Lease return / buy back / Trade-in and take new lease

Ask the Hackrs
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1

Please excuse me for a long post. I am posting here for the first time, need your help.

I had leased 2017 VW Jetta 1.8 SEL for 2 years with a total 20000 miles
Paid drive off $3000 and Monthly payments of $171 (after CA taxes and includes wear and tear package of worth $1250).
Car is in mint condition with only 11000 miles.

My lease turn-in date is on 2nd week of December with the current payoff quote is $14591 (which includes remaining 3 months payment)
If want of payoff and buy the car now will I have to pay $14591 and CA tax of 9 %? what others charge I should consider, sum up?

Also, I got quotes from Carvana: $14850 and Vroom: $14300.
Is there scope for me to negotiate the final price with either Carvana/Vroom to increase or VW finance to lower the payoff quote and
Is there a possibility to make positive equity of $1000 to $ 2000?

Also please provide me any suggestions:

  1. Buy the car since it is mint condition.
  2. Trade-in car to Carvana/Vroom.
  3. I have a desire for SUV. Is VW Tiguan is a good option to lease?
  4. Any other alternatives.
2

VWFS most likely will give Carvana/Vroom a higher buyout price than your buyout price, so you might not have any equity afterall.

3

Thanks for the info.
What would suggest me to buy the car given it has less miles(11000) and in mint condition or return the car take new lease from VW/somewhere else?

4

I got updated trade in value from Vroom. Now it is $15200.
This is good jump from $14300 which was quoted last month.

5

I’m relatively certain that neither will negotiate. VW especially will not negotiate the buyout

6

If you have cash available and are getting higher quote from VW credit for Carvana, you can buy the car and sell it to Carvana within 10 days without paying any CA tax.

7

I have also used credit card with VW credit before. Not sure whether credit card can be applied towards buy.

8

Should I ask Carvana/Vroom to call VW credit and find out what buyout price they quote from them ?

9

Do you mean to say use VW credit card to buy and sell to Carvana/Vroom (if they accept Credit card for buying) so that I save my cash?

10

Will there be any advantage for me if do lease return and lease another car from VW dealer?

My point is to get positive value in any form for the remaining 9000 miles, car mint condition and It is leased for 2years only.

11

If you do a lease return, you are not able to get any of the equity, if there is any.

12

I meant use your own credit card to buy the car. A few years back I paid for extra miles with my credit card.

13

I haven’t done this for VW before. When I sold my leased Honda to VW dealer, they took care of everything. I’d ask Carvana about the process.

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14

At least will lease car return fetch me lease incentives and better negotiations for leasing another from VW car.

15

Uh, no it won’t.

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16

If VW has loyalty it will get you a better incentive. It will get you absolutely 0 negotiation power

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17

I will give a try with Carvana/Vroom if it works.
Thanks for your advice.

18

@Jon @BoardWalkNJ Thanks for you valuable advice.

Few routes I might decide to go.

  1. I will call up Carvana/Vroom as @kaz5 suggested to check their buyout price from VW credit. If I get any equity it’s good for me.

  2. Check With VW dealer about loyalty incentives and find out its worth. If it is good I might lease 2019 VW Tiguan.

  3. Buy the car and use it some more days get value of it and sell off.

19

@jon That’s interesting. I get why VWFS would do that, but its a bit confusing as to how they get away with it? certainly if I were in this situation I am going to go online and check my payoff before I go to carvana or whomever.

20

How they get away with it is it is their car. They can sell it to whoever for whatever they want, unless you plan on buying it, where they have to sell it at the contracted price.

Think of it as you selling your own car. You can sell it to your neighbor for X, and sell it to the guy down the road for Y. Perfectly legit.