J-McDonald

The lease on our 1999 VW Passat will be ending in July and we are considering buying the car. I called and spoke with VW Credit Corp. (US) and obtained their buyout number as of the end of the lease. Although their quoted buyout number is more than the fair market value of the car, we really like the car and would like to buy it.

The VW Credit Corp. rep said that they do not negotiate the buyout on their leases - it's take it or leave it.

I read the posts on the 993 board about negotiating buyouts on Porsches. The consensus seemed to be that certain companies negotiate and others don't, independent leasing companies are less likely to negotiate than car company affiliate leasing companies, and the maximum leverage point for negotiations is immediately prior to lease expiration.

Please let me know if you have negotiated a lease buyout with VW Credit Corp (US). If you'd rather respond offline, please e-mail me at jjmcdonald@hhlaw.com.

Also, does anyone know of a good online Volkswagen message board (where I can ask the same question)?

Thanks very much for all replies.

John Murray

I have been selling Audi's and Porsches for about 3 years. Audi's leasing and financing company is VW Credit, your VW leasing company. In the 3 years I have never seen VW credit give anyone a break. There is another option for you. Request the buyout as of today. It is higher, but you can start paying for a car you own rather than leasing till your lease matures, then start financing. I am sure you did not pay sticker price for the car, right? Well, the lease end residual(value) is based on a percentage of MSRP, not your purchase price. So think of it as a bit of a bonus, you got a discount in the beginning.

Another way to look at it:
Do you like the car? Can you afford the payments? If yes, then you got a good deal. (Of course, that is the salesman in me talking)

A tactic to try with VW Credit: Tell them to negotiate with you or you will buy car anyways, but finance with some other bank. See what happens. Believe me, they want your business.

Good Luck.

BRUCE

A good thing to remind the bank is how much they are going to loose when they take your car to the auction. I would find out what your car is selling for at the auction and also mention all the expense and effort it takes to run a car at the sale. If you want I have access to auction info and can provide exact numbers.

Tom 97 C2-S, So. Cal.

J-
The first thing that comes to mind is the true-ism that you never go into a lease with an intention to buy.

As you stated, VW Credit wants more than the FMV. Beleive me, just before the day of reckoning comes (End of Lease)they will negotiate down. Happened on my Jeep (2), MB, BMW (2), and brother in laws XKR.

Of all the cars mentioned, our first lease,'92 Jeep was a WINNER. EOL cost $8,500, FMV $11,500. I bought it and sold to a family member for $9k. I thought I could not loose. Boy was I surprised after my second Jeep 96', after the Expedition hit the scene, no one wanted a little Jeep. EOL $19,500 FMV $13,000. I gladly handed back the keys.

Bruce is right in that ALL finance companies recognize a cost burden to dispose of EOL cars. You should negotiate in the last 30 days before your EOL.

FYI- Tell your local VW dealer you want another Passat. We got a great deal through our dealer and B of A on our second 740. They killed BMW financing.

Regards,
Tom
02' 996C4 Cab

DonW-Cape Cod

One of the problems in negotiating a lease buy-out is actually finding the person who can make the decision. In many cases the dealer cannot speak for the leaseholder even if the lease is by the auto manufacturer.

Getting out of a lease is also tough even when you're leasing or buying another same kind from the same dealer. I've been at a dealership and overhead a buyer agreeing to build the balance of his lease into the overall lease or loan on his new car. How bad is that!

Tom N

Have you asked your dealer about buying the car from VW credit? They probably can buy the car at FMV, since that may happen anyway if you turn the car in to that dealer.

Perhaps they would resell it to you for a modest markup, and perhaps as a CPO (certified preowned) with additional warranty.

This worked for me on a 99 Range Rover that BMW Financial would not sell to the lessee for less than the stated residual value, but which the dealer bought for FMV($6000 less).

I paid a $2000 mark up and got an extended CPO warranty, and kept a low mileage vehicle I wanted to keep. All in all I saved another $4000 leasing then buying versus having bought the car when new.

Ed Newman

I tried to negotiate with VWC on my Boxster. The EOL buyout was $46,000 and the FMV around $29,000. The bottom line is that they do not negotiate. The best option you have for an undervalue car is to 'chase it'. This means literally getting in you other car and following the rig when it is picked up to the auction site and bidding on the car. Your dealer would likely have to be involved since you may need to be a dealer at the auction. For me it was not worth it on the Boxster, but one of the locals did it on a 993 TT a few years ago and made out quite well.

Mug

If you have the cash, you can probably have a family member or friend purchase the vehicle for thousands less. The dealer will first have to purchase the vehicle from the lease company, then turn around and sell it to your friend/family member. Once the title has been received from the DMV, your friend/family member can just transfer the title to you.

J-McDonald

Thanks very much for the replies!