Interesting. My family bought out a VW lease a month or so ago. It was a piece of cake.
Perhaps because it was a buyout where we dealt directly with VWFS and not with the dealer.
Not sure what state you’re in but you save a lot of money if you just buy out the car outright first. The dealer charges a ridiculous amount in fees (dealer fees etc.) , whereas the bank directly doesn’t.
If your situation allows for it, buy it out directly and you can seek financing later if needed with the title as collateral?
Perhaps try a local bank or credit union. They can be more understanding with something like your wife not having income but the car being in her name. You might be able to get the loan applying as the two of you, and VW will be happy because your wife has the $ to pay for the car.
Oh Gotcha. I am seriously compilating a 401K loan, which I can have the funds in 3 days, at 4% APR paid directly back to myself. If I go that route, I just payoff VW in my wife’s name and its much easier.
I took this approach multiple times when I anticipated flat\down stock in the short term. You can refinance your loan later on with some CU. Penfed has good refinance rate for example. My only out of pocket expense was $45 quarterly fee to Fidelity.
I just may do that… the one dealer finally called me back (a week after I first reached out to them!) and gave me a good interest rate (2.99%) but with them claiming to have to buy from VW and resell it to us, and other misc dealer fees, and their mandatory “safety inspection” the price is $53 a month higher than if I send a check to VW Finance! That amounts to a $3200 premium over a 3rd party loan!
Anyone here aware of a PA state law that says you have to do the transaction at a dealership? I saw that somewhere else online, but can’t seem to verify it?? I’m also trying to figure out how and when I would pay state sales tax on the purchase from VW, since they told me they would not collect the tax.
I’m getting ready to send VW Finance a check for our Residual Value to buy-out our ending lease. They don’t charge any fees on top of the RV, but interestingly don’t collect PA Sales Tax.
I’m trying to figure out how long I have after sending them the check and receiving the title to get to a DMV and pay the tax. Is there a 30 day period or something similar.
Note a dealership won’t be involved in this transaction. (I posted a separate question earlier today about the fees and higher prices they quoted me.) I’ve obtained 3rd party financing to send the check direct to VW Finance in the amount they requested.
I assume after I receive the Title from VW in the mail, I take that to the DMV or John Yurconic Agency to pay the state their cut. I’m sure someone here in PA has done this before, but neither the DMV nor the John Yurconic Agency could give me a clear answer on how long I have to do this.
I am so confused… VW credit says I can send them a check; but I’ve found posts on other sites that say in PA you haveto go through a dealership to do a lease buy out.
(In googling this I found Hyundai finance FAQ that says in PA have to buy out your lease at dealer.)
But the VW dealer said they can’t honor the RV because they have to buy and resell from VW?? BS or true??
IDK where people get this idea from. I see the FAQ on HMF but AFAIK there’s no law on the books preventing it. I’m in PA and this is my payoff to Volvo, I can send a check right now. This does not include tax, so I’d owe 6% on this to the state of PA when registering the car IIRC.
I wanted to post some follow up to my question here incase years from now someone comes across this thread and it’s been left unanswered.
While I don’t claim that this is 100% accurate info, I can state that neither VW Credit (our VW lease) or US Bank (holds my Jeep Lease) said they were aware of any law/reg in PA that said a lease buy-out had to take place at a dealership.
So this seems to align with the fact that I should be able to send VW Credit a check, get the title in the mail, and then take it to the DMV to pay the state tax.
And, I talked with one co-worker who said a few years back he bought out a honda lease by mailing HMF a check, paid tax at the DMV with the title transfer, and no dealer involved.
Hi there. I’m in an interesting and similar situation. I’ve got a 2019 Tiguan with 9 payments on the lease remaining, but I leased in NJ… not PA. The buyout is a good amount less than the vehicle is actually worth and I’m looking to get what remains bought out and incorporate the difference into a new non VW lease. I just had a dealer tell me earlier that only a VW dealer can buy out a VW lease. He suggested I look at Carvana. I received a quote from Carvana about 3k less than what true car is suggesting the vehicle is worth. Can anyone validate the vw buyout claim? Any suggestions if I’m looking to keep this as simple as possible while trying to make the most of the current market for my Tiguan? Thanks in advance!
Shop it around to other VW dealerships and even third party brokers to get a sense of the value. Don’t believe KBB or other car valuing companies since the used car market is so volatile. You can always buy it out yourself. You will pay tax, but likely only about $1K and gives you a ton of flexibility.
Trading in a car and getting a new one at the same dealership doesn’t mean you will get a better deal and actually makes it harder since you have multiple variables.
Do not roll all the equity into the new lease… just take the check to avoid the situation where it would all be loss if the car is totaled.
I found this thread very useful so I wanted to add my update.
I live in PA and leased my 2019 Atlas from Piazza VW in Ardmore. I have 3 payments left on the lease. My residual value is $22,489. The payoff quote I received from the dealership was for $27529. I asked the salesperson to explain that charge and this was the response I got:
"The dealer payoff is $24,098 then there is a $1,222 processing fee (for us to do the paperwork of buying the car from VW and selling it to you) Plus Tax $1,519.20 and $690.67 motor vehicle fee.
This brought the total to $27529
I logged into my VW Credit account and there is a button there to request buyout quote. I received a PDF the next day with the following quote:
Residual Value $22,489.48
Residual/Payoff Tax * $115.00
Remaining Future Payments $1,277.76
Lease Charge Rebate ($163.63)
Quote Amount ** $23,718.61
I called VW Credit and spoke to a customer service agent to confirm I did not need to go through the dealership and he confirmed that I was correct. I just need to send them a check for the quote amount and then pay whatever taxes at the DMV.
So, I saved myself about $2000 by skipping the scummy dealership.
Thanks again for everyone on this thread. Very helpful!
