Vegas-roadster

I'm looking to possibly purchase a TT from a person whose lease does not expire until next year. Is that even possible? How is it done? He is on the east coast and I am on the west coast.

porttac

How can you buy a car from someone who does not own it? Not sure of the details, but it would have to be worked out with the dealership first, at a fixed price. Talk to the lien holder.

SCarGuy

Technically possible.

Any Audi that is leased, can be purchased during the lease term, at any time. Lessee would need to call AFS, give them current mileage, and they will give him a buyout amount valid for 10 days. Check gets cut, title gets processed, and it’s the buyers car.

Dealership is not involved. It’s between lessee and lessor, as they are the parties who entered into the lease contract.

porttac

Sounds reasonable!

MCRN

This x1000 and I would also talk to your local DMV or title transfer office for further clarification. He does not own the car, he only holds a lease interest in the car via the lease agreement - Audi Financial services owns the car. I am nearly certain that you cannot buy the car directly from them, they are a financial institution and not a car dealer in your state licensed to sell cars, transfer titles, etc. All of those activities requires a state level dealer license.

Again, I am not 100% but I am pretty sure that even if you send Audi FS the check in your name with the payoff quote, the only thing they will do is removed their 'lien' on the title and release it to the original leasee. He will then have to transfer the title over to you via DMV or title transfer office. Also keep in mind that there are states where both transactions are a taxable event, him buying the car from Audi FS and you buying the car private party from him when you go to register it (Texas is one such state).

One option could be getting a dealer involved, which they may or may not do for a processing fee - though that might be a tough sell to a dealer since there is not much in it for them. This would also avoid the double taxation.

USe-car

Just a hint. If you've ever called AFS, you know what a hassle it is. Phone rings 60-70 times before they answer and even then, it's a recording. You wait for as long as half an hour before a live person comes on. It's that wait every time that they have to transfer you. When you finally get someone, ask for "end of lease buy out" department and wait for another 20 minutes. Eventually, someone will help you. Bottom line is AFS is paired VW Credit and they suck at customer service.

Huey52

Indeed. Recently a friend of mine bought out a lease and then had to wait almost two months for the title even tho' they were awaiting buying a new VW (VWC did provide a letter upon buyout but the title is what matters). Caveat emptor.

Vegas-roadster

Thanks to all. Great responses. Had not thought about sales tax being charged at the buyout. If it was charged to me, then my state recognizes that sales tax has been paid and will not tax me again if the tax rate is as high as mine. If not, I'm only charged tax for the difference. If it is charged to the lessee, I guess it's his problem but he might opt out since I'm guessing his asking price is near residual value. I was going to ship the car to me so I would not need to register it in his state and I was assuming no sales tax required until I registered the car in my state. I guess it is possible that they might want to tax the seller AND me. Turns out we could not agree on a price, so its no deal for now but I left the offer open so he could call me later. Sounds like AFS is a real hassle but I'd be going through an independent broker provided by CarGuru so it's their problem. I'd be paying cash so no issues on my side. I'm going to ask my dealer sales manager next time in.

Vegas-roadster

When I bought my present TT via AFS it took 3 months to get the title when I paid the loan off way ahead of schedule. AFS just sent me a lien release and told me to get the title from California DMV myself. (I bought the car from a SoCal dealer. Prices are waaaay better than in NV.) I called AFS and complained it would be far easier for them to request the title since they had an experienced staff to get it done and after a lot of friendly cajoling they finally agreed. Waiting for the title is not an issue if you are dealing with an honest broker since I don't need the title to register it in NV, just a bill of sale.

Huey52

We're not United States when it comes to vehicle registration requirements.

My friend got the same response from VWC that they should pursue the title themselves, or the dealership offered to do it for $300!! Ultimately just waited and paid cash for the new VW. Apparently VW has a very strange way of title-data handling but are purported to be now moving into the mainstream.