You must really want out of this car to dump it + pay 11k for that privilege. I get that it’s cheaper that way than paying the 25k in remaining payments, but that lease cost you around 3k/month to drive it 4 months (and that’s not counting the extra $$$ Volkswagen wants). To each their own though.
10k negative equity on GLI - VW Credit wants extra 7k to sell to dealership. How do I sell this car?
Numbers actually close enough with the additional 7K VW wants regardless of who purchases the car.
OP’s liability = $25K+$13K=$38 k
Carmax offer = 19K
Difference $38K-$19K=$19K which is close enough to OPs 11K budget plus $7K VW wants.
This is really confusing. Where did the $11k number come from?
ANYWAY, what about a transfer? I have no idea what your payments are or how many months, but does offering someone $11k cash and they take over your lease make it at all attractive to someone?
Can’t transfer a VW lease without remaining liable on the lease.
As mentioned, VW requires the original leaseholder stay on the lease, so I’d still be liable if they took my 11k cash and ran with it. 11k is my residual + remaining payments. VW credit charges dealerships more to purchase vehicles.
Yeah, expensive lesson. I’m going back to school and my income will increase, but I’d rather minimize my monthly expenses and this vehicle is purely a luxury at this point. The money i’d save on registration + insurance makes biting the bullet worth it for me.
Don’t get me wrong - I don’t want to spend this much money, but it’s either that or stick it out for another 3.75 years, and, well, no thanks.
It should have been 11k. VW wants more to pay the car off because the check is coming from a dealership as opposed to from my bank account.
I am still confused. You cant buy car for residual till the end of lease.
Looks Like OP is mixing up 2 different numbers
Remaining payments $25,196
Carmax offering $19k
Negative Equity: $6196
I dont know where the 11k is. OP is prob thinking his remaining payout is residual + 6k which is ($13k +6k) which adds up to $19k
Try Vroom/Carvana → They might offer a bit higher to minimize your losses
Volkswagen, Audi, and some others will not always sell your car for residual plus remaining payments to anyone but you. They can choose to offer a different price to a third party dealer (eg CarMax, caravana etc).
I’ve heard of this happening in the past.
It was explained to me that payoff = residual + remaining lease payments. The residual apparently is only offered to me. If the car is sold to anyone else, they want an additional 7k. So it looks like my only option is trying to take out a loan for 19k, pairing it with my 11k cash and buying the car outright from VW to end my lease, then selling the car to a dealership (Carmax, etc) and paying off the loan. I’ve recently listed it on autotrader, so we’ll see what happens. I imagine encountering some apprehension at my situation. (Write me a check so I can pay the car off & get the title, then i’ll Transfer you the title). But then again, that may happen more than I realize.
But you said you have $25k in payments and $13k residual. How does equal $11k cash and $19k loan?
You can only buy it out for residual AFTER paying off your remaining payments.
To get an accurate payoff quote, log in to your account at vwcredit.com, go to menu > payoff quote and you can get an instant quote valid for 10 days that will show the true amount it would cost you.
It still won’t be valid if you sell to a third party, because VW will still make up some absurd number for them to pay.
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So let me get this straight if you have $25,196.64 left in payments and I’m going to assume it’s originally a 36 month lease because you would be stupid to sign a 48 month lease, that would make your payment $787.39 a month for the 32 months left. I see why you want to get out of this lease, you got HOSED! I really hope I’m wrong but even a 48 month lease would be $572.65 a month with 44 months remaining. Also crazy.
Edit: please tell me you did put any money down when you signed the lease?
Looks like a 48 month lease with negative equity included.
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VW are never going to allow anyone to buy that vehicle from them because you owe them $25k. Unless someone pays them the $13k + $25k = $38k (and no one is going to for a vehicle worth $19k). You effectively asked VW to take a $19k hit on a car that they have you legally obligated to pay $25k for.
You need to stop making horrific financial decisions, and learn from the mistakes you’ve made previously. Getting a loan out to buy yourself out of this will just be another terrible decision as you’ll have the massive debt but no car.
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Are you liquid for 11K? This is not a bank loan of some type?
If that is the case, I would put it in the bank, and draw monthly to pay the lease. That covers you for the next 19-20 months. If it is another loan, seriously just stop. You are burying yourself with negative equity. Pay off the lease, with a lesson learned.
I would also consider getting rid of the car you own, if you keep the lease. Use that cash to draw against and pay the lease down as well.
The other option is essentially lighting 19K on fire. Nothing in return but a payment. That is just silly. For 6K more you are getting the use of the car for 44 months. And now is probably as good of a time as any to stop the negative equity cycle.
Wow. Just wow.
A new winner?
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As mentioned before, see what vroom and carvana have to offer.
Unless the whole VW not accepting the price thing comes back into play?