Jima4

Is it possible to exchange my A4(2yrs left on lease) for a new lease on an A6?

Jorge C

doubt it. Since the deal is made through a bank, chances are they won't allow you to get out of the lease until is over... OR, you can pay the penalty for bailing out and get in an A6 lease... but if you are talking about 2 years left you would be looking at paying around $5000 to get out...
One of the disadvantages of leasing...

Jorge
'99 1.8TQMS

DRG

On most leases, you have at least one way to get out and into a different car. However, it is possible that it will cost you a little bit of money.

Basically, there is generally a provision in the lease for buying out the lease while it is still in progress. For an AFS (Audi Financial Services) lease, the option is described as item 24, part 1 on the back of the lease. At any given point, you can contact your financial to find out the buyout cost. On the AFS lease, this is calculated the residual cost (normal lease-end buyout price) plus remaining payments due MINUS the portion of the remaining payments that are related to finance charges rather than depreciation. In generally, this comes out similar to the value you'd get if you regarded your lease as a balloon loan and calculated your principle balance at the present time.

Once you buy the car, you can then sell it privately and then move on to another car. Or, you can trade in the vehicle on a new car. Finally, you can get a dealer to buy out the lease for you, with you paying him the difference between the offered trade-in price and the buyout cost.

Now, the money loss comes in if the buyout cost of the car is more than what you could turn around and sell or trade in your car for. You have to eat the difference. It's like being upside down on a traditional auto loan. Plus, you've lost the money you spent up front on your lease acquisiton fee and you may lose on any sales tax you paid in advance.

I recently checked the buyout price of my 1999 A4, now 16 months into a 39 month lease. It's around $24K (my capitalized cost for the car was $26K purchase price plus $1K New York State tax paid up front but financed by the lease). If I could get $24K for the car, I could walk away. A dealer would never give me this on a trade-in, but I might be able to get this privately, as the car is in great shape. Or, at most, I'd have to eat $1K-$2K.

The longer you are into your lease, and the higher the residual compared to the actual market, the better the chance that you've built up enough equity to be able to walk away without much cost. The A4 seems to be holding its value quite well, which will work to your benefit if you work hard in getting the maximum price for it.

In the end, it depends on how badly you want to move to the new vehicle.

Jima4

Wow, Thanks alot for your detailed answer. The A4 forum rules

das

I did this. The problem is that you have to buyout the lease. Essentially you pay the remaining payments minus some depreciation. It is a complicated calculation. Call your lease company or bank. If you have a dealer buyout the lease you will save the tax as the dealer will not pay the tax since you are buying or leasing a new car. This could be 1500-2000 so a trade is favorable in this situation. Good luck

delpreston

your wrong.