I want out!
Hi all,
I have one year left to go on a 4-year lease of a 2002 Jetta 1.8T. In short, i hate this car, I’m done with it and want out. What are my best options? If I return it to VW, they will auction it off and bill me for the difference between the lease payoff (about 13.5K) and the auction sales price (i.e., I get raped). My plan was to sell it privately, it should fetch about $11.5K (mileage is just over 30k and the car has many extras such as moonroof). However, when I receive the check from the buyer and in turn pay off the lease, I effectively take ownership of the title (before then transferring it to the new owner), which means the California DMV will hit me with sales tax on the $13.5K lease payoff — this means I’m paying another $1200 on top of the $2000 I expect to lose, which just about equals my remaining lease payments. Are there any alternatives, or am I going to be stuck with this thing? (One option would be to use it as a dealership trade-in, but I’m not loking to take this route)
Any advice is appreciated.
Thanks,
Rick
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Beck Said,
May 27, 2005 @ 6:17 am
I want out! – Ask the new site troll….., I mean “”moron”" what you should do with your Volkswagen. He seems to have an answer for anything regarding Volkswagen quality. Maybe he can exorcise the crap quality demons from your Volkswagen. Or try hypnotize you to believe that there’s no problem like he always seems to want to do to members of this site.
But don’t mention to him if you have a Japanese car in your garage too! The Pentosin, G12 and CH11 in his head will boil and make it blow up!;^D
Post edited 05/27/05 8:24 PM by Beck
297 Said,
May 30, 2005 @ 10:41 am
I want out! – You’re stuck paying extra if you want out a year early, period. There really aren’t any options when trying to break out of a lease early. If you can wait out the year, you can walk away clean.
jasenm Said,
May 31, 2005 @ 7:26 am
I want out! – being a vw salesman, i can try to assist you with this, you need to get a payoff on your lease. keep in mind that a lease is based on the rules of the 78th’s, which means in laymans terms that it is not a simple intrest loan. never buy at the end of a lease or trade in early unless you are prepared to take a hit. next time try a balloon, or in the vci terminology a drivers option, you may have heard of gm’s equivalent called a smart buy. chrysler calls it a gold key, ford/volvo/mazda calls it a red carpet, etc….this way the intrest is accrued on a daily basis (simple)rather than paid upfront (78th’s), and you dont take as big of a hit on the taxes either. (fyi leases are technically an exise tax). anyway, do a payoff and take the appraisal of your car (books at around $11k, we buy them all the time like yours for 10,200 +/-, but you may get a touch more if a dealer wants to move a new unit. vci likely would give around 10 or less, its thier call not yours, and they like any auto makeer ain’t in the business of giving people top dollar) take the negative equity and roll it into a new car. pretty much what you said, there are no real alternatives on your own find unless you find a creative dealer of any make or model and get a good offer. just dont do a lease, do the balloon. also you get a guaranteed figure at the end of the term, not a loose a.c.v. remember whatever you buy in 2 years the love affair is over. you may want to check with an audi dealer, you can get a good deal on an a4. if you like you can contact me at vw of orland park, (illinois) my name is jasen if you want any reccomendations.
a car with a rebate or dealer incentive is best, but the residuals arent so great then, but if you really want out you need it to keep your payment comfy.
i know you said your not looking to go the trade in route, but don’t you need a car? if you gave it up what would you drive? just curious.
Post edited 05/31/05 7:29 PM by jasenm
Post edited 05/31/05 7:56 PM by jasenm
Post edited 05/31/05 7:58 PM by jasenm
Post edited 05/31/05 8:00 PM by jasenm
jasenm Said,
May 31, 2005 @ 8:01 am
I want out! – beck, YOU are a troll.
Post edited 06/04/05 2:15 PM by jasenm
Chombi Said,
June 1, 2005 @ 3:13 am
I want out! – Beck, a troll?
In the least this is a case of the pot calling the kettle black?…………..
Jasenm, you don’t even have to try hard to sound so stupid.
The volume of your posts have suddenly shot up. The dealership must be deserted and there’s nothing to do huh?
jasenm Said,
June 2, 2005 @ 2:26 am
lol – every time i post here some jackass comes in with the great line “wow you got alota time, your sales must suck” or something like that. how creative. chombi, i’d take you to the hoop i.q.-wise, don’t flatter yourself by trying to insult me, instead make sure that you put more salt on my fries next time, they have been a touch on the bland side of late, chief. and yes, your apparent boy-toy beck is a troll.
