Fdvigna

Interesting... quickly searched google and found the US equivalent: LeaseTrader.com - Car Lease - Lease Assumption - Short Term Leases

Edit: There's a bunch of companies like that... google is your friend... another example: http://www.swapalease.com

Good luck!

Jay757

Someone correct me if I'm wrong but I heard unlike BMW FS, VW Credit / AFS makes you (the original leaser) liable, if the other party fails to make their monthly payment when using lease swapping services as mentioned above.

I contacted AFS a few weeks ago to ask about turning in my lease early, as I took a new job overseas and wouldn't be driving the car nowhere near as much. Below is the official response from them.

" Dear Valued Customer,
Thank you for contacting Audi Financial Services. Per our conversation, here are the options
available to you:
1. Purchase the vehicle from Audi Financial Services
You may choose to purchase the vehicle. Audi Financial Services requires the full payoff amount
and lease purchase documents. Financing options may be available.
Not all states are eligible for purchase. Please visit www.Audifs.com/MyAccount or call us to
obtain a payoff amount and additional information.
2. Talk to your Audi dealer
An Audi dealership may be interested in purchasing the vehicle from Audi Financial Services. A
representative from the dealership would need to contact us directly for information regarding
the dealer purchase process.
3. Lease Assumption
You may transfer the contract payment obligations to a known, creditworthy candidate. Your
name would remain on the account, and you are responsible for payment if the candidate does
not make the contractual payments. Depending on your type of contract and the state in which
the vehicle is registered, taxes or fees related to this transfer may be assessed. Please contact
us for additional information.
4. Turn-in at End of Lease
You may return the vehicle within 30 days to the maturity date without incurring any additional
fees or penalties. However, as your contract stipulates, you are responsible for remaining
payments, taxes, any over mileage, excess wear and use, and your disposition fee. Please
contact our End of Lease department at 866-277-8191 for additional information.
5. Early Termination
A leased vehicle return outside of 30 days from the lease maturity date is considered an Early
Termination of the contract. The account must be current at the time of turn-in. If you choose
to terminate your lease early, you may have to pay a substantial charge. Please contact our End
of Lease department at 866-277-8191 for additional information.
6. Surrender the Vehicle
If your account is not current and you choose to return the vehicle this would be considered a
voluntary repossession. A voluntary repossession, much like a repossession, will be reported to
the credit bureaus, and you may have to pay a substantial charge. Please see your contract or
call us for further details.
If you have any questions, please contact our Customer Care Department between the
hours of 8 a.m. and 10 p.m. Eastern at 888-237-2834.
Sincerely,
Audi Financial Services
Customer Care "

Good luck, I hope your situation improves.

markcincinnati

FUGLY, just FUGLY -- it would be worse if you had paid cash for the car, but at least you would not be obligated to make any more payments on it. But, if you needed the "asset" and you sold the car you would very likely take a 5-figure hit. You're caught between a rock and a hard place. If you lease for 12 months (which is incredibly expensive), you would find your situation might be a little better, but those first 7 payments (of 12) would have been beyond our ability to comprehend the "why" part of the equation. Every dealer has a customer (or more than one) who gets a new high-buck car the instant they come out, cost be damned. At my dealership there are those who will buy an R8 when they first come out, then when the RS7 arrives they get that, then an S8+ and on and on. Sometimes these folks don't keep their cars for 12 months. They pay to play -- and, one would assume, they have the ability to afford it without harm. Many of us could "get such a deal" done twice and then, that's it, some kind of restraint would kick in and we would say "what was I thinking?" The types of folks who do this over and over and over are major league sports figures, MD's and lawyers (partners). We have the Cincinnati Reds and the Bengals -- and regardless of your opinion of the teams' merits, the players do have the ability, cash wise, to make such choices. One or two defense attorney's and a couple of surgeons can make these kinds of purchases without (seemingly) any financial remorse.

For years, my wife and I leased a new Audi every 27 to 39 months -- sometimes we traded them in early. We were fortunate to never have been in the circumstances described by the OP. I would neither encourage nor discourage leasing (or buying) every 3-ish years. My last lease was 42 months, and I believe I made 44 payments due to the timing of my 2018 S4's arrival. Previously, I dumped out of a 2012 Acura (my one transgression) at month 27 (of a36 month lease). I had to pay a $1,500 difference between the trade in value and the get out of the lease 9 months early charge. I simply didn't want to stay in my Acura any longer and $1,500 early out charge seemed low enough to be not unreasonable.

