Can I cancel my lease with VW after the diesel scandal?

notabenemike

I have VW Jetta tdi. On lease. My question is: Is the scandal with the diesel vehicles enough to cancel anyhow my lease?

What do you guys think?

carboy21

When did you leased it ? There is 30 day period you can return the car saying you are not satisfied with it.

If you bought it few months ago, then just default and let the bank/finance company reposes it

stever

carboy21 said:

When did you leased it ? There is 30 day period you can return the car saying you are not satisfied with it.

I don't think so, unless a dealer specifically offers that benefit. There's typically no cooling off or return period for new car sales or leases.

notabenemike

Thank You guys for your answers!

Ive got it two years ago. It still have 1 years of lease. I would like to get out of it...

Could I still get better cancellation? I think I might get worse because dealers wont accept diesel car?

carboy21

notabenemike said:

Thank You guys for your answers!

Ive got it two years ago. It still have 1 years of lease. I would like to get out of it...

Could I still get better cancellation? I think I might get worse because dealers wont accept diesel car?

Just bear it for one more year . Dealer will not terminate the lease. After one year VW might give you compensation.

cmhj2000

lots of luck, FWIW due to the lousy service this company offers I'll never buy another VW. Had a bug in the 70s that was it.

kyfdx

notabenemike said:

Thank You guys for your answers!

Ive got it two years ago. It still have 1 years of lease. I would like to get out of it...

Could I still get better cancellation? I think I might get worse because dealers wont accept diesel car?

Your lease isn't with the dealer or VW. It's a rental agreement between you and the bank. You'll have to comply with the contract terms.

jodaro

I'm in the same boat, lease ends in September 2016 but I'd like to cancel it ASAP. Hopefully they start announcing their plans to fix/compensate soon, but my guess is that they're going to take care of the government and the dealers and leave customers the crumbs.

texases

Aside from being disappointed, why cancel the lease? You're not out money, and if the fix causes poorer performance there will be some compensation, I bet. I'd hold onto it, see if compensation for the 2 years you've driven it appears.

Michaell

I think it is way too early to make these kinds of decisions.

As my co-host noted, you have a contract with the bank, and it seems unlikely that they will let you out of the contract with time left.

I will also agree with the posts above that there will likely be some form of compensation from VW on this. When or what it will look like is hard to determine, but be patient and see how this plays out.

The nice thing about a lease is that when it's up, you simply return the car. You won't have to worry about selling it or trading it in.

carboy21

Buyers with leases are the lucky ones ! People who bought it this year will be crying .
Very early leases and buyers can default on their payments and get it reposed., if you don't mind the hit on your credit record

boohorn

I have a 2014 TDI Beetle that is leased and a 2012 Golf TDI that has a bank loan. VW is holding the lease so I am planning on trading that in ASAP as I see it as a breach in contract. I purchased the Beetle because of the power and fuel economy which is posted on the sticker at purchase. I don't know how that can NOT be fraud. The Golf, however, is a different story as our bank is holding the note. Hopefully VW will give us a fair trade in value because the car is now essentially worthless. We will see how it pans out. I'm betting they will simply re-tune the engines making them EPA compliant, leaving us with dud cars that have crap acceleration and even worse fuel economy.

Michaell

boohorn said:

I have a 2014 TDI Beetle that is leased and a 2012 Golf TDI that has a bank loan. VW is holding the lease so I am planning on trading that in ASAP as I see it as a breach in contract. I purchased the Beetle because of the power and fuel economy which is posted on the sticker at purchase. I don't know how that can NOT be fraud. The Golf, however, is a different story as our bank is holding the note. Hopefully VW will give us a fair trade in value because the car is now essentially worthless. We will see how it pans out. I'm betting they will simply re-tune the engines making them EPA compliant, leaving us with dud cars that have crap acceleration and even worse fuel economy.

Your lease contract is with VW Finance; you have the option of trading it in but I suspect you'll be very upside down when you do so. Leases are not meant to be terminated early, even in the best of circumstances. I would hold off making any decisions until VW has announced how they will address the situation.

joelk01

Given that VW committed fraud, I think you can make a case regardless of the cooling off period.

isellhondas

carboy21 said:

When did you leased it ? There is 30 day period you can return the car saying you are not satisfied with it.

