Hi All- Thought I'd run this past you all before I go make a fool of myself...we have a buyers option on a 01 Jetta GLS. It has 59k miles and is in good shape (no exterior damage other than a ping in the driver's door from someone else opening their door into it and a crack on the plastic grill). I REALLY want out of this option but I have 5 more months then a buyout on this. I'm interested in selling it outright for about $9,000, which would be just enough to covr what I owe- no profit! :-) My question is, does it sound insane for me to try to sell a car that is 3 years old and has 59k miles for $9,000?
You don't say where you are located, which makes a difference. In any case, if you are thinking about selling this car on your own and then paying off the dealer or leasing company, think again. You do NOT have title to the car - it is owned by the leasing company. The best you could do is line up a buyer, make a deal with the dealer to buy out the lease, and then close the sale. Bottom line is that you will need the dealer's (or leasing company) cooperation.
You don't say why you want out of the this lease. If it is to buy another VW product, and from the same dealer, they will probably make a deal. (I have leased my last 4 VWs, and have only kept one for the full term of the lease.) In any case, you can ask them to tell you what it would cost to buy out the lease today. The buyout amount should be somewhat less than the residual price plus the remaining payments.
Also, if you are in Canada (as I am) be aware that you would get hit for GST (tax) on the buyout price if you but it and resell it privately. That's because GST is not charged on the purchase price at the start of the lease, but only on each monthly payment and then on the buyout price at the end, if you buy it. If the dealer resells that car after the lease they can recover that tax, but as an individual you can't. 7% on top of whatever is owing...
My suggestion is to wait. Five months isn't that long.
Why? I did this with an 02 Golf GLS TDI. I simply called up VW and got the buyout, then wrote them a check. At that point the car was mine, and I promptly sold it privately. I could have just as easily had my buyer write a check to VW - they don't care who the buyer is. The whole operation was quite painless, and VW overnighted the title paperwork as soon as they got my (certified) check. A valid point about the sales tax though, I had to pay sales tax on the buyout to VW. The Government is gonna get their money one way or another!
To get an idea of what the car is worth, try the various on-line valuation sites. Edmund's, Kelly's, etc. FWIW, I sold the Golf with 30K on it when it was exactly two years old for $15K, but Golf GLS TDI 5spds are somewhat rare and desirable. And it was in mint condition. A Jetta GLS will not hold it's value nearly as well.
I tried this with VW Credit Canada less than a month ago. They refered me to the dealer.
As an aside the dealer was very cooperative.
In any case, my point was that you can't legally sell the car until you've completed the buyout, so you could be out of pocket the total amount until the sale closes. You can't sell the car first, transfer ownership and deposit the cheque, and THEN pay off the lease...
Technically, what you're saying is true, Al, but as a practical matter, it's no problem at all to find an third-party buyer and cash out of your lease that way. The leasing company really wants their money, they don't want the car back at the end of the lease. It's very easy, and very commonly-done, to sell to a third-party in the way that Crystal describes. But yes, you do have to clear it with the leasing company first, and you'd better make damn sure your sale price covers 100% of the costs you're going to have to pay to terminate the lease.
Sure seems to me that an '01 Jetta with 59k ought to be worth more than $9000. Yikes. Someone's going to get a hell of a deal.
You've been given some good advice from others here....but also make sure you negotiate with the leasing company the early termination fee that applies by getting out fo the lease before your contract is up. This can be approx $400. $9000 sounds like its on the low side for a 2001, which means you can easily sell it if that's all you want out of it. Maybe the VW dealer will take it off your hands. Go to
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