I am currently leasing a 2019 VW Tiguan SE 4 motion (my 3rd VW in a row!), ready to turn in and a few things came to mind.
First off, I am about 8K miles over. I’m not afraid to walk away and pay that penalty fee and go elsewhere, but I would imagine a VW dealer would sit down and absolve those fees and have me stick around another 3 years. Price-wise, its a very volatile market and there is no way I will get a better car (for ex: Atlas V6 w/tech) for a reasonable price…or maybe i can?
Some thoughts:
I thought of whether I should buy the lease outright, not worry about paying for the extra miles, etc… (@$17K if I buy from VW), turn around and sell it to Carmax, Carvana, etc. (They are offering between 21K-24K for it and all that paperwork will take 6 weeks at least and i’d most prob add more miles), then with whatever profit i make (i’m estimating around 3-5K) use that to get in another car
…or
Hop in another lease, I wish it would be the Atlas V6 version… or bump it up to another Tiguan ( I really like the r-line) and just call it a day. But with this crazy market, my monthly payments are going to be way above my $399/mo.
…or
Say bye bye to my VW days and move on to another brand.
Thanks for the tip @mllcb42 … I thought of that as well and called VW Credit and they said the price they would quote a dealer would be the market price which would not be what I was quoted. So not sure it would be a win for me.
Well then, I’ll be turning in that lease today and let’s see what the dealers will offer!
I just feel like either way, i’m going to get burned in this market for a new car. There are so many lots either empty or near empty. A whole lot of “In transit” cars and its a very difficult situation either way for anyone trying to get a new car. Im hoping to make a deal today. Let’s see!
I will start by looking in the marketplace how much the Atlas V6 is going for. Let assume 600$.
Then based on your calculations you will net 4k from your Tiguan.
So 4000 /36 = 111$.
So in that case scenario your Atlas will cost you 490$.
Now I will go to a few VW dealer and try to negotiate an Atlas and trade in for below that number.
Again, BEFORE going in to the dealership, make your homework to know exactly your numbers of your equity, and the leases. And negotiate the lease and then talk them about adding the trade.
You should be able to get yourself what your looking for.
A dealer has no power to absolve the overage… either they would buy the car and just tell you they did you a favor or roll it into the next lease. You owe the money to VW, not them.
Buying it out seems like a no brainer since you have positive equity and gives you the ultimate flexibility to sell to whomever you want whenever. There are no deals to be had right now, especially with the limited vehicles on the lot.
I definitely wouldn’t show up at the dealer today and just take whatever they offer.
So here’s what I’ll try to do. I’ll take my chances and go to dealers today. If there is a deal to be made ( A miracle will be needed!) we will make it. If not, I will call back VW and lease month to month until we find the right car! FYI - dealers are closed on Sundays here in NJ. Ughh…
And a big THANK YOU to those that have pitched in. I’m happy to be part of this community and keep those comments coming in!! ill be on it all day today!
I just did this with my daughter’s 2018 Passat R-Line. Lease was expiring and the payoff was $12,100. I reached out to a VW dealer and they offered $19,300. It was easier for me to just use that equity to lease her a new car rather than dealing with all the paperwork of buying/reselling. Ended up with a Tiguan SE 4Motion for $250/mo.
Note that as stated above, this will only work with a VW dealer as they are quoted the same payoff as you have on your contract. Any non VW dealer will be quoted market value-ish payoff.
Before the pandemic circa 2018 I used to negotiate outside the dealership, it just so happened the day I went into the dealership I scored a fantastic deal. I believe it was just luck and timing because I usually never negotiate at the dealership.
And they didn’t have an Msrp on the Tiguan sE inflated by 18% or 33%
I have reached out just to see what lease quotes they are getting for basiic cars and I’m getting numbers no less than. 400 on base models. One guy I know leased a 2021 rav 4 LE for $500 a month.
So…
Got to the Dealer and tried to get myself in a new Atlas…they asked me for somewhere near $677/mo for that (including buying out the lease and using the equity)…of course that wasn’t working out…and my next thing was a Tiguan SE R-Line 4Motion…long story short…we got to a decent number that I felt was close to what I could get (not ideal, but given the market it was ok) which was $490/mo for 39months ,15k miles with a cash due at delivery amount of $1500. I know someone that had basically the same car (the '21 version) for $590/month (and it wasn’t a 4Motion). The equity I was promised was $3000, plus I had to put a $500 deposit on the car to hold. So let’s see…I still have to wait for the car to come in (this week hopefully) and I still have to call VW to see if I have a grace period or will need to extend the lease…So we’re not completely done yet!
Did you receive any kind of deal sheet? I may be wrong but I have a feeling that almost an effective 600 a month for a 35k Tiguan might not be the best you or anyone else can do right now, even in this market.
What’s happening to the $3k in equity? Is that going as a down payment so really putting $4,500 down? Or they cutting you a check for the $3K? Do NOT roll it into the lease.
Sounds pretty bad IMO but probably best you are going to do walking into a dealer. It’s essentially what’s available on RODO for a $36K R-Line. Are you paying sticker or more? What’s the MSRP and sale price?
There is no additional value in trading in and leasing from the same dealer so call around for trade in quotes as you got a ton of VW dealers in NJ. They are only giving you $20K while you said you can get between $21-24K so you aren’t maxing out your trade. Some of the brokers here can buy out leases even if the captive doesn’t allow 3rd party buyouts.
