VW Credit policy doesn't make PA lease buy-out easy

Need to vent! The lease is ending on our 2018 VW Tiguan end of this month. We decided that with sky high lease prices, the residual is actually a good deal now, so buying the car is the best option we have.

The first problem we’re having is the two local VW dealers are unresponsive to phone calls asking about helping with the buy-out process. No returned calls or emails! Yet VW Credit says the only way to finance though them is via a dealer.

The second problem is VW Credit is making a 3rd party loan difficult with their policy the car can only be sold to the name on the lease… not even a spouse at the same address! The car was leased in my wife’s name, but she left her job a year ago so has no salary in her name. I can get financing in my name, but VW Credit won’t accept that since I’m not listed on the lease! Supposedly I can send them our marriage certificate and VW Credit will accept a payment in both our names at the RV, but the banks say they’ll only finance a lease buy-out in the name that’s on the lease. So I don’ t know if they’ll let my name on the loan even as a co-applicant??

There’s got to be something I’m missing here! It shouldn’t be this complicated to buy a car! I’m starting to get nervous since we’re almost half way through the month already!

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?

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Interesting… we’re in PA, but VW Finance told us we couldn’t finance directly through them without going to a dealer.

Yeah I think financing directly has to be done through the dealer, we did an outright buyout which can be done with the bank.

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.


That does sound significantly easier and paying yourself back interest instead of a bank sounds better.

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definitely the way to go imo

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!

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Other than the crap fees, the dealer is definitely pocketing a good amount of money in financing. FYI, here is the current penfed rates: Auto Loan Refinance Rate | PenFed Credit Union | Used & New Car Refinancing. I’m pretty sure you can find better rate if you shop around.

exactly why we did an outright buyout.

Try Lightstream. No collateral/title needed, so you can buy it as if you’re purchasing it in all cash. This will allow you to buy direct from VWC.

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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.


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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.

While the DMV wasn’t sure when I called them, I did find this on PA DOR’s website: [Do you need a Bill of Sale on a lease buyout for sales tax, or is the purchase price that we write on the MV-4ST sufficient?]

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.

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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.

We literally had the identical thread last week… hope you listen to the good advice better: LEASING ANOTHER CAR, THIS TIME IN 2022...or NOT

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