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Prices Paid: Buying & Leasing Experiences Audi A4 Lease Questions
3147 messages, Last post on Dec 08, 2009 at 9:02 PM
You are in the Prices Paid: Buying & Leasing Experiences Forum. Your Hosts are car_man & kyfdx
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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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Replying to: audihorse (Jun 08, 2007 8:35 am) This will avoid tax liability on the lessee's part and allow the lessee to resell to a third party at the favorable lease buyout price (or higher to turn a profit). http://www.boe.ca.gov/pdf/reg1610.pdf Tax laws vary state to state however. |
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Replying to: audihorse (Jun 08, 2007 8:35 am) Or, if the lease allows him to sell to a third party but at a higher buyout fee, he has to perform that contract term because ... he signed the contract. So if Audi wants to keep you in a lease for their business purposes (which I think we can assume they know better than the consumer), they can penalize him for breaching that lease by selling the car to a third party. Maybe some companies will let the lessee sell the car to some third schmoe for the remaining payments and residual, but the lessee will still owe them a fee. Otherwise, what is the incentive to stay in the lease? If Audi has violated the terms of the lease by requiring a higher buyout than the lawyer contracted for, then the lawyer has a cause of action against Audi. But it appears that Audi is not violating the lease as the lawyer does not mention litigating the issue (and if a lawyer would not litigate, who would?) Again, if they penalize him beyond the terms of the contract, the lessee has legal redress. Indeed, he could get attorney fees under truth in lending laws. http://consumerlawpage.com/article/common.shtml I don't think Raudi was following the tax argument of the lawyer. The lawyer is indeed hosed by the tax circumstances he got himself into. The lawyer never did respond to my suggestion to trade or sell the lease itself. As I said, if one don't understand the risks inherent in a lease or have an uncertain income ... one should not enter a lease.
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Replying to: edwardsf (Jun 08, 2007 1:26 pm) He did not say he thought he had a case against Audi - just that he objected to their terms and would not lease again from them. |
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