297 Said,
June 3, 2005 @ 1:23 am
I want out! – By that logic, the userbase of this site is 90% trolls.
jasenm, you provided good advice concerning car leases in general, a bit of knowledge useful to those who often go that route. You didn’t need to add an insult towards Beck in a secondary post, that simply invites mudslinging and drowns out knowledge with useless rants.
This goes for everyone. Saying VW sucks and saying why is one thing, going off on a tirade in defense or in attack, then making such rants personally directed towards other users, just makes the site look cheap, and frankly, goes against the policies posted at the bottom of the page.
you_moron Said,
June 3, 2005 @ 7:45 am
I want out! – The site is cheap……just kiddin. See, I may be a so called “troll” but atleast I can see varying opinion of the cars I love.
V-dubber Said,
June 3, 2005 @ 10:06 am
Lease-Out – RunnersHigh-
Good luck getting out of your lease without losing your shirt. I had no idea there was any difference between a “”balloon”" lease and a normal lease…now I know.
The only input I have on this subject is this:
Car salesmen tend to direct your focus toward your monthly payments…not on the price of the vehicle or the terms of the loan. Let’s not kid ourselves, one of the main reasons leasing is popular is because it allows people to drive nicer cars than they could otherwise afford. I won’t get into a debate about the pros & cons of leasing because there are strong arguements on both sides depending on the circumstances. In some instance, a lease IS the better finanacial option, in others it really is a vanity issue…just look at the terms on a G35 coupe or a BMW 3-series lease.
When I test drove the Civic Si a few weeks ago, the first thing the salesmen did was ask what my monthly payments were. He then proceeded to assure me that he could keep my monthly payments in that ballpark. He seemed shocked that my concern wasn’t about my monthly payments but it was about the $$ gap between what I’d be trading in and what I’d be buying (which would in-turn keep my monthy payments low)…duh. On a side note, I don’t think I’ll be buying a Civic SI…nice car, just not for me.
Anyway, if you purchase a new vehicle and take out a 5 year loan (my VW dealership really pushed me into the 5 year instead of the 4) unless you are making extra payments to pay it off early, there will probably be a year or two where you will be “”upside-down”".
When I went shopping for my VW two years ago, ford was offering $150/month payments for the focus…but the interest rate on that promotion was something like 11% and the loan only was for 1/2 the price vehicle…you’d still have to refinance in three or four years! That may be an extreme example…but you get the picture. I’m pretty SURE VW is NOT any more evil than anyone else when it comes to getting people to buy cars. The whole industry is designed to keep people in a finance state where it will always make sense to buy a new car.
297 Said,
June 3, 2005 @ 11:13 am
I want out! – I never understood the loan concept myself. Every car I’ve had (granted, the count is only at two) was bought. And in two years, I get the pink slip from the bank and can truly say it’s mine. That and a nice chunk of income frees up.
jasenm Said,
June 4, 2005 @ 2:14 am
PAUL – THE WORD “”TROLL”" WAS INITIALLY USED BY OUR OLD PAL BECK, A.K.A. GI JOE, FOREVER AT BATTLE WITH “”COBRA VW”". I WAS TAKING A SHOT AT AN OLD NEMESIS WHO TOOK THE 1ST SHOT HIMSELF. NOT THAT IT REALLY MATTERS, BUT I COPY/PASTED HIS INSULT BELOW:
Beck
Posts: 151 05/27/05 6:17 PM
Ask the new site troll….., I mean “”moron”"
jasenm Said,
June 4, 2005 @ 2:35 am
LEASE – YOU ARE GONNA PAY ABOUT THE SAME EITHER WAY….
if you can GUARANTEE yourself that you will still have the car you want to buy in 5-6 years, AND I MEAN ABSOLUTLEY GUARANTEE, then do not lease. ever. bad choice.
