mwoc

When I leased my car last June the difference in money factor was significantly lower with US Bank compared to Audi Financial. The potential increase of 1% in the residual was far outweighed by the drop in the interest portion of the lease.

Greystoke

TDI owners won't agree with your assessment since the preliminary settlement was announced. AoA will end up paying US Bank $3200 per car for those who used them instead of AFS.

Just saying...

Grey

snagitseven

it doesn't matter if the car was leased, financed or purchased outright. The Mag-Moss Act of 1973 made it illegal for a manf. to deny warranty coverage in any state unless work was done improperly by a non-dealer. As a result, leasing companies or lenders cannot require where service is performed. However, the dealer would have to perform any repairs in order for Audi to cover any cost under the warranty but anyone can perform regular service - even the owner (so long as a maintenance log or proof of service and receipts are kept).

mwoc

How does your statement have any bearing on whether to purchase Audicare?

Greystoke

It doesn't but neither did yours.

Grey

mwoc

I'm sincerely curious - why do you think having a lease through Audi Financial is somehow better than 3rd party if an unlikely event such as the one with the diesel scandal? I take it you have or had a TDI and are upset about it.

Greystoke

The TDI lessors who chose to lease through a company other than AoA will not be paid the $3200 in settlement money. Their bank can submit as an owner but the lessor is specifically excluded in the settlement docs.

Had they leased through AoA they would fall under one of the lessor categories and received $3200 in settlement money. If on the rare chance they bought out their lease from their independent bank then timing factors will take precedent for what compensation they may get.

The independent (from AoA) bank is the owner of the vehicle so for the purposes of providing monetary compensation as part of the settlement it is that independent bank who will get the funds.

All of this gets me back to my point...use an independent bank at your own risk...there may be situations which arise where AFS may have been a better choice.

Grey

snagitseven

I'm pretty confident the payout would not go to a bank that financed the car - the purchaser is the owner, not the bank. The bank is simply a lien holder if the loan were to go into default. Leasing is different as the car is simply "rented" by the lessee, who own the car, so any payout would have different rules depending on the lessor.

Greystoke

I agree with point one on purchase scenarios.

Look to the last paragraph of page 8 for the effect of using financing other than AFS to those who leased an otherwise eligible TDI...

http://www.vwcourtsettlement.com/en/...t%20Notice.pdf

Grey

mwoc

So if you had a lease on a TDI car and were still in the lease you could turn the car in at the end of the lease per your agreement and still be paid the $3,200? I totally understand the payout if you were to purchase your car at the end of the lease period as the car has a diminished value due to the scandal. Prior to lease end the lessor does not have an interest in the car - only the lessee. If the vehicle was financed on a purchase it would be a different story.