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Prices Paid: Buying & Leasing Experiences Audi A4 Prices Paid and Buying Experience
980 messages, Last post on Aug 25, 2008 at 4:45 PM
You are in the Prices Paid: Buying & Leasing Experiences Forum. Your Hosts are car_man & kyfdx
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Current loan rates (from Finanial Institutions like banks and Credit Unions) are as low as 3.79% on a loan 60 months or less. Actually ended up with 4.2% when I brought my Ultrasport last September. Also where are these CD's that offer a rate of return (or APY) of 6%? The best I can find on a national average is less than 4.10% (60 to 84 months). Shorter terms have lower returns. I would also question the wisdom in buying a car after the lease is up. Seems counter intuitive since the initial car lease is based on MSRP (or working down from it) and buying it outright in the first place should be based on the invoice price of the car (and working up). I would think that you'd be paying more for that car in the long run than if you just brought it in the first place.
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Replying to: innocencekills (Jan 16, 2005 8:56 am) 2) Leasing vs. buying is mostly a "financing" decision.. If the leasing incentives are higher than the buying incentives, it is sometimes financially prudent to lease. 3) From a strictly monetary standpoint, and assuming there are no business tax issues, leasing vs. buying is a wash.. Usually on a lease you may save on sales tax.. there are exceptions (Illinois, Texas).. The downside: Acquisition fee ($500-$700). This negates the sales tax advantage somewhat.. 3) If you are certain to keep a car 5 years or more, then you probably shouldn't be leasing anyway. If people are happy buying and financing their cars, and never really considered leasing, or just don't understand it... they should probably avoid it.. It is a semi-sophisticated financial transaction, and shouldn't be entered into lightly... It MAY be advantageous for many people, but it takes some work and commitment to work out right... I certainly wouldn't recommend anyone do it, if they are more comfortable with a traditional purchase.. Those are much simpler transactions. If you aren't sure if you should be leasing, then don't do it. regards, kyfdx |
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Replying to: innocencekills (Jan 16, 2005 8:56 am) The question to ask is why pay 3.8% if you can pay 0.6%? (for that matter, why pay cash?) And you're right, that if you are saddled with a 4% APR loan, then you are going to have a hard time beating that in anything that is a guaranteed return investment. But if your finance cost is 0.6%, which it is on a lease, then it's pretty easy to beat. Whether you lease or buy, the price negotiation is no different - the residual is expressed as % of MSRP. Negotiating down from MSRP reduces your lease cost dollar-for-dollar just like a purchase. It won't make any difference to the dealer whether you call it a lease or loan. As for whether you pay more, you'll pay a lot more for a car financed at 4% APR than at 0.6% APR. A lease can in many ways be viewed as a loan where halfway through, you have an option to return the car at a pre-agreed to price and avoid paying sales tax on all the reamining value of the car. If you decide to buy it and keep it at the end of the lease, the price is just the leftover of the price you negotiated when you first setup the lease, minus what you paid over the lease. Unfortunately a lot of misinformation gets out about leasing because many people who get into leasing do it to get a car they can't really afford and then it's a bad experience. |
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Replying to: upndwn (Jan 14, 2005 10:47 pm) |
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Replying to: fishgreg1 (Jan 08, 2005 3:03 pm) |
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I am trying to avoid a super long post and still share what I have learned in the market. I have a GTI scheduled to come off lease 5/1. I have watched this and other boards and expected to wait until April to choose a new vehicle. However, current A4 prices are too good to pass up. (See subsequent posts). When I contacted VW about my early return I learned: 1. VW will wave the $350 disposition fee at lease end for non-buyers of the vehicle, since I am leasing and Audi - VW family product; 2. The lease agreement treats vehicles returned more than 90 days early differently. To protect the consumer, any vehicle returned earlier than 90 days does not pay additional lease charges (capital cost plus residual x money factor), but only depreciation. This is saving me another ~$150. 3. The vehicle will be auctioned. I am responsible for the lesser of a. the residual value less actual price realized at auction or b. the cost of over miles and damages appraised as over market value. Several weeks from now, I will be billed an amount equal to the depreciation charges remaining on my lease plus the lesser of the two numbers described above. I am not expecting it, but if the price the car fetches at auction exceeds the residual price, then I am entitled to have that amount credited to against the depreciation charges I owe.
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Replying to: upndwn (Jan 19, 2005 12:50 pm) It would be much safer to keep the car one more month, and just pay the last two payments... regards, kyfdx
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Hello, I'm looking at leasing an 05 A4 1.8T(FWD), Ultrasport, Premium, Metallic Paint. I'm in san diego area and wondering if anyone has experience with how close a4's should be to invoice at this point? Also, anyone know what the money factor would be on this car? |
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Replying to: kyfdx (Jan 19, 2005 1:03 pm) I am not concerned because I am only paying about $700 for the remaining depreciation. I would have to face the over miles (there are none in my case) and any damage charges at lease end anyway. The auction information only applies to cars turned in more than 90 days before lease end and I was sharing the info for others. I have returned 2 VWs before and they have been fair in assessing damage over reasonable wear and tear. They have never claimed that I had any. It won't hurt that when I return this, my third, I'll still have a lease on another and have an new Audi in the driveway. If the lease was more expensive, you would be absolutely right, it is almost always better to wait until lease end. I am forfeiting some miles and the GTI is a nice car. But, 6 sp Special Edition A4s are becoming rare and the lease deals are favorable. I believe that I am saving more than enough to offset the $700. I'll try to find time to post the deal I made soon. Please look it over and let me know what you think.
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Replying to: upndwn (Jan 19, 2005 5:09 pm) Yes, if you can get a great deal on the Audi now, then $700 is not a lot to get out of your old lease early... regards, kyfdx |
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