04-28-2014, 11:19 AM
"The dealer doesn’t make anything on the transaction, but they can buyout the lease without paying tax/registration."
Yea, right.
First, a VW lease has 2 different buyout prices. one is the contracted value to the customer. The other is a "Fair Market value" for any other entity or dealer that wants to buy the car. This FMV may be more or less then the contracted lease residual value based on the market and condition of the vehicle.
Example, I wanted to trade in my 2008 VW R32 with 3 Lease payments left. My buyout price was just under $18,000, plus sales tax on that amount. The dealer called to get a buyout price and they were given a value of $21,000. I ended up buying the car from VW leasing for the $18k and then delivered the car to the dealer and signed over the title.
Several years prior, 2006 Chevy Trailblazer. The residual value was $18,500, but the local Chevy dealer was ab le to buy the truck from the leasing company for $15,900. I then bought the same truck back from the dealer for $17,500 but since the dealer bought it, they were able to sell it as a "certified Used Car" and I had a 5 yr, 60k factory warranty back on it plus I saved $1000 on buying the truck if I tried to buy it from the leasing company
Yea, right.
First, a VW lease has 2 different buyout prices. one is the contracted value to the customer. The other is a "Fair Market value" for any other entity or dealer that wants to buy the car. This FMV may be more or less then the contracted lease residual value based on the market and condition of the vehicle.
Example, I wanted to trade in my 2008 VW R32 with 3 Lease payments left. My buyout price was just under $18,000, plus sales tax on that amount. The dealer called to get a buyout price and they were given a value of $21,000. I ended up buying the car from VW leasing for the $18k and then delivered the car to the dealer and signed over the title.
Several years prior, 2006 Chevy Trailblazer. The residual value was $18,500, but the local Chevy dealer was ab le to buy the truck from the leasing company for $15,900. I then bought the same truck back from the dealer for $17,500 but since the dealer bought it, they were able to sell it as a "certified Used Car" and I had a 5 yr, 60k factory warranty back on it plus I saved $1000 on buying the truck if I tried to buy it from the leasing company