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Old 05-30-2014, 11:06 AM   #1
Brunkel
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Best time to buy out a lease ('13)

I leased my 2013 GTI back in October of 2012. It is a 42 month lease but I intend to buy...the lease was just so I could get in the GTI and have a manageable monthly payment for 2013. I'm wondering when the best time to buy out is? Do I finish all my lease payments or do I buy as soon as possible? I'm basically looking for what scenario is going to give me the best negotiating power on the residual value.
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Old 05-30-2014, 11:34 AM   #2
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I leased my '12 for 36 months (1 year left now) out of college and I intend on buying it out too. A friend (who owns a leasing brokerage) told me to wait until the end of the lease when VW offers for you to buy the car. Call them up and start to negotiate...the longer the MK7 is available, the lower you can drive VW for the buyout price.
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Old 05-30-2014, 12:18 PM   #3
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I can't say I've ever heard of anyone getting a discount in the middle of the lease on the current buyout price. Why would VW even do that? They've locked you into a financial contract for 42 months. Why give up that revenue by discounting the current buyout price?

Likely you'll only be able to negotiate a discounted value at lease end.
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Old 05-30-2014, 03:49 PM   #4
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Yeah that makes much better sense now. I hope I can negotiate a good buy out price...I wasn't on my game when signing the initial contract and later felt robbed a bit.

Would the fact that my car is modded affect negotiating firepower when I buy it out? I mean, I if I returned the car I'd obviously part it out, but I don't know if the dealer seeing all my mods would help negotiating or not.
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Old 05-30-2014, 08:58 PM   #5
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You won't be negotiating the buyout with the dealer, you'll be negotiating directly with VW Credit. The only involvement the dealer has is providing a lease turn in inspection for VW Credit. Or if you plan on leasing a new car or buying a new car from the dealer, then they may work a deal on the lease turn in as if it was a trade-in.

So you won't even be at the dealer when you start negotiating, thus they have no reason to know about any mods you've made, you'll just be calling VW Credit and talking to them.

If you can't arrive at an agreement you like, then you'll be turning in the car. At that point you need to return the car to stock condition, otherwise you won't have a pleasant inspection.
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Old 06-28-2014, 05:37 PM   #6
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Is it possible to also negotiate extended warranty with VWoA at lease end?
Took a hard look at MK7 and what it costs (to me). I'm keeping my MK6.
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Old 06-30-2014, 02:31 PM   #7
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Is it possible to also negotiate extended warranty with VWoA at lease end?
Took a hard look at MK7 and what it costs (to me). I'm keeping my MK6.
Anything is negotiable. You can certainly bring it up. Worst they can do is say no.
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Old 08-07-2014, 05:21 PM   #8
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So I talked both with VW credit as well as my dealer about buying out lease options.

VW credit is very black and white and what they see on the contract is how it is. So, whatever you owe left on the lease + the residual value set by VW on the date of purchase is what you pay to buy out the car. There is also some like $350 fee or something lame like that. There's no negotiations, and it's a very simple process. You can even get a "pay off quote" online anytime by signing in to your account.

My dealer said pretty much the same thing. I was a little set back though b/c I recall them saying that the residual value is negotiable in the end if you decide to buy out. What he did say though, is that if I decide to trade in the lease for a newer 2015/16 GTI that the trade in value is negotiable.

Also, if you buy out in the end, it does not matter what your mileage is...even if it is over the terms of the lease. There will not be a fine for that, unless you turn the car (don't decide to buy) in with miles over the limit. Good peace of mind.

So, what I've determined from this is that it does not matter what time you your lease out. To VW or the dealer it will be the same amount of money in their pockets. However, if you need to take out a bank loan to buy out the vehicle (which I would) you have to look at the amount of interest you'd be paying on the remaining balance of the car now as opposed to the end of the lease, whenever that is. You can also compare to your current payment and do all different variations to figure out the best time for you. I'll do all this for my finances eventually but right now I'm fine with just paying the lease as is!
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Old 08-07-2014, 08:44 PM   #9
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Quote:
Originally Posted by Brunkel View Post
So I talked both with VW credit as well as my dealer about buying out lease options.

VW credit is very black and white and what they see on the contract is how it is. So, whatever you owe left on the lease + the residual value set by VW on the date of purchase is what you pay to buy out the car. There is also some like $350 fee or something lame like that. There's no negotiations, and it's a very simple process. You can even get a "pay off quote" online anytime by signing in to your account.

My dealer said pretty much the same thing. I was a little set back though b/c I recall them saying that the residual value is negotiable in the end if you decide to buy out. What he did say though, is that if I decide to trade in the lease for a newer 2015/16 GTI that the trade in value is negotiable.

Also, if you buy out in the end, it does not matter what your mileage is...even if it is over the terms of the lease. There will not be a fine for that, unless you turn the car (don't decide to buy) in with miles over the limit. Good peace of mind.

So, what I've determined from this is that it does not matter what time you your lease out. To VW or the dealer it will be the same amount of money in their pockets. However, if you need to take out a bank loan to buy out the vehicle (which I would) you have to look at the amount of interest you'd be paying on the remaining balance of the car now as opposed to the end of the lease, whenever that is. You can also compare to your current payment and do all different variations to figure out the best time for you. I'll do all this for my finances eventually but right now I'm fine with just paying the lease as is!
Cool info. I'm leasing as well and have a handful of mods on my car. I've figured that buying it out at the end - next November - may be the best option. I only worry about longevity and everything.
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Old 08-08-2014, 08:23 PM   #10
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When you lease a car now, you sign a contract for the residual. Your chance to negotiate is when you first lease the car, in the dealership before you take it home. If you leased the car for something around $29k, you owe the entirety of that at the end of the lease if you choose to buy it out.

You must also pay a $350 disposition fee, tax, tag, and title.

Some dealers also want something like $950-1k to perform an inspection and do all the paperwork for you. I had to search around for a dealer that didn't want something outrageous like that.
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Old 08-08-2014, 09:51 PM   #11
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When you lease a car now, you sign a contract for the residual. Your chance to negotiate is when you first lease the car, in the dealership before you take it home. If you leased the car for something around $29k, you owe the entirety of that at the end of the lease if you choose to buy it out.

You must also pay a $350 disposition fee, tax, tag, and title.

Some dealers also want something like $950-1k to perform an inspection and do all the paperwork for you. I had to search around for a dealer that didn't want something outrageous like that.
This is true unless your car is worth less than your residual. In most cases the lien holder will negotiate down since they don't want a car that they are going to lose money selling.

Also if your buying out your lease you don't need any sort of inspection done at the end, you just send them a check and go on your merry way.
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Old 08-08-2014, 09:55 PM   #12
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This is true unless your car is worth less than your residual. In most cases the lien holder will negotiate down since they don't want a car that they are going to lose money selling.

Also if your buying out your lease you don't need any sort of inspection done at the end, you just send them a check and go on your merry way.

Vw credit sounded like that was not even a possibility. Whatever the paper says is what it is was my impression.
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Old 08-09-2014, 12:40 AM   #13
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Vw credit sounded like that was not even a possibility. Whatever the paper says is what it is was my impression.
Things have changed, you have to use a dealership to close on your lease. You cannot simply cut VW a check for the residual and the TTT.
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