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Prices Paid: Buying & Leasing Experiences Audi A4 Lease Questions
3146 messages, Last post on Dec 07, 2009 at 10:58 AM
You are in the Prices Paid: Buying & Leasing Experiences Forum. Your Hosts are car_man & kyfdx
| Just wondering if you can expect a better deal if you have an excellent credit rating when leasing or is a credit rating irrelevant? | |
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Replying to: edwardsf (May 31, 2007 4:53 pm) Be fair to the dealer
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Replying to: Car_man (Jun 01, 2007 1:37 am) |
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I worked out the math on a 2007 a4 Audi. Now my comparison is lease vs. buy numbers. On the buy side, I would be looking at a finance loan of 35k, 60 mos. at %5.89 with a payment of about 675/mo. Where as the 36 mos. lease is 379/month 10k mi/yr. Here is the kicker. The residual value on the car after the 36mo. lease is at $18,796.40 and the balance on loan after 36mos. on the 5yr loan situation is, $15,243.80. A difference of $3,553.00 less on the loan. But now factoring in $300/month MORE I pay on the loan for the 36mos., this is $10,800.00 total. So was it worth paying 10,800.00 over three years to buy down the value of the car by 3,553.00? My answer is NO! I can take the 300/month an put it in savings or investment, thus offsetting the cost of driving a newer car. I don’t care about the 10k mi. restriction b/c I will buy the car at the end of the lease. This is a great option because if you look up the same car with the “planned” amount of mileage after three years which would be a 2004 model right now, these cars are priced at 25k. This is a good argument to buy the car from the dealer after the lease end for 18,796.40, then sell it on the market and make a few grand or drive it some more. I think I am seeing all angles of the deal, please let me know if something is in my blind side. Basically I am avoiding loan interest for the first three years of ownership, which is a very large savings with the cost of borrowing money these days at a rate around 5.89%. That is how the savings is made in the lease rather than buy of this car, and maybe in taxes, but that is a gray area to me right now since I haven’t researched it yet. I know the purchase after lease situation of ownership has always been regarded as a way to pay the most for a car, but I think in this situation it works out better to lease.
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Replying to: raudiaudi (Jun 07, 2007 9:25 am) Also, 2004 A4's are not going for 25k. That might be the asking price, but not the selling price. I know that because I am currently selling a 2004 loaded A4 with 33,000 miles on it. I am in a similar situation in an A4. I leased the car with a ridiculously low money rate of .0004 or something like that, and while the car is worth more on the open market then my residual, factoring in the tax consequences makes it a wash. |
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Replying to: cars0153 (Jun 06, 2007 3:27 am) BTW, I have never seen a Southern California or Bay Area Audi dealers ad. I see them for Bimmers and Lexus all the time, but I never see them for Audi. The only thing they do is link some poor deal to the AudiUSA website. |
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Replying to: raudiaudi (Jun 07, 2007 9:25 am) with a lease Audi has the risk. On a purchase you do!
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| how to tell what are good numbers and what bad numbers im sure when you go into a dealer it can be overwhelming | |
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Replying to: cars0153 (Jun 07, 2007 6:09 pm) |
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