Audi0947

Looking to lease a 2