If you bought it few months ago, then just default and let the bank/finance company reposes it

Where did you get the idea you can return a car within 30 days? This just isn't true!

The person leasing that car will be responsible for making those remaining payments!

I don't see the panic. The people who leased are the lucky ones. If the car does go down in value they can hand over the keys at lease end and simply walk away!

isellhondas

joelk01 said:

Given that VW committed fraud, I think you can make a case regardless of the cooling off period.

There is no cooling off period with cars! I don't know where people get this idea!

isellhondas

I see people in a panic over what could end up being a tempest in a teapot!

In any event, this won't have a happy ending I wouldn't think and I wouldn't want to be a VW stockholder.

Michaell

isellhondas said:

joelk01 said:

Given that VW committed fraud, I think you can make a case regardless of the cooling off period.

There is no cooling off period with cars! I don't know where people get this idea!

I'm not sure this is a "black or white" issue. Some manufacturers and dealers do offer a return policy. A local VW dealer here in Denver gives you 3 days or 150 miles to return a new or used vehicle.

It is true that there are no state or federal laws that stipulate a 'cooling off' period, unless it's for a purchase made from your home.

And, as far as fraud is concerned, VW has not been convicted of anything just yet, so it's premature to believe you have rights regarding the disposition of your vehicle.

calpoly01

I have a 2014 VW Jetta sportswagon leased and my dealership  said they would terminate my lease.

I meet with them tomorrow to get all the details. Intended to purchase it after the end of the lease because I would most likely exceed the mileage.

Since VW  credit is my lender I expect they will be accommodating given that they will most likely take a small financial hit in exchange for me signing a release from any litigation. They can't  sell the vehicle and will probably still make some money in the end by selling it at an auction once they fix the problem.

Eitherway we will see. Furthermore  whoever said they haven't  been convicted doesn't understand civil law from criminal law. They already publicly acknowledged what they did and set aside $9 billion for fines and lawsuits. 

Them taking a $5k hit to keep you from joining a class action lawsuit definitely has their attention. Remember they face a fine of nearly $35k for every car they sold in the US.

stever

Sounds like a win/win. Are you buying/leasing a gasser VW or switching brands?

kyfdx

@calpoly01 I wish you luck. Report back after the meeting.

Mr_Shiftright

Don't EVER let your car be repossessed unless you are helpless to prevent it.

calpoly01

So here is what happened....

I spoke wit the GM at my local VW dealerships. They terminated  my TDI lease but the valuation of the car was ridiculous. I would have been way underwater financially when my lease expired in a year and a half.

They tried to steer  me to a new VW which would have allowed them to give me better incentives.

I opted to buy a used Audi which allowed them to give me decent incentives  given VW owns audi.

Long story short, I got out of my lease, reduced my monthly payment and no longer have to worry about owning a VW TDI. I also didn't have to pay anything out of pocket.

Oh...didn't have to sign a release so I could legally still join a lawsuit if I want compensation for the lost value or insane depreciation.

Wasn't the deal I was hoping for but I'm happy with how it eventually played  out.

If you was a new gas VW (or a brand VW owns)  it isn't too complicated to terminate your lease...if you you simply wanted to walk away from your lease...probably going to be expensive and expect the value of your car to be really low.

The customer service was good, my frustration was with VW and the people at the dealership understood that.

Hope this helps...good luck.

texases

Good you got what you wanted, but I see no basis for damages. Had you let the lease run out you would have just turned it in, not your problem if the resale would have been low.

carboy21

Which Audi and how old ?

kyfdx

Since it was a lease, how could you be underwater at lease end? Couldn't you just have turned it in?

