I just dropped off my Audi lease at the dealer today. Still have 50 days left. I was following the booklet that they had sent about the end of lease process. Later this evening while going thru the AUDI financial page FAQ I noticed that if you return 30 days early then there is an early penalty
I know I am on hook for the last payment and the disposition fee
Did I just do a mistake?
No you will just be liable for any remaining payments and disposition fee.
As long as you made all of your payments to them plus disposition fee I don’t see why they would charge you?
Why did you turn it in early?
I imagine I’m this case they’re referring to outstanding payments. With some brands, however, if you turn in way early (90+ days), you’re liable for either the remaining balance or the auction value.
I was not driving around much due to shelter in place. So returned it early. The document they had sent out didn’t talk about any penalty , just steps to return the car
I haven’t yet paid my final payment. It seems they will send me the final settlement
You’ll get a final settlement letter in the mail in a few weeks. It’ll have any outstanding payments, your disposition fee (plus tax) and any chargeable items you had on your inspection report (provided you had the inspection done)
This is the letter from Audi, Please can you help me in interpreting the last three lines of the post, quoted below:
In the event the realized value of the vehicle
is less than the residual value on your lease agreement, your early termination
charges will consist of a, b, and c above plus the lesser of excess wear, use, and
overmileage charges OR the loss at auction**
Letter from Audi
You will receive an early termination invoice within 2-12 weeks of
returning the vehicle. The amount you owe will take into account the
realized value* of the vehicle and may include the following charges:*
a. Vehicle Return Fee
b. Remaining payments not yet paid minus the unearned rent
charge
c. Taxes, fees, and any other outstanding obligations
d. Excess wear and use charges (not repaired prior to turn-in)
e. Excess mileage charges*
*In the event the realized value of the vehicle exceeds the residual value on your lease
agreement, you will not be assessed excess wear and use or excess mileage charges,
and the surplus will be applied as a credit toward your outstanding obligations. Any
additional amount beyond the remaining obligations will not be issued as a refund or
*applied toward any additional fees owed. *
In the event the realized value of the vehicle
is less than the residual value on your lease agreement, your early termination
charges will consist of a, b, and c above plus the lesser of excess wear, use, and**
overmileage charges OR the loss at auction
Appreciate all your help
Jag
Vehicle return fee sounds like the disposition fee.
This doesn’t seem like any “special” process.
I think, I didn’t realize that I was falling into the early termination “trap”. I got really spooked thinking about the financial liability (Other than disposition and last payment). As I don’t have any excess usage or excess milage, wanted to be sure that I am not liable for the “loss at Auction” based on the letter;-(
Any update on if you were charged any additional fees or not?
No additional fee… just the remainder of lease payment (1 month) + disposition fee