As @max_g said, if the dealer makes a killing on buying the old car the poster isn’t getting a cut. So the dealer agreement to pay X for the car, doesn’t matter if buyout is more or less.
Because the payoff listed on the contract (I think) is not the payoff that the OP was originally contracted for in his trade-in lease. The “buyout” the dealer gets is lower than that amount (or should be at least). Hence, the two parties made a contract stating that the dealer is only obligated to pay a certain amount to the bank to obtain proper title. If that amount was higher then OP owes (per the contract).
Its not like the two parties signed a contract that included a certain payoff (the original one per the contract) and then the dealer decided to buy it for the “buyout” amount from VW as a separate transaction. The dealer used the “buyout” amount on the contract (which was lower than the payoff the OP would have had to make under his original lease) and thus the OP benefited from that lower amount. Hence, he would owe the difference.
See, if the dealer had used the real payoff amount that the OP owed per the original lease then he would have been super buried (because as he said he was like 30K miles over and his car wouldn’t be worth even near the residual plus one payment). But in the contract he got, I don’t think he had any negative equity (though he would have to confirm 0 we still haven’t seen the contract) because they used the dealer’s amount. So, it was a win-win. However, the payoff changed for some reason (that we still don’t know because OP has not gotten that answer from the dealer).
In any case, the OP has likely made out like a bandit (even if he pays the $1,300, which I doubt he will do quietly) because he evaded having to pay a $6,000 penalty (plus whatever wear and ear may have existed) or the negative equity he would have actually had, if they had used his payoff per the trade-in lease contract.
So to answer your question in simple terms, if he was using the payoff he owed per the contract, this probably wouldn’t be an issue. Since he used the dealers “buyout” as the payoff he benefited and the dealer is just going after the difference of the benefit they thought they were getting under the lower “buyout” amount.
Lol. I feel like I just talked in circles and probably didn’t make any sense…
I just realized I gave a super long answer when I didn’t really get your question I think. If this is your questions then it’s a bad question.
I agree to buy your car for $10,000 and there is no payoff then the deal is done. But if I agree to buy your car for $10,000 and you owe $11,000 to the bank, you owe me $1,000. If you $9,000 I owe you only $1,000. That’s car buying 101. The payoff is of utmost importance in this scenario. Did I understand your point correctly?
The way I see it, per post, the dealer got screwed by VW Credit that asked for more money than initially quoted. So they are trying to pass the loss to Palestar.
Now one would think that a deal like this moves forward on the precondition that the dealer takes the trade-in with the agreed price. If the OP knew from the beginning that he is liable for additional $1300, he probably would have not entered the contract.
You mean to tell me that if the reverse was true and the payoff was less, Timmons would call him and hand him a check? Seriously doubt it
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No, I would owe $1,000 to the bank. Not to the dealer.
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Now you’re getting it. Now, if I (the dealer) paid the payoff amount to the bank on your behalf (so I can get the title), who do you owe the money to?
I don’t think anyone here disagrees with that. The payoff went up, we suspect, because the dealer didn’t payoff within 10 days. And if these are the facts, then I suggested earlier that OP insist he not pay because the increase was due to their dragging their feet on paying the car off. However, technically, legally, the contract says that if the payoff is above the amount on the contract, OP agrees to pay the difference. We are still oping to get all the details of how it all went down.
Yes, correct. But the agreed price and the payoff amount are two different things. The agreed upon price isn’t changing, the payoff amount is. See posts above.
I think we can all agree on this. And that is his argument. That’s why we want him to get the facts from the dealer.
100%, yes. Timmons is contractually obligated to payoff the amount on the contract. If the money went to the bank, then the bank would refund the money. If the payoff were less, Timmons would send him a check. They might try to be sneaky bastards about it but if OP were to find out, then he could demand it and be completely within his rights. I think people can chime in with personal experiences (some may have above already) where they have gotten a refund. In fact i think it was chevysalesgirl that said she got like $2K back from Audi.
Nah, man. Seriously, they would.
just log in to your vw online account. you should be able to track the final payment that was made.
Did you bother reading the whole thread?
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honestly i got through maybe half and i gave up because of stupid posts…did i end up doing the same? lol
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It is in a loop now. Every new reader posts the same questions that have been asked at least twice 
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i don’t see any mentioning of an online account? sure it’s been traded in but if he had online access i would think he should be able to see the final payment being made
Try harder lol
Been suggested by a good samaritan and answered by OP
I can’t let this pun go unnoticed, well done
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found it…lol
okay im pretty sure this hasn’t been brought up but does vw have an after-hours automated number that can be called? i’ve seen ones that provide payment due dates and payment amounts. sometimes i’ve heard it provide last payment of $xxxxx.xx received on date xx/xx/xxxx. otherwise, i’m out of ideas…
If the payoff was less, VW Credit would refund the excess to the lessee, not Timmons. Fact.
Has OP explored the unwind option clause? The one in every sales contract?
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He’s still in the cooling off period isn’t he?
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I guess yes, because in CA cooling off period is around 180 days (joke!!!), so would rather just unwind the deal.
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LOL, I hope this is a joke and you’re not serious.