What damages have you suffered, that would give you standing to sue?

thadcortez

Calpoly1, how did you terminate your TDI lease early without coming out of pocket? We're having the hardest time trying to get the dealership to take it back. Any other further information you could provide or the angle you played to get VW to take it back would be much appreciated. 

stever

Re VW damage claims, the lawyers in the class action suits are claiming that "consumers nationwide paid a premium for vehicles that did not perform as promised while releasing as much as 40 times the amount of pollution as advertised during normal driving conditions". (Business Wire)

Another firm is seeking damages for "improperly inflated purchase prices or lease payments; decreased resale values or residual lease values."

Other firms are seeking punitive damages and "all or part of the ill-gotten profits received from the sale or lease of the recalled vehicles".

Whether or not anyone actually gets damages from VW if they leased or purchased an affected vehicle is another question.

calpoly01

I faced damages in that the value of the car was greatly  depreciated. If I had waited until the end of my lease, I would have been over $12k underwater. 

VW  has been slow in taking care of their existing customers.

I owed $24k and they valued it at $16k. Since I bought a used car owned by VW and went through VW credit (again)...the dealership knocked $4k off the sticker of the used car, added  $6k to the sticker price for being under water and no down payment (($2k down payment credit).

Which left me with a $16k new car loan. (Used car...new loan). They also knocked my interest rate down a full point.

I got out of the lease,  which by the way for whoever said you just get to turn it in,  that's not the case. If you don't pay out of pocket they tack on the negative equity to the next purchase. Brush up.

My local dealership spent a good 2 hours shopping the best loan and finding the best way to work the numbers for me and went further than they had too since VW basically said pound dirt. If you buy a new gas VW...they offer crazy incentives ($4k to $8k) which makes up for what you will probably owe.

I'm  not sure if I just worked with the right general manager or he made no profit on the used Audi A6. He earned a happy and loyal customer (to his dealership...not VW). The dealership worked to make the financing match the valuation of the trade. VW corporate provided little support. My first payment isn't due until January which also helps.

Either way I have a lower payment, love my new used car and contrary to comments on here have the right to sue for damages. 

The actions of VW, cost me money due to the toxicity of TDI fraud. Severe under valuation of there own brand and vehicle that wasn't yet 2 years old.

End of the day....I'm happy (love my audi) and don't have to wait 2 or 3 years for compensation. If it is ever something equatible. 

If you live in so cal....I recommend you give this dealership a try.

Good luck to everyone..but I'm just glad I'm out of my VW.

texases

"I faced damages in that the value of the car was greatly depreciated. If I had waited until the end of my lease, I would have been over $12k underwater. "

This makes no sense. You turn in your car at the end of the lease and walk away, you owe nothing for the actual value of the car, assuming you returned it in adequate condition.

calpoly01

2010 Audi A6...fully loaded....50k miles....gets 32 on the hwy, 26 in the city....good looking and has amenities the VW simply wouldn't have. 

Gas is the same price as diesel and at least I sleep better knowing I'm not pumping 10x the pollution.

kyfdx

calpoly01 said:

2010 Audi A6...fully loaded....50k miles....gets 32 on the hwy, 26 in the city....good looking and has amenities the VW simply wouldn't have. 

Gas is the same price as diesel and at least I sleep better knowing I'm not pumping 10x the pollution.

That's a great looking Audi!

carboy21

calpoly01 said:

2010 Audi A6...fully loaded....50k miles....gets 32 on the hwy, 26 in the city....good looking and has amenities the VW simply wouldn't have. 

Gas is the same price as diesel and at least I sleep better knowing I'm not pumping 10x the pollution.

I would have taken your TDI off your hands at the prevailing book value and still slept like a baby

Yes that A6 does look beautiful !

isellhondas

Those of you who have LEASED your VW diesels should be very happy that you leased.

