Audi A4 Auto Lease Programs - January 2011
01-10-2011, 11:43 PM
#11
Best way I can describe leasing is like this... If you put your value on cars, then lease. If you put your value in money, then don't lease. Leasing gets you more car but you are left with nothing to show for it in the end. Or you could say leasing is a splurge of something you really wouldn't normally be able to afford. That's the devil on one side of your shoulder trying to outshout the angel on the other shoulder.
01-11-2011, 02:47 AM
#12
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Best way I can describe leasing is like this... If you put your value on cars, then lease. If you put your value in money, then don't lease. Leasing gets you more car but you are left with nothing to show for it in the end. Or you could say leasing is a splurge of something you really wouldn't normally be able to afford. That's the devil on one side of your shoulder trying to outshout the angel on the other shoulder.
01-11-2011, 05:37 AM
#13
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Best way I can describe leasing is like this... If you put your value on cars, then lease. If you put your value in money, then don't lease. Leasing gets you more car but you are left with nothing to show for it in the end. Or you could say leasing is a splurge of something you really wouldn't normally be able to afford. That's the devil on one side of your shoulder trying to outshout the angel on the other shoulder.
It is absolutely the best way to drive a vehicle if you always have a car payment. Ask how many people were glad they were leasing their SUVs when fuel prices skyrocketed. We saw lots of people who owned SUVs taking huge hits on dumping them for more fuel efficient ones.
Those who leased were happy they did as they did not take a hit when they turned in their lease and got a new, more fuel efficient, model.
01-11-2011, 05:40 AM
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Again, nothing wrong with buying a car and fully depreciating it. Unfortunately most people who buy do not do this.
01-11-2011, 12:36 PM
#15
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I'll throw in my $0.02...
Before I got my '09 I ran the numbers for purchase and/or lease. From AFS assuming the residual value was what I could sell the car for after 3 years - lease vs. purchase was within a couple of hundred dollars in total cost. If I'd gone with a third party source, I could have likely gotten a lower payment on the lease - likely they would use a higher residual than AFS - but that residual would also lower the total cost of purchase. I ended up buying because I don't drive few miles per year and will likely keep it more than 4 years.
If you are buying the same car - leasing/purchasing have different advantages/disadvantages. Lease is a known quantity in terms of total cost (as long as you don't drive excess miles, have scratches or other damage that needs repairing - but these would reduce the resale value of a purchase as well). Purchasing puts the risk and potential reward of a different residual value on you, not on the bank and gives you a little more flexibility with mileage/etc. If you drive 30k/year a lease isn't going to be cost effective.
If you drive the same car for more than 3 years, purchase and/or buying off the lease at lease end may be similar in total cost - it all depends on the particulars of your situation and the deal you can get for financing vs. leasing.
IF you use a lease to get a car that has the same lease payment as another cars purchase payment, yes, no doubt -- leasing will cost you a lot more - you are paying for depreciation on a car that costs more to begin with, thus depreciates more.
Bottom line - simplistic statements like "leasing is bad" in no way holds true in all cases -- some sure, but not all. EACH person looking to lease needs to run the #'s and determine which method will work best for them.
Before I got my '09 I ran the numbers for purchase and/or lease. From AFS assuming the residual value was what I could sell the car for after 3 years - lease vs. purchase was within a couple of hundred dollars in total cost. If I'd gone with a third party source, I could have likely gotten a lower payment on the lease - likely they would use a higher residual than AFS - but that residual would also lower the total cost of purchase. I ended up buying because I don't drive few miles per year and will likely keep it more than 4 years.
If you are buying the same car - leasing/purchasing have different advantages/disadvantages. Lease is a known quantity in terms of total cost (as long as you don't drive excess miles, have scratches or other damage that needs repairing - but these would reduce the resale value of a purchase as well). Purchasing puts the risk and potential reward of a different residual value on you, not on the bank and gives you a little more flexibility with mileage/etc. If you drive 30k/year a lease isn't going to be cost effective.
If you drive the same car for more than 3 years, purchase and/or buying off the lease at lease end may be similar in total cost - it all depends on the particulars of your situation and the deal you can get for financing vs. leasing.
IF you use a lease to get a car that has the same lease payment as another cars purchase payment, yes, no doubt -- leasing will cost you a lot more - you are paying for depreciation on a car that costs more to begin with, thus depreciates more.
Bottom line - simplistic statements like "leasing is bad" in no way holds true in all cases -- some sure, but not all. EACH person looking to lease needs to run the #'s and determine which method will work best for them.
Last edited by need_TQM; 01-11-2011 at 12:41 PM.
01-11-2011, 05:16 PM
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02-04-2011, 07:03 PM
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There are far too many people commenting on leasing here that really shouldn't.
This is pretty plain, simple finance. Leasing can be advantageous assuming that you're the kind of person who prefers a new car every 2-5 years. The wisest financial move is to buy a used car, pay it off and drive payment free for as long as possible. As many people prefer a new car far more often, they really should look into leasing.
Having said that, I'd be all over a new lease right now, but it's a shame tha the residuals are so poor. Otherwise, I'd be in a showroom tomorrow.
This is pretty plain, simple finance. Leasing can be advantageous assuming that you're the kind of person who prefers a new car every 2-5 years. The wisest financial move is to buy a used car, pay it off and drive payment free for as long as possible. As many people prefer a new car far more often, they really should look into leasing.
Having said that, I'd be all over a new lease right now, but it's a shame tha the residuals are so poor. Otherwise, I'd be in a showroom tomorrow.