if you cant, then either a lease or balloon (drivers option) is a good option, it will ELIMINATE any inequity (upside-down-ness) on your trade. if you finance, you will pay the entire amount of the car, plus tax and intrest, and at the end of the term you have what? a 5 or 6 year old unit out of warranty worth about 2k-6k. but you payed likely more than that much more over the term of the loan to gain said equity. like i said you pay the same regardless. if you lease or drivers option, you dont have anything at the end, but you paid less during the duration, sometimes way less, like i mentioned you might have 2k-6k equity, depending on miles/condition/model at the end of the finance term, but the average vw residual is usually 40%-55% of msrp. (residual % = the amt. of the buyout at the end, subtract this # from selling price to get the amt. you ACTUALLY ARE GONNA PAY) basic idea is you pay for what you used.
porsche invented this, to make boxters and 911’s more affordable to common men. bmw picked up the ball and ran then the americans and japs came in, but their residual % is generally too low to condone doing it due to the fact that the resale blows. btw, residual and resale are one in the same, resudual is a forecast or prediction of what the car will be worth is X years, usually 36, 39 or 48 mos. NEVER DO A 5 YEAR LEASE UNLESS ITS ON A 100,000 CAR. and lease uses money factor, not intrest rate, but that gets complex. thats why VW is a great car to lease. i’d hate to see runners boyout on a hyundai or a chevrolet.
ENJOY!
Post edited 06/07/05 2:50 PM by jasenm
jasenm Said,
June 7, 2005 @ 3:00 am
THIS POST – STARTED AS PRODUCTIVE UNTIL THE LYNCH MOB OF AUDITECH, CHOMBI AND BECK CAME IN.
Chombi Said,
June 8, 2005 @ 12:51 pm
I want out! – And you’re such a nice guy Jasenm!…………..Give me a break!
jasenm Said,
June 11, 2005 @ 1:35 am
right – i am a nice guy, thanks. car salespeople are, after all, people. i just dont tolerate ignorance and constant negativity. you guys always seem to find something negative in everything about vw. i wonder if that translates to other facets of your lives. so unhappy. i really am sorry you are unhappy with vw, hell, they are not perfect cars, then again, i cant think of any mechanical or electric devise that it, nor has there ever been a vehicle without a recall or a tsb.
shawniece Said,
June 11, 2005 @ 2:40 am
Leasing – I wish I had known about Drivers Option.
VWVictim Said,
June 11, 2005 @ 3:51 am
Negativity – I never cease to be amazed. People come to VWSUCKS.COM and are surprised that people think VW’s suck.
you_moron Said,
June 11, 2005 @ 10:17 am
point – “”i really am sorry you are unhappy with vw, hell, they are not perfect cars, then again, i cant think of any mechanical or electric devise that it, nor has there ever been a vehicle without a recall or a tsb.”" -Jasenm
Thank you, someone else finally proved my point. ANYTHING man made is unreliable at best. What happend to the space shuttle Columbia?(Unfortunately, I’m a huge space fanatic)
jasenm Said,
June 13, 2005 @ 4:12 am
i wonder – if runners high ever checked back on this post.
297 Said,
June 13, 2005 @ 4:20 am
I want out! – The answer to that would be: unknown, he never logged on ever again, but he could’ve browsed the site without logging in.
jasenm Said,
June 13, 2005 @ 4:29 am
power of paul – wow, you did terminate rick, didnt you?
297 Said,
June 13, 2005 @ 4:36 am
I want out! – Uh… no, he appointed me. And he can un-appoint me any time he wishes to.
bruce Said,
June 14, 2005 @ 7:45 am
i love paul – paul i want to have your baby
rick Said,
June 17, 2005 @ 1:27 am
There shall be no baby making on this site… – …that was part of the agreement.
Gotta say, though, jasenm actually gave a pretty good paragraph of advice back there… I learned something that I’ll never use, but I’ll bet that other imposter Rick (aka Runnershigh) got what he needed.
jasenm Said,
June 21, 2005 @ 9:47 am
lmoa – @bruce. paul, enjoy the perks of being the big vwsucks.com “”pimp daddy mac”"
i see paul now….have this vision of him looking justlike kramer in the seinfeld episode where he’s busted as a pimp with the big coat, cane and feathered hat.
hoo-llllla!!!!
V-dubber Said,
June 22, 2005 @ 11:31 am
I want out! – Are you referring to the “Amazing Technicolor Dreamcoat” ?!?! Classic episode… although if it were true, a big ‘ol Caddy would fit that persona better.