Your residual is set in stone and can't be lowered if the value has been diminished as a result of this. Just hand them the keys at lease end. Smile and walk away!

kenger1

We are currently leasing a TDI Jetta and they have the residual at the end of our lease being 17.9. I doubt the jetta will be worth that at lease end. I would love to purchase the car at the end of the lease because ill be honest its a great car. But given the depreciation of the car after these tree hugging hippies complained about the emissions I doibt I can convince my wife to purchase the car for thousands more then what it is really worth. That being said I hope VW realizes this at allows customers at the end of their lease to purchase said car for thousands less then the agreed upon contract with them picking up the extra money needed to make up the difference. Of course that will likely not happen with VW's current actions.

carboy21

kenger1 said:

We are currently leasing a TDI Jetta and they have the residual at the end of our lease being 17.9. I doubt the jetta will be worth that at lease end. I would love to purchase the car at the end of the lease because ill be honest its a great car. But given the depreciation of the car after these tree hugging hippies complained about the emissions I doibt I can convince my wife to purchase the car for thousands more then what it is really worth. That being said I hope VW realizes this at allows customers at the end of their lease to purchase said car for thousands less then the agreed upon contract with them picking up the extra money needed to make up the difference. Of course that will likely not happen with VW's current actions.

I think VW will be happy to let you buy back the car at a discount instead of being saddled with a unsaleable car .

Michaell

carboy21 said:

kenger1 said:

We are currently leasing a TDI Jetta and they have the residual at the end of our lease being 17.9. I doubt the jetta will be worth that at lease end. I would love to purchase the car at the end of the lease because ill be honest its a great car. But given the depreciation of the car after these tree hugging hippies complained about the emissions I doibt I can convince my wife to purchase the car for thousands more then what it is really worth. That being said I hope VW realizes this at allows customers at the end of their lease to purchase said car for thousands less then the agreed upon contract with them picking up the extra money needed to make up the difference. Of course that will likely not happen with VW's current actions.

I think VW will be happy to let you buy back the car at a discount instead of being saddled with a unsaleable car .

VW probably has an insurance policy in place to make up the difference between the residual value stated in the lease agreement and the market value of the car. You rarely see lease companies negotiate the buyout value of a car at the end of a lease.

texases

Michaell said:

carboy21 said:

kenger1 said:

We are currently leasing a TDI Jetta and they have the residual at the end of our lease being 17.9. I doubt the jetta will be worth that at lease end. I would love to purchase the car at the end of the lease because ill be honest its a great car. But given the depreciation of the car after these tree hugging hippies complained about the emissions I doibt I can convince my wife to purchase the car for thousands more then what it is really worth. That being said I hope VW realizes this at allows customers at the end of their lease to purchase said car for thousands less then the agreed upon contract with them picking up the extra money needed to make up the difference. Of course that will likely not happen with VW's current actions.

I think VW will be happy to let you buy back the car at a discount instead of being saddled with a unsaleable car .

VW probably has an insurance policy in place to make up the difference between the residual value stated in the lease agreement and the market value of the car. You rarely see lease companies negotiate the buyout value of a car at the end of a lease.

If I was that insurance company I'd be filing a BIG lawsuit against VW right now for fraud. No way I'd want to be on the hook for their transgressions.

Michaell

texases said:

Michaell said:

carboy21 said:

kenger1 said:

We are currently leasing a TDI Jetta and they have the residual at the end of our lease being 17.9. I doubt the jetta will be worth that at lease end. I would love to purchase the car at the end of the lease because ill be honest its a great car. But given the depreciation of the car after these tree hugging hippies complained about the emissions I doibt I can convince my wife to purchase the car for thousands more then what it is really worth. That being said I hope VW realizes this at allows customers at the end of their lease to purchase said car for thousands less then the agreed upon contract with them picking up the extra money needed to make up the difference. Of course that will likely not happen with VW's current actions.

I think VW will be happy to let you buy back the car at a discount instead of being saddled with a unsaleable car .

VW probably has an insurance policy in place to make up the difference between the residual value stated in the lease agreement and the market value of the car. You rarely see lease companies negotiate the buyout value of a car at the end of a lease.

If I was that insurance company I'd be filing a BIG lawsuit against VW right now for fraud. No way I'd want to be on the hook for their transgressions.

