 90 days of the lease, the new buyer will have to pay "retail value" for the car.


 Proof? Oh, that's right - you don't have any, bc there isn't any. 
As to VWC - _All _closed end leases in the US (this is regulated under Federal law) give the lease holder two options - selling the car to the lessee for the agreed upon price (residual), or, if this offer is not taken, selling the car to _any other party _for _whatever they can get for it_. VWC, like most captive lenders, makes certain offers to entice lessees to stick with the brand. 



IchBinDarren said:


> This "retail value" figure for the car is often 50% higher than the lease residual.


 And sometimes (in the case of later high demand specialty cars), "retail" may be far more than 50% of the residual. Again, what's your point? 



IchBinDarren said:


> Every other lease deal can be traded in at anytime, and the bank will be happy as long as the lease residual is paid off.


 And VWC is no different. Lessee trades in car, contract stipulations are followed, and the deal is done. Not rocket science. 



IchBinDarren said:


> So in essence, trading in a lease is no different than trading in a finance purchased vehicle.


 To a point, yes. Again you seem to be missing the point that in a trade in, _the current Lessee is agreeing to buy out the car for the residual._ 



IchBinDarren said:


> I lost my respect for Volkswagen Credit after hearing about this. its just another way they take advantage of their customers. I refuse to deal with VW anymore because of their bad leasing practices, it shows that the company has no integrity.


 ??? Don't let the door hit ya where.... :wave:


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## IchBinDarren (Nov 5, 2005)

I have been in this business for a long time, and I have NEVER heard of anything like this in the leasing market, except for VW. It shows that their business strategy is thinking short term, rather than build a long-distance business relationship. 

The only purpose of my post is to inform those who are considering a VW lease. If you have already leased your car, then I expect that you will know this. But VW wont tell you this until you are signing the contract, so I assume it is surprising for some customers. 

I just love the level of respect and maturity on this forum. 

peace out


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## IchBinDarren (Nov 5, 2005)

2VWatatime said:


> Ok, but really most customers don't know everything in their lease or other agreements...
> 
> 
> Proof? Oh, that's right - you don't have any, bc there isn't any.
> ...


 Customers need to read their lease agreements, but I assume they are surprised to see this stipulation on the contract. I would rather have people know this information before considering a lease. 

1) Proof? Im in the business, Ive seen problems with this on several occasions, and I have spoken with VW credit, and dealerships on multiple occasions. 

2) You are talking about specialty cars, VW's are not specialty cars. They are mass produced commuter cars and these types of vehicles are never worth 50% more than the residual value during lease maturity (except for TDI's during times of $5 gallon fuel prices). We are not talking about collector cars here, so what is your point?


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## IchBinDarren (Nov 5, 2005)

DUTCHMANia said:


> GTFO


 Dont you just love acronyms? Its a great way to show immaturity without violating the forum user contract.


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## IchBinDarren (Nov 5, 2005)

AlexsVR6 said:


> Are you saying that even before the lease agreement is up I can take it back to VW and trade up?


 You cannot sell the car to a third party during the last 90 days, but you made traded it in for another VW during that time. VW just isnt happy about loosing a customer, so they will overlook the "retail" price if you sell the car to VW.


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## gsprobe (Jan 29, 2006)

*No*

You may buy the car out at any time for agreed upon residual price plus the total of all remaining payments. 90 days is 3 payments, so add that to buyout. Your CLOSED END LEASE guarantees that your contracts buyout amount DOES NOT FLUCTUATE. Your post is very misleading. Or simply very incorrect.


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## Niks01turbo (Jul 12, 2011)

IchBinDarren said:


> Dont you just love acronyms? Its a great way to show immaturity without violating the forum user contract.


 Maturity????? Is it mature to PM a member and chastise them about their post. Check your own maturity and stop getting so mad about noone agreeing with your thread. Did he PM anybody else and tell them to stop?? Weirdo


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## DUTCHMANia (Apr 7, 2003)

IchBinDarren said:


> Dont you just love acronyms? Its a great way to show immaturity without violating the forum user contract.


 how's this? : GET THE **** OUT!


