Almost leased a 2008 A4 2.0T Quattro 6MT..... more inside.
10-15-2007, 08:22 PM
#13
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Leasing and buying....
First of all..yes leasing isnt for everyone. I could have certainly afforded the car but audi is a ripoff plus its not worth the buy and the maintenance. By the time you finish paying the car off you want something else...unless you have a good chunk of change and pay it off in about the time of a lease or less and you def want to keep it, then maybe...but you're paying more for what the car is worth with finance charges and remember something better always comes out. However, owning the car you can always trade in and yes you spend less out of pocket in 3 years time. If you lease you cant buyout, its def not worth it....Bottom line you're always gonna have a monthly payment, spend wisely!!!
10-15-2007, 08:32 PM
#14
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Excellent buy vs. lease calculator at Edmunds.com
Unless you can deduct the lease cost against your business, leasing is another name for renting. And like a place to live, nothing wrong with renting, but you're not building up any equity.
If you always pay $650 a month and always lease, you'll always get the same price car.
If you always pay $650 a month and buy on a loan, each time you buy you'll step up in car price.
Or if you don't get a new car, then you'll have $650 a month to spend on mods.<ul><li><a href="http://www.edmunds.com/new/2008/audi/a4/100882877/calculator.html">http://www.edmunds.com/new/2008/audi/a4/100882877/calculator.html</a</li></ul>
If you always pay $650 a month and always lease, you'll always get the same price car.
If you always pay $650 a month and buy on a loan, each time you buy you'll step up in car price.
Or if you don't get a new car, then you'll have $650 a month to spend on mods.<ul><li><a href="http://www.edmunds.com/new/2008/audi/a4/100882877/calculator.html">http://www.edmunds.com/new/2008/audi/a4/100882877/calculator.html</a</li></ul>
10-15-2007, 10:15 PM
#17
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If you invest the money you spent buying the car outright, the numbers pretty close..
You left out of the equation the appreciation of the capital you spent on purchasing the car. That 40k even put in a savings account would earn you 6k over the life of the lease !! This like getting a year free. If you put it in a CD or another safe investment you could do even better.
10-16-2007, 04:44 AM
#18
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Invest what money? The point I've made is that you pay MORE over two or three years on a lease...
than on an out-right purchase.
Even if you did invest money... (Maybe the Downpayment difference... But that would also up your monthly payments...) There are other problems with your scenario. First, unless you invest risky, you likely won't be higher than the interest payment on the car. (Savings- ~1%, Money Markets ~2%, Short Term CD ~5% but your Loan/Lease is likely 6%. You would be earning between negative 1 to 5 percent per year on your investment.
If you wanted to ensure you make more than your loan percentage, you'd need a more risky investment (Stocks, Indexes, etc)- which short term is risky to say the least (like over a two or three year lease).
So the point is, there is no "extra" savings to a lease to "invest", and even if there were, you'd have a hard time and a lot of risk to come out ahead. If we were talking about $500 dollars or so, we could call it a wash. In the case of the S4 example I gave, it's a difference of almost $15,000!
Even if you did invest money... (Maybe the Downpayment difference... But that would also up your monthly payments...) There are other problems with your scenario. First, unless you invest risky, you likely won't be higher than the interest payment on the car. (Savings- ~1%, Money Markets ~2%, Short Term CD ~5% but your Loan/Lease is likely 6%. You would be earning between negative 1 to 5 percent per year on your investment.
If you wanted to ensure you make more than your loan percentage, you'd need a more risky investment (Stocks, Indexes, etc)- which short term is risky to say the least (like over a two or three year lease).
So the point is, there is no "extra" savings to a lease to "invest", and even if there were, you'd have a hard time and a lot of risk to come out ahead. If we were talking about $500 dollars or so, we could call it a wash. In the case of the S4 example I gave, it's a difference of almost $15,000!
10-16-2007, 04:58 AM
#19
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It's sounds like you'd be a number #2 in my "Exceptions" to leasing portion of the post...
There is nothing wrong with that, if that's your attitude and your OK with it. I admit there is a certain ease to leasing, but as I stated in my post... Financially it's a bad idea. To me, the extra 8-10K (or 15k in the case of the S4) is not worth the extra "convenience"