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Prices Paid: Buying & Leasing Experiences Audi A4 Lease Questions
3145 messages, Last post on Dec 04, 2009 at 11:32 PM
You are in the Prices Paid: Buying & Leasing Experiences Forum. Your Hosts are car_man & kyfdx
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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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Replying to: raudiaudi (Jun 08, 2007 7:55 am) Not necessary. Bad manners, too. Audi will not sell the car on buy-out price defined in lease agreement (residual value + remaining payments less interest) to anyone BUT the lessee. That is the difference he finds in Audi from other auto cos. Audi will quote a higher price if a 3rd party wants to buy the car. Other auto cos. in his research have indicated that a 3rd party could buy a car from them off of a lease to you at that agreed price and this would enable you to escape tax burden by having to buy the car and re-sell it to 3rd party.... The tax occuring twice refers to something that is true on most leased cars in most states. If I buy my Audi today I pay remaining tax owed and then if I sell it tomorrow to another party they pay the tax on the amount they pay me, too. That is not exclusive to Audi, though. There are clever ways to get around this in some states. What is exclusive to Audi according to the poster and guarantees this tax situation is their refusal to sell to a 3rd party for the same (possibly attractive) price as they have agreed to sell it to you in their lease agreement. It is not as though they get the tax money so it is just a way to encourage you to stay in the leased car by making it financially unattractive to get out of the lease. Either you have to buy the car and re-sell and pay tax or a 3rd party (non Audi dealer or your next door neighbor for example) has to pay more unattractive price to buy out from Audi and then they pay tax once on their transaction (if it is private party - but if it is a dealer - then no tax will be paid until the car is sold to another private party by dealer.) What part did you not understand?
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Replying to: raudiaudi (Jun 08, 2007 7:55 am) Just don't call me in three years for help when you decide to buyout your lease from the "dealer" and finally figure out how the transaction will work. |
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