Need car buying advice for a friend trying to get out of a lease

"deekster_caddy" (deekster_caddy)
06/23/2016 at 13:34 • Filed to: None

Paging Tom McParland and Steve Lehto!!!

I have a friend trying to get out of a lease early. Two kids is about to turn into 4, so she’s trying to get out of her 2014 Jetta 36 month lease a year and a half early and buy a minivan. Toyota dealers are telling her to pay off her lease in full then come back and talk to them. “Nobody wants VWs because of the recalls.” Sounds like pushy obnoxious sales tactics to me, any advice I can pass along? She’s gotten this from multiple dealerships now.

I mean, I know you are at a disadvantage because you have a lease, but isn’t it somewhat normal for dealers to take care of a lease buyout? I know they don’t _have_ to do a buyout, are they just twisting VW owners because they can?

(anyone else can answer too)

DISCUSSION (18)

Party-vi > deekster_caddy
06/23/2016 at 13:39

Buy a Routan and then cry.

deekster_caddy > Party-vi
06/23/2016 at 13:44

It may come to that...

deekster_caddy > Party-vi
06/23/2016 at 13:51

Oh, no new Routans. Cry is right. She only wants new, with 4 kids that leaves Honda and Toyota.

E92M3 > deekster_caddy
06/23/2016 at 13:53

That’s typical. They don’t want that car to sell on their used lot. Their only option is to buyout the whole car (remaining lease payments, and residual), and then resell it or send it to auction. That takes time to process, and get the title in the dealerships name. Why would they want a car sitting on the lot for 45 days, when they could have 4 or 5 cars parked in the same spot, and have them all sold within the same 45 day window?

Party-vi > deekster_caddy
06/23/2016 at 13:54

Well no, they’re all going to be old stock or used.

jkm7680 > deekster_caddy
06/23/2016 at 13:58

“Nobody wants VWs because of the recalls.”

Believe it or not, they aren’t doing that bad.

deekster_caddy > jkm7680
06/23/2016 at 14:05

That’s in quotes because it’s what the dealer told her. Recalls? The only issues I’m aware of is the Takata airbags and the diesels. Nothing to do with her car (maybe the airbag but it would be fixed). From the airbag perspective nobody would want any used car right now...

MontegoMan562 is a Capri RS Owner > deekster_caddy
06/23/2016 at 14:12

*And Dodge/Chrysler*

They still make a good van and the new Pacifica looks nice.

petebmwm > deekster_caddy
06/23/2016 at 14:14

Have the car appraised as a trade in, the car holds a value, and there is a payoff, there’s a difference similar to equity or out of equity, depending on the value vs payoff you get from vw, typicaly residual... so for example, have your friend call vw and get a dealer payoff for inventory, then get the appraised value, and do the math, thats what she needs to come up with to wash her hands of it, or roll it into the new car.

deekster_caddy > MontegoMan562 is a Capri RS Owner
06/23/2016 at 14:16

I agree but she has Honda Toyota stuck in her head. I’m trying to talk her out of it...

jariten1781 > deekster_caddy
06/23/2016 at 14:17

I've seen it go both ways. If the lease buyout is more than they'd list the car for they'd roll that into her purchase. If it's significantly more (which is what it sounds like they're saying) it'd make the whole deal unpalatable for the customer so they want to divorce the sale from the buyout so they're not blamed when she has to take a 42k loan on a 30k minivan (or whatever the numbers are).

Party-vi > deekster_caddy
06/23/2016 at 14:23

Tell her Dodge/Chrysler invented the minivan and Honda/Toyota are busy playing catch-up. Also, Jim Gaffigan.

MontegoMan562 is a Capri RS Owner > deekster_caddy
06/23/2016 at 14:32

I do hope you convince her to at least go check them out, they’re good vehicles.

Like Party-vi said, they invented it and they’ve been pretty much at the top of the Mini-Van game ever since.

deekster_caddy > deekster_caddy
06/23/2016 at 15:48

Update from a Honda dealer about buying out the lease:

“Yes, we do it all the time for other manufacturers but it’s illegal for VW.”

HUH?

thatsmr > deekster_caddy
06/23/2016 at 21:29

People trade out of leases all the time. One might need cash down to put the carry in order (the negative equity to roll over). What your friend needs if without money down is to select a vehicle with big rebates to help get the structure in line. She must also be prepared to be buried in this vehicle for most of the loan.

Reece-Current Stinger GT owner > deekster_caddy
06/23/2016 at 21:30

Working at a dealer group with a VW arm I can tell you that most dealers really don’t want to buy out a VW lease right now. The values are way below the residual, so there is no benefit to picking up a lease early for a customer. If someone does, they are just going to bury the negative equity into the next car your buddy buys.

deekster_caddy > Reece-Current Stinger GT owner
06/23/2016 at 22:12

Thanks. We did some math and she’s just going to have to eat some of the loan at this point with a higher payment on the next van. She was getting some weird tales though.

Reece-Current Stinger GT owner > deekster_caddy
06/24/2016 at 10:04

Some dealers can be super sketchy when it comes to lease buyouts because half the time they honestly just don’t want to do the extra work on their part, so they just shaft the customer.