Hello, my 2017 Jetta lease is ending in 2 months. The lender is VW Credit. I don’t want to lease or buy another VW but I would buy mine is I got a buyout deal. With inventories of new and used cars pilling up I was under the impression that the lender would reach out to me offering an attractive buyout price. Also I added a wear & tear insurance so I don’t need to return the car in mint condition. I am also well below the 30K miles limit. I was thinking that I would wait until a month before the end of lease to try to negotiate something hoping they would reach out to me first. Any recommendation on how to proceed? If they don’t budge I might simply return it. The buyout is at $10.9 for a SE manual but used car prices might go down in the next two months. Do you think that VW Credit’s policy is to reach out for a deal since they might not want to resale the car given the current environment? Or should I simply contact them and put an offer that is reasonable?
Why did you base this impression on?
Ditch it or extend if you have a low payment. Unless they are willing to go $3k or $4k back, which I doubt, it isn’t worth buying. The used market is about to get flooded with late model rentals.(which includes jetta’s in the new body style)
Simply an assumption based on the fact car auctions might not be favorable to seller during the pandemic.
It’s going to get strange, certain new car inventories are low because factories have been closed. But Hertz filing for bk suggests a big influx of late model used cars, auctions will resume, online already has
Do you think that lenders are interested in getting rid of cars via buyouts for which they would offer deals rather than going through with the regular process which might end up costing them in storage, cleaning, auction etc?
I wouldn’t hold my breath waiting for them to call and offer a lower buy out. BMW has done it in limited cases, but I don’t think I’ve heard of any other brands doing the same.
Definitely has, check their website out, so many cars for cheap, but again, rentals.
I think that rentals would be harder to resale if needed and although they generally only have had one owner they had lots of different careless drivers. So it seems to me that auctioning a car in the coming months would be harder with the inventory piling up, people selling cars because of the recession, Hertz’s bankrupcy and possibly other rental companies going under. Well, looks like I just hope that VW would make a gesture to seal a deal but I would not pay over $10k.
Im gonna get rid of my Altima at 2k above KBB thanks to Carvanna during this crazy. If I go through, I’ll get a cheap lease to tide me over through this madness. Will be cheaper than keeping up on maintenance on this thing…
When you’re within 30-days and they have not reached out, go ahead and call them with your offer. These are strange times so don’t be surprised if nothing comes out of it…
If it’s cheap enough people don’t care, plus it still drives the price down of all cars, rentals or not. And there’s still people out there dumb enough to know if a car was a rental or not “hey folks let me show you this program car, it’ll save you thousands”. Plus I bet allot of these cars will be low miles. @HersheySweet
Definitely. There’s a will, there’s a way. 40k 7 series, someone’s going to buy that, honestly.
If the car actually is in reasonable to mint condition currently, the first part is a sunk cost with no current relevance. If the car is in rough shape I’m pretty sure you would even be entertaining a lease end buyout. Personally on our Tiguan, I didn’t bother with EWT because even for the $600 it cost, I didn’t reasonably expect I’d have more than that worth of lease end charges if any at all. At the rate we’re going we’ll probably be turning it in with under 25k miles, maybe under 20k, so tires are likely to have plenty of remaining tread. And if I should entertain buying it out, it’s irrelevant anyway.
So then that just leaves the miles. While VWC is unlikely to make you an offer as it could set a bad precedent, you could try to see if your local dealer would buy it from VWC and if so what they’d sell it to you for. The low miles actually work against you though as it limits how much of a price hair that is warranted for the car. But a manual ‘17 SE is likely to get penalized at auction so you may be in ok shape.
My car got inspected 45 days before the end of my lease. Some wear and tear that go beyond the acceptable levels were reported but are fully covered by my protection plan. Without it I would have been liable for a few hundreds of repairs.
Do you think that based on this the creditor could agree on a lower buyout residual?
I certainly don’t want to do the first step and reach out but anyone with experience on creditor wanting a buyout rather than getting a car that needs some repairs?
No. Why would they? They are getting paid by whoever underwrote the protection plan, and a few $$ will not phase them whatsoever.
No. This is not the norm. Never heard of a captive reaching out to someone to potentially losing thousands more than they already have on the deal.
You can call and ask, but I’ve only ever known of this working once and it depends on the bank.