I bought my current S4 -- first purchased car in 40 years -- I put 20% down. LT 3% cash cost. So far, no regrets -- we'll see how I feel after, say, 55,000 miles. If I had to bail now, I'd probably end up with nothing (or maybe less than nothing) due to depreciation. But, the plan was to keep the car at least 4 or 5 years since it was the first year of a new gen (B9) and Audi has this practice of releasing new generations about every 8 years. The mid-cycle face-lift may include some new "avionics" and may include a bump in power and torque, but otherwise will be just a mildly different B9. Would I keep the 2018 until the B10s came out, maybe. Maybe not.

Our OP had some crappy circumstances befall, of that there should be little debate and perhaps even a lesson for the rest of us.

JohnEnglish

I don't know about the US, but in Canada this is not the case. I received a letter from VW Credit Canada (who handles Audi leases in Canada) that said that the other party had been fully released from any and all obligations and I was now fully responsible for the lease.

kentr

I'm in a situation wherein I would "like" to get rid of my 2017 A4 Quattro early (premium plus in pristine condition with less than 5K on the odometer) - note, I said "like" to get rid of it not "must" get rid of it. I have 17 months to go and wondering if they will negotiate a price to turn it in early that does NOT require paying off the entire remaining amount due (balance of lease payments) or if they take a hard line stand.

If they were to insist on paying all remaining payments, I would pass on that opportunity - why pay off the balance and give the car back to them 17 months early so they can turn around and sell it for the current value? Before I'd do that, I'd leave it parked in the garage for the next 17 months and let them deal with the further depreciated value down the road. I know it would cost me "some" money to do this but that portion of the equation is not a deal breaker for me - it's just money - I know that sounds arrogant and I don't mean to come across as a jerk but it's factual.

I am not interested in getting involved with any type of "lease swap" or "assume my lease" situation. Just walk into the dealership, hand them a check and keys and walk out the door.

I know there must be some mutually agreeable financial way of accomplishing this so I'm looking for input from anyone that's traveled this road.

As an aside, when I got to the surrender date for my BMW, the dealership didn't waste anytime offering me the "opportunity" to either just hand them the keys OR purchase it for quite a bit less than the residual value (I passed on that and gave them the keys). I suspect there's comparable "wiggle room" with Audi residual value component.

So, anybody travel this road? If so, how did it go for you?

mplsbrian

I have only heard of dealerships doing this when, as part of the deal, they are handing you keys to a different, brand new Audi right back.

I don't know how common that sort of thing is with 17 months left on the lease but it happens all the time when there is 3, 4, 6 months left on it: people want to get into their next car before their hand is forced, nobody wants to be limited to the paint colors/options/etc that happen to be on the lot on the day of their lease turn-in. Similarly, Audi can be flexible on extending your current lease by a month or two when you have a factory order in for your next one.

I haven't heard of a dealer buying out your lease outright without selling a car as part of it, but maybe someone else here has. Either way, it's probably free to call up your salesperson and ask.

njspeedfreak

Buy the car out so you own it, then turn around and sell it or use as a trade.

Or more realistically work with a dealer who will do that for you so you can just net out with something new. It's still going to cost something since your lease was based on the AVERAGE depreciation over the term period and you have only used the most expensive part of that. But it would be much less than the total of 17 remaining payments.

kentr

Thanks for responding guys! I fully "get it" when it comes to Audi dealer "flexibility" as long as you are buying/leasing another car - they see more money on the horizon so they can play the game more easily. I don't want to "buy" it and then screw around trying to sell it or trade it in - just want to walk away after coughing up some extra money.

As suggested, I guess the best thing to do is contact them to see what their position is even though it's likely to create a feeding frenzy at their end because they won't HEAR what I'm saying about I'd "like" to get rid of it and will automatically presume I have financial problems and "need" to get rid of it.

I'll fire off an email......

superswiss

A dealer might be interested in buying the car back at its current market value. Maybe not an A4 as they are a dime a dozen, but every 6 months or so I get an inquiry from my dealership if I'd like to sell them my RS5. I've so far refused as I haven't decided what to get next. In my case I paid cash for the car, so they wouldn't have to buy out a lease or loan, but in the situation where there is a lease or loan, they would buy it out and if you are underwater you would obviously have to come up with the difference.

If you want to get into a new car, most dealerships will let you trade a leased car. They'll handle the buyout and of course just as above if you are underwater you'll have to pay the difference or roll it into the next lease/loan.

Lease swap is a bad idea if you leased through VW/Audi as they don't release the original lessee of the liability.

Alternatively, here in California you can buy out a lease and you have 10 days to sell the car to avoid paying sales taxes on the buyout. Only the buyer will have to pay the tax. If you miss the 10 day window both the seller and buyer have to pay tax. The transaction has to be handled correctly for the tax exemption. There's a name for it, but I don't recall at the moment.

Worst case is buying the lease out, pay the tax and then sell/trade the car.

kentr

Thanks for the input superswiss - email to dealer just sent - this should prove interesting