Automotive

Lease Transfer Question

  • Last Updated:
  • Sep 15th, 2021 1:42 pm
[OP]
Deal Fanatic
Feb 14, 2006
9971 posts
1322 upvotes

Lease Transfer Question

Hi all,

I took over a VW lease last year and my last payment was yesterday, I looked at my bank statement today and saw that I was charged for four extra payments.

When I called VW finance, they said the original lessee had an agreement of 4 deferred payments with the dealership which I guess ended up being my responsibility. However, this was never disclosed to me verbally or in the lease transfer agreement/contract that was signed at the VW dealership. The # of payments I made for the amount outlined in the agreement was met and the additional amount is nowhere to be found.

Does anyone have any experience or advice on how to go about this? I am going to go in person to the dealership some time in the next few days, seeing that a phone call isn't going do much, and I want to be as informed as possible. Appreciate the help.
16 replies
Deal Addict
Sep 28, 2006
1156 posts
1151 upvotes
Toronto
If I understood correctly, contact the person who was the initial leasee of the car.

If they are honest, they will return the money to you. Ive had a good experience with transferring a lease to someone, who came back to return me a month's payment, when it was taken from my account, and they already had possession. Stand up guy who ran a successful business.
Sr. Member
Feb 10, 2008
615 posts
484 upvotes
As part of the transfer the other party should have also had to give you the original lease documents they signed with all the terms. Was this 4 extra deferred payments in that agreement anywhere? If so then you may be out of luck other than contacting the original lessee and see if they would pay you back.
Deal Expert
User avatar
Jul 30, 2007
31870 posts
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Toronto
4 deferred payments are unheard of, except for covid offering in 2020. Did you do your due diligence when calling into vwfs or getting an account status statement prior to taking over ? Never ever trust what the original owner says to you.

For example -
https://m.vwwaterloo.com/en/special-off ... irect=true


If you did your due diligence, you would have known by counting # of payments made to date.

I doubt the original owner will even take your calls, imo. I sure hope you did not pay the lease transfer fees as well.
[OP]
Deal Fanatic
Feb 14, 2006
9971 posts
1322 upvotes
Thanks for the advice. The other party did not give me the original lease document (dealership never mentioned anything to give me a copy, etc), I looked at the lease agreement I was given and the remaining # of payments matched what I expected to pay, ie. from the date of takeover to the lease end date. No mention of these deferred payments.

It seems like the 4 deferred payments were part of the 90 day deferral program since VW Finance said it started Apr 2020. However, the lease began in 2018 and is ending now, so maybe it was a special that the dealer offered.

I never thought of calling VW Finance prior to takeover for an account status since I would expect the # of payments remaining on the agreement to reflect what they already paid, and not have any "hidden" payments like this. I was thinking that if there were 4 deferred payments, it should be reflected on the agreement.

Fortunately I did not pay any takeover costs, they covered all fees to transfer the vehicle over to me. Regardless, this caught me by surprise and is something I did not expect to see.
Deal Expert
User avatar
Jul 30, 2007
31870 posts
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The dealer would have nothing to do with any payments being deferred . Payments are structured by vwfs, if they are not helping you much now, I cannot see they will do anything with those payments.
[OP]
Deal Fanatic
Feb 14, 2006
9971 posts
1322 upvotes
booblehead wrote: The dealer would have nothing to do with any payments being deferred . Payments are structured by vwfs, if they are not helping you much now, I cannot see they will do anything with those payments.
Well, I guess VWFS not being helpful at all once again is no surprise, I previously had problems they deflected to the dealership.

I will reach out to the bank to see if anything can be done as a last resort. It's crazy how this deferral wouldn't be mentioned anywhere.
Deal Guru
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Jul 12, 2003
12352 posts
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Toronto
I feel you OP, that's the first time hearing this happens.

For VWFS, they wouldn't care who pay for it aslong as someone did, which is now you. They will not help you to chase the $ from the original leasee, it is totally your call.

I bet you are out of luck if the other party is ignoring you and it is a waste of time to take legal action for probably 2-3k.
Retired Forum Moderator February 2009 - June 2015
Sr. Member
Nov 13, 2016
826 posts
454 upvotes
I believe your contract with VWFS should clearly state how many payments are due and that should include any deferred payments. You should contact VWFS and demand an explanation of why you should be responsible for anything other than the contract. Take it to the ombudsman if required.

Good luck.

CD
Deal Addict
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Jan 14, 2007
4581 posts
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GTA
I agree, if the original "owner" had opted to defer payments when that was being offered at the onset of the pandemic this should have been disclosed to you by them but failing that it should have shown up on the agreements you would have both had to sign.

I would just contact VWFS today and express your concern and ask them to show you where in the contract it stated that you agreed to pay this "extra" amount. If that fails, I'd certainly go after the original "owner".
Deal Expert
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Jul 30, 2007
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the issue here is if another person is assuming the original leasee's obligation, vwfs sees it as the next person is to assume all risks and obligations of the existing lease terms and agreement. Therefore, if OP failed to check the unpaid balance obligation, then it simply falls on OP.
Deal Addict
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Jan 14, 2007
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Unfortunately for the OP that is correct. The OP essentially agreed to assume all liability for the lease completely absolving the original "owner". This can also work in your favor though as you would now be entitled to get any security deposit back, if applicable, at lease end.
Deal Expert
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Jul 30, 2007
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agree ... a consolation prize if you will to get one month back in security deposit.
[OP]
Deal Fanatic
Feb 14, 2006
9971 posts
1322 upvotes
Thanks for all the opinions, I have been reading the lease agreement and it does have an umbrella statement that I am only responsible for everything on the original lease agreement as far as I can understand - which is reasonable.

However for this deferred lease payment, I feel it is only reasonable if it is disclosed, as VWFS should not say on the agreement that x # of payments are owed if really x + 4 payments were owed. If it isn't anywhere on the original lease, nor in my lease transfer agreement, anyone can make up anything. There has to be another document somewhere stating that 4 payments were deferred.

The lease was paid biweekly so 4 payments amounts to only 2 months worth of ownership.

I still am going to pursue all options regardless. Hoping for the best.

Edit: I called VWFS and pressed further, seems like there are other accounts in the same unique position as me given the deferred payment incentive was new - rep asked if these deferred payments were disclosed to me and I said not verbally nor on paper anywhere. She will escalate my request for help. Hoping if anyone is in the same shoes as me that this is some good news that it will be looked at.
Newbie
Aug 26, 2021
1 posts
I HAVE SOME PROBLEM ! original lessee defer the 3 months payments, but VW didn't disclosure it!
[OP]
Deal Fanatic
Feb 14, 2006
9971 posts
1322 upvotes
Just to update, VWFS did an investigation and issued me a refund today for exactly what I was owed.

It was actually a surprisingly pleasant experience.

Hope this data point gives some peace of mind for those in the same situation.
Deal Expert
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Jul 30, 2007
31870 posts
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the other lesson is to find out the # of payments made to date when you are to assume a lease

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