Residual Value Question

whitwilson89 · August 2016

My lease is up in the next couple of week. I had a 36 month lease, with a residual of $12,479. I went to the Volkswagen dealership I leased the car from today to talk numbers and decide whether I wanted to lease again or purchase. When discussing purchasing I was given the selling price of $13,942. This was of course coming from the guy in the next office looking at financing, and was being brought to me by the salesman. When I asked why this number was higher than my residual he went and got the finance "person" and brought him in the office. I asked why this number was higher than the residual and was told that the residual value is the price that I would have to pay, in cash, if I were to buy the car directly from Volkswagen. This is not the price I could actually finance the car for from the dealership. Is this the case? I feel like he is trying to pull one over on me. Help would be GREATLY appreciated. I left the dealership VERY frustrated because the numbers were much higher than I was expecting--- both for a new lease and for a purchase.

kyfdx · August 2016

whitwilson89 said:
My lease is up in the next couple of week. I had a 36 month lease, with a residual of $12,479. I went to the Volkswagen dealership I leased the car from today to talk numbers and decide whether I wanted to lease again or purchase. When discussing purchasing I was given the selling price of $13,942. This was of course coming from the guy in the next office looking at financing, and was being brought to me by the salesman. When I asked why this number was higher than my residual he went and got the finance "person" and brought him in the office. I asked why this number was higher than the residual and was told that the residual value is the price that I would have to pay, in cash, if I were to buy the car directly from Volkswagen. This is not the price I could actually finance the car for from the dealership. Is this the case? I feel like he is trying to pull one over on me. Help would be GREATLY appreciated. I left the dealership VERY frustrated because the numbers were much higher than I was expecting--- both for a new lease and for a purchase.

When dealers get involved in the buyout process, they add costs. However, it is very possible that VW Credit will not finance you on a lease buyout. To pay them cash for the car, you may have to arrange financing on your own, through a bank or credit union. But, call VW Credit first, to see if you can do the deal directly (with their financing).

Alternatively, check with another dealer, to see if they can help you, without extracting more money for themselves.

Michaell · August 2016

kyfdx said:

whitwilson89 said:
My lease is up in the next couple of week. I had a 36 month lease, with a residual of $12,479. I went to the Volkswagen dealership I leased the car from today to talk numbers and decide whether I wanted to lease again or purchase. When discussing purchasing I was given the selling price of $13,942. This was of course coming from the guy in the next office looking at financing, and was being brought to me by the salesman. When I asked why this number was higher than my residual he went and got the finance "person" and brought him in the office. I asked why this number was higher than the residual and was told that the residual value is the price that I would have to pay, in cash, if I were to buy the car directly from Volkswagen. This is not the price I could actually finance the car for from the dealership. Is this the case? I feel like he is trying to pull one over on me. Help would be GREATLY appreciated. I left the dealership VERY frustrated because the numbers were much higher than I was expecting--- both for a new lease and for a purchase.
When dealers get involved in the buyout process, they add costs. However, it is very possible that VW Credit will not finance you on a lease buyout. To pay them cash for the car, you may have to arrange financing on your own, through a bank or credit union. But, call VW Credit first, to see if you can do the deal directly (with their financing).

Alternatively, check with another dealer, to see if they can help you, without extracting more money for themselves.

Years ago, we leased a VW New Beetle. At the, end of the lease, we decided to buy it. Worked with VW Credit directly and the set up the financing without involving the dealer.

Give them a call; perhaps they still do that.

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