My daughter’s VW Tiguan lease is up in April and I want to purchase the vehicle. It’s my understanding this has to be done through a VW dealer. She lives in Denver and I’ve heard stories of dealers charging misc. fees when purchasing end of lease. Should I call around to different VW dealers to see what fees they charge or will they all pretty much be the same? Thanks.
Are you way over on miles?
Any purchase fees should be spelled out in the signed lease contract. Have you checked what its worth versus residual value?
No she’s got about 32,000 miles. It was a 39 month lease.
Residual is about $19,000 and it looks to be worth $23-$25,000
The allowable fees (doc fee and applicable taxes/registration generally are the only ones) are spelled out in the contract. Any dealer trying to charge anything not listed in your original lease contract, telling you that you need to pay for it to be inspected/cpod/etc needs to be reported to your local Attorney General’s office for violation of federal law (Consumer leasing act of 1976).
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Here is a better question. … Why do you want to buy it?
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Good question. She loves the car. It works for her in CO and leasing another car for the price isn’t possible. Her monthly on the lease was $252. You think it’s a mistake buying it?
No the motivation is helpful to understand. note even if you buy it, your “payment” will be more than 252. If you are paying cash, might as well get her a car that is slightly more but one she likes monthly.
Interest rates have gone up, inflation has gone up so 252 may not be realistic (presuming the 252 was really 252 without a bunch of addons, cash down, trade in etc).
I would go for a subaru, or infiniti sedan, or honda prologue or so many other options. Best to get a few dealer quotes and just sell your VW.
Cash or loan?
Cash no loan
An out of warranty VW will cost you some money in maintenance and repairs eventually. It sounds like you are buying the vehicle for her? What year and model Tiguan? To be worth more than $19K it has to be a 2021 AWD or maybe a 2022 model.
Is there any rule stated in your lease contract that you have to go through a dealer for lease buyout? I bought my leased Audi directly from AudiFS. As far as I know vwfs allows you to buy directly.
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Is there a law in CO requiring you to go through dealers?
Yes, I’ve yet to hear a happy ending to VW ownership.
It’s a 2022 SE 4Motion
Yeah I was surprised too but VW requires you go through a dealership.
I’m not sure if it’s a CO or VW requirement.
I had no idea it was such a bad investment.
Unless it’s a state requirement you don’t have to. In fact vwfs listed in their website in step 3 one of the options is to send them message them through help center for payoff quote and instructions: VW lease transition and ending options | Volkswagen.
Audifs has exactly the same instructions: Audi Financial Services | Learn about lease transition options | Audi USA. I bought out my lease in 2022 and I remember navigating through some menu options in the audifs account and getting a pdf with payoff quote with instructions. My experience was same as described in this Reddit post: https://www.reddit.com/r/VWiD4Owners/comments/17pzz14/vw_credit_lease_buyout/