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VW Passat Complaint - "Retail" Lease - 2006 VW Passat
2006 VW Passat - Complaint
I leased a 2006 Passat from Palisades Volkswagen, in Nyack, NY. It was a 4-year lease. During those 4 years, it had numerous repairs (fuel pump "melted", both boot blocks cracked, coolant system crack, and then your various brake jobs, 8 tire replacements, and more -- I drive a LOT). Every time I diligently took it in for service, it had recalls to be fixed. While I had VW's before, this Passat seemed to be laden with defects. With 9 months left on my lease, faced with more repairs, I talked to my sales person and voiced my dissatisfaction, wishing to turn the car in early and pay the penalty. I wanted to be rid of the car and its headaches. He, now the finance manager of that dealership, told me to turn in the car with the remaining payments, and that would be it.
When I called VW Credit to get the exact amount of payments left, I was surprisingly informed I could not turn in my car, regardless of my agreement to pay the penalty, because it would then be considered a "Voluntary Termination" and would adversely affect my credit. I had never heard of this, nor had the salesman who leased me the car when I called him to confirm! According to VW Credit, I have to wait until 90 days before the lease was up, and that was the earliest I may turn in the car, even paying the penalty! I made it painfully clear my dissatisfaction, and my intent to purchase another car, and pleaded to turn in this car to be rid of it and its headaches.
Had I leased another VW, they were ready to let me break the lease. (I had broken 2 previous leases when I moved up into another VW.) But since I was not, the same consideration vanished. I was a loyal VW customer for YEARS, and touted the brand when everyone else I know steered clear of it. Had they looked at their policy and realized that they could recoup the value of the car more quickly on their lot than in my garage during the next six months, they would see that allowing me to turn it in -- paying a significant penalty -- would be more beneficial to them, and a win-win for both. Now, I will use my connections to virally spread the word of my dissatisfaction so that future VW customers can make a more educated decision on whether to do business with VW.
In this economy, with the magnitude of auto choices available, VW needs to brush up on their understanding of brand management and customer loyalty. When customers vanish, so does the brand.
When I called VW Credit to get the exact amount of payments left, I was surprisingly informed I could not turn in my car, regardless of my agreement to pay the penalty, because it would then be considered a "Voluntary Termination" and would adversely affect my credit. I had never heard of this, nor had the salesman who leased me the car when I called him to confirm! According to VW Credit, I have to wait until 90 days before the lease was up, and that was the earliest I may turn in the car, even paying the penalty! I made it painfully clear my dissatisfaction, and my intent to purchase another car, and pleaded to turn in this car to be rid of it and its headaches.
Had I leased another VW, they were ready to let me break the lease. (I had broken 2 previous leases when I moved up into another VW.) But since I was not, the same consideration vanished. I was a loyal VW customer for YEARS, and touted the brand when everyone else I know steered clear of it. Had they looked at their policy and realized that they could recoup the value of the car more quickly on their lot than in my garage during the next six months, they would see that allowing me to turn it in -- paying a significant penalty -- would be more beneficial to them, and a win-win for both. Now, I will use my connections to virally spread the word of my dissatisfaction so that future VW customers can make a more educated decision on whether to do business with VW.
In this economy, with the magnitude of auto choices available, VW needs to brush up on their understanding of brand management and customer loyalty. When customers vanish, so does the brand.
Comments:
Posted by LadyScot on 2009-09-20:
You will find that with ANY vehicle maker. You avoided the early termination by staying with the same company so your lease info was transferred to another car. If you return a car on lease or mortgage, it goes against your credit just as a voluntary repo does IF you are not upgrading with the same company.
You seem surprised that a lease would go on your credit. You must have good credit to get one. Why wouldn't your credit be an issue to the leasing lender?
You seem surprised that a lease would go on your credit. You must have good credit to get one. Why wouldn't your credit be an issue to the leasing lender?
Posted by spiderman2 on 2009-09-20:
Why don't you just buy a car? Leasing a car for personal use really ties you down, as you found out. You are still liable for all repairs and the company controlw when you can buy a new car. Also, for someone who drives "a lot" limited mileage probably isn't a good idea. The only scenario I have seen where a lease is a good idea is for a business. Buy a car you can afford and you will have much more control over your life.
Posted by KelleyBriggs on 2009-09-21:
I do drive a lot for business, or I did when I got the lease. It seemed to make more sense to put the mileage on someone else’s car. And I had two VWs before this one, no issues. Didn't understand I couldn't break this lease because I had done it two times before, but -- you’re right -- it was to get into a newer VW. Guess it makes sense they would try to keep me as a customer, but seems like an unprofessional way to do it. It really makes no business sense to have it sit in my garage for 6 months, when it could be on their lot selling!
Yes, I do have good credit. Neither I nor the salesman who sold me the car (or so he claimed) knew of this detail in a "lease retail agreement", I thought it was the same type of lease I had with the two other cars. But with increased mileage allowance, it must not have been. This has been a horrible experience with this car and VW now in general in the way this was handled. I consider it is my right to inform others so they can make the educated decision as to whether to do business with VW or not. And as a former VW brand champion, I sadly now choose the latter.
Yes, I do have good credit. Neither I nor the salesman who sold me the car (or so he claimed) knew of this detail in a "lease retail agreement", I thought it was the same type of lease I had with the two other cars. But with increased mileage allowance, it must not have been. This has been a horrible experience with this car and VW now in general in the way this was handled. I consider it is my right to inform others so they can make the educated decision as to whether to do business with VW or not. And as a former VW brand champion, I sadly now choose the latter.
Posted by LadyScot on 2009-09-21:
Did you ever read the agreement? The little bitty disclosures?
Posted by PepperElf on 2009-09-21:
though technically racking in the miles on "someone else's car" can cost you more than getting your own car can
Posted by klobbersaurus685 on 2009-09-23:
I have leased 3 VWs and I read the lease agreements. They aren't that hard to understand. if you are driving many miles you shouldn't lease anyway. It's really expensive if you go over the miles.
Posted by KelleyBriggs on 2009-09-23:
The salesman who leased me the car, had leased me the two previous cars, and said (verbally) this lease was the same. And yes, I read it, but very quickly, because it seemed the same. Even now, 3 years later, he was surprised that I couldn't turn it in, said he had never heard of this (or at least faked it well). And thanks, klobbersaurus685, for insinuating I am stupid -- I didn't find it easy to understand, and I am a fairly intelligent individual. My lease arranged for many miles, and I didn't go over. At least I understood math enough to be able to calculate that correctly. I was hoping for helpful feedback, not reprimands.
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