Excellent point .... though I wonder if it would make the news. A quiet settlement with an NDA seems to be the right course of action.

urbansurfer

(Jetta Sportwagen TDI 2013) Some good comments here, and as a leasee I'm wondering what my options are going to be this Summer when the lease is up and no settlement details are in place. Sure I can turn the car in and walk away, but I still need a car. My wish would be able to use 'whatever incentive' in helping me choose another car. Without being able to utilize that possible discount, I'd have no leverage in my favor. Then in the future when the details finally trickle out, it will not be as useful to me, because I won't need ANOTHER car at that point. Regardless of the potential customer compensation VW owners may get, this is going to cost me in frustration from personal lost time dealing with it, possible short term car rental and taxes / registration on a replacement car that has a higher price when 'compensation' might've brought a lower, discounted price.

vwfraudsale

When any company willfully sells you anything based on fraud with the intent to fraud!

People are treating this as a standard auto recall, it is NOT.
When a car company accidently builds a faulty part they are obliged to fix it, nothing more, it's done and over take your car go home and shut up.
This VW diesel Scandal is a completely different horse.
When any company willfully sells you anything based on fraud with the intent to fraud you have all the cards and the right to stop making any payments and be fully reimbursed any money previously paid period.
If VW can successfully repair the car 100% to its original advertised condition that does NOT in any way relieve them of the charge that they willfully sold you something with the express intent to defraud you.
Fix or no fix they must give you all your money back to fix the fraud charge not the car and make you whole as though it never happened, the buyer is not responsible for any milers put on the car since it was fraud from day one. If you stop your payments and VW is dumb enough to hit your credit report than you can suit them for that also.
I would encourage anyone to work through the court system on this basis not on a fix the car recall, but you can simply quit making payments if you're willing to enter the fight. THIS IS willful premeditated fraud with the intent to fraud! And everyone should quit talking about fixing the car or anything else.

vwfraudsale

I own a 2014 Passat and a Leased 2014 Touareg executive and i intend to drive them until i get all my money back, VW would be wise to give it sooner than latter while the car has more value. I hope VW stalls long enough that I can put 100K miles on them and get 100% of all my money refunded.

kyfdx

I would encourage anyone to work through the court system on this basis not on a fix the car recall, but you can simply quit making payments if you're willing to enter the fight.

This is known as cutting off your nose to spite your face.

Don't ever stop making your payments. Even if you eventually win (doubtful), your credit will be wrecked. The federal government is doing your court fight for you. Why jump in, until it's resolved?

Mr_Shiftright

We'll know a lot more in a month or so. I think all current VW TDI owners under lease should at this point just plan on letting the cars go come turn-in time.

isellhondas

Yep, just walk away and SMILE!

carboy21

kyfdx said:

I would encourage anyone to work through the court system on this basis not on a fix the car recall, but you can simply quit making payments if you're willing to enter the fight.

This is known as cutting off your nose to spite your face.

Don't ever stop making your payments. Even if you eventually win (doubtful), your credit will be wrecked. The federal government is doing your court fight for you. Why jump in, until it's resolved?

Unless you have plenty of time on your hands and want your credit rating destroyed, its not worth stopping payments.

stever

I suppose if you shopped around enough, you might find a sympathetic judge who would let you make your payments to the court pending some resolution.

texases

I still don't understand how someone leasing was financially damaged. Morally outraged, ok, but not financially damaged.

stever

I'm sure some lawyer somewhere could come up with an argument.

Like, you're having to pay rent on a car that you leased under false pretenses. Had you known your vehicle was a gross polluter, you would have leased a Prius.

kyfdx

Is that your advice? To hire a lawyer?

stever

Skimming back in this discussion, I count eight VW diesel owners who are looking for ways to get out of their lease. It looks like one owner did get out of theirs (with no damages paid).

So this isn't merely a hypothetical being kicked around but real people unhappy with VW and unhappy that they didn't get what they paid for, all because of active fraud being committed by VW.

Should be easy enough to get a free legal consultation, especially since there must be a hundred lawyers already suing VW. Just look for a screamer ad that goes like this:

"Contact my office for a free consult on how you may be able to return your car and receive a new car or your purchase price back." (link)

The original poster hasn't been back - maybe his lawyer told him to shut up.

Would you rather just let VW off the hook?