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## 2VWatatime (Aug 4, 2006)

IchBinDarren said:


> Customers need to read their lease agreements, but I assume they are surprised to see this stipulation on the contract. I would rather have people know this information before considering a lease.


 What "stipulation" beyond that of VWC taking right of refusal on the conclusion? You claim to have "been in the business" for "years", but you've never witnessed this from others? Do you have proof to back up your claim? 



IchBinDarren said:


> 2) You are talking about specialty cars, VW's are not specialty cars. They are mass produced commuter cars and these types of vehicles are never worth 50% more than the residual value during lease maturity (except for TDI's during times of $5 gallon fuel prices). We are not talking about collector cars here, so what is your point?


 You're the one who brought up the 50% figure


IchBinDarren said:


> "retail value" figure for the car is often 50% higher than the lease residual


. I'm simply pointing out that lease residual figures may have little to no relationship to the then _current_ retail value for any given auto. 

Personal example - my wife caught an early look at the Toyota Solara 'vert. At the time, Toyota hadn't sold a similar vehicle in the US for some time, so TMAC rolled their initial figures into the coupe numbers. We surprised the dealer's F&I person w/quick agreement to lease - and wound up @ 36 months having a residual almost $_1,000 below average wholesale_. Naturally, we bought it out - but only after TMAC vetted our bank & made surprise phone calls to both me & my wife, all w/the intent to ensure that we were indeed buying the car - not arranging a 3rd party sale in the last 90 days. 

Why do that? Simple - TMAC realized (late) that they had blown the residual figures, and were simply enforcing every step of their contract, including the rather standard "no 3rd party @ last 90 days". FWIW, had we a Solara coupe, w/residual at or above wholesale, TMAC would not have (and did not, in other experience) enforce the contract, as they would be making a profit regardless of the buyer. 

VW (along w/pretty much everyone else) is simply observing the used market - and smaller, better MPG used cars are holding their value very, very well - to the point that many residuals (set 4+ years ago) are hopelessly undervalued, and lessees are buying out. 

You are somehow trying to portray a very common & regular function of leasing as disreputable, and tying that to VW. I hope that my real world experience can shed a light for you....


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## Jedidub (Oct 6, 2010)

gsprobe said:


> You may buy the car out at any time for agreed upon residual price plus the total of all remaining payments. 90 days is 3 payments, so add that to buyout. Your CLOSED END LEASE guarantees that your contracts buyout amount DOES NOT FLUCTUATE. Your post is very misleading. Or simply very incorrect.


This/\


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## thepuppiesonfire (Oct 28, 2010)

only morons lease a car. so who cares


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## GTI-Corrado (Dec 9, 2010)

IchBinDarren said:


> It is possible that you already know this, but MANY VW lease customers do not know this important information.
> 
> VW does something with their leases that is very unusual in the leasing business. If you decide to trade in the car or sell the car within the last 90 days of the lease, the new buyer will have to pay "retail value" for the car. This "retail value" figure for the car is often 50% higher than the lease residual. Every other lease deal can be traded in at anytime, and the bank will be happy as long as the lease residual is paid off. So in essence, trading in a lease is no different than trading in a finance purchased vehicle.
> 
> I lost my respect for Volkswagen Credit after hearing about this. its just another way they take advantage of their customers. I refuse to deal with VW anymore because of their bad leasing practices, it shows that the company has no integrity.


I respectfully disagree. I just got off my lease in may. I paid the balance.. I think it mightbe a shady dealer.. And as we all know they do exist!


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## GTI-Corrado (Dec 9, 2010)

Let me clarify I just paid the residual..


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## Js16v (Jul 13, 2011)

*pepeople who want something for nothing...mooches*

What is wrong with VCI charging "Retail Value" for their cars?
If it was your car and you could sell it for $15k would you sell it to me for $10k? 
You see, VW is in the bussiness of building and leasing
cars for a profit, they dont build them and lease them so you can turn a profit. 
that wouldnt make much sence. :screwy:


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