I’ve been doing some digging, but still have a few things unanswered given the particulars. This is also my first lease / buyback. Any insight is greatly appreciated.
2020 Volkswagen Tiguan S
35 month, 15k miles / year
lease is up mid Feb.
current mileage: ~57,000 (always intended to buy it out)
residual value ~$12,500
body damage to hatch for which I was quoted ~$1,000 fix from a couple shops
went through Lemon Law attorney over an issue with Apple CarPlay. I won’t bother with the specifics, but we ended up with an $8,500 payout, which was amazing given the nominal sacrifice.
My understanding is that if I pay off the RV + taxes and associated fees, they transfer title. End of story. I assume, given the excess mileage, the damage, the Lemon Law settlement, they won’t want to buy back the car anyway. And even if they would, I’m not interested in paying for those 12,000 extra miles.
QUESTIONS:
Is there anything I need to look out for when I head to the dealership? Are they going to try to slap me with extra fees / services? Or make it difficult in some other way?
Interest aside, how would the process differ if paying cash vs. loan from a credit union / bank?
I’m still unsure about which route to pursue. We’ve been saving for a downpayment on a home, but it’s clear, given our market, that isn’t happening anytime soon. Cash either goes to the car or to an index fund, but isn’t immediately important.
If it’s a lease and you are at the end of lease, they will take the car back, no questions. As long as it is running and doesn’t LOOK like you got hit by a truck. Welcome to Leases. Of course you would have to pay for the extra 12,000 in miles which if 20c is $2400. Is $2400 worth it for you to never see the car again?
Again, the only thing wrong with the car is that it lacks Apple CarPlay. Which we can deal with. The missus kind of loves the car. It’s been well maintained, but I’m starting to hear sounds that raise an eyebrow and have no interest in dealing with it down the line. Still, comparable mileage same model are going for about $4-5k more than the buyout.
It’s also a bit of a busy month. Shame on me for leaving it this long, but to properly decide on a new car (whether lease or buy), would be difficult to do over the next few weeks.
The other thing is the damage to the hatch panel.
I’m assuming they’d factor that into the return and charge me way more than the ~$1,000 I was quoted. Damage is strictly cosmetic. How does that work if we were to return the lease?
Blockquote Sometimes that’s the least worst option.
You have a point. I just hadn’t really thought about this as a problem. And haven’t had time lately to explore other options (my fault).
Perhaps it’d be worth going in to have them evaluate the car and see what trade in options are available? We have an absurdly low payment that I’d hope not to double, which seems to be the likely outcome with really any other lease. We were paying $260 / month and put $500 down.
Do you usually drive 20k miles a year? Or these 3 years were exception? Depending on that you can lease an EV now, return the Tiguan and pay the overage.
No, definitely more than that. Wife backed slowly into one of those elevated wooden garage storage bins behind a parking spot. Put a nice bumpy horizontal dent about 2/3 the length of the car beneath the back windshield. Again, 2 shops quoted about ~$1,000 to fix. I’m assuming VW will ask for triple that.
Do you usually drive 20k miles a year? Or these 3 years were exception? Depending on that you can lease an EV now, return the Tiguan and pay the overage.
Atypical. We will certainly be close to 12-15k with this car the next few years. If not 10-12k.
Which EVs are you thinking of? Particularly good deals out there? I’ve been asleep on the market for the past 6 months at least. No idea where to start.
We live in San Diego. Charging infrastructure is pretty good and could probably get away with supercharging when needed for a while. But we also have a garage (in our rental ADU) where we could install a charger, but I suspect it will need a new electrical panel to accommodate it. As much as I want an electric, the cost and hassle of setting up home charging in a house we don’t own isn’t exactly appealing.
I checked with one mobile guy. He said it was beyond his pay grade, but maybe worth another consult. The paint damage is surface level. If a good buffer wouldn’t take it out entirely, it’d make it good enough. Honestly, because of the particular form of the damage, it’s hardly noticeable. I’ve told friends about it and they answer, “Wait… where?”
And that still equates to at least a $4,500 out of pocket (not including the dent repair). The monthly + not paying for gas is super appealing. I know nothing about the car though. Thoughts?
If you can finance it on your own ‘blank check’ style, just buy it directly from VW Credit and save yourself the nearly $1000 on fees the dealer might charge to process the buyout.
I did that with our 2019 Tiguan. Send in the forms and a cashiers check.
Another way to look at it is if OP is already on the hook for $2400 in overages, $1000 in damage and $395 disposition, it’s only another $8200 (plus the sales tax) to just buy the whole vehicle and keep running it as is.
I’d probably just buy it and run it into the ground
This is what I was thinking. Wife loves the car already, no hassle, eliminate a car payment, live with the dent, etc. Perhaps when I have more free time later this year, I can look into selling it and hopefully recoup the cost of the purchase. Then start from square 1.
That said, I’m not opposed to a different option if an attractive one arises.
EDIT: Didn’t realize you’d made 2 separate replies
Thing about it is that the lemon has only to do with CarPlay (in fact, Android still works. It’s just the Apple that won’t connect.) I’m sure there’s someone out there willing to take that hit.
And there is no accident on Carfax. She reversed into a piece of wood and it made a (albeit long) superficial dent. Unless a shop is required to report it if/when they make the fix, I don’t see how it’d show up. Note: I have no intention to deceive any future buyer about any work done, were I to do it.
So, either pay what I assume will be ~$5k in fees to return it, or pay $12,500 + tax to run it into the ground. Sound about right?
Your lemon law settlement shouldn’t show anything on CF since you got a cash settlement and not a buyback. I think it’s a lot of car for sub $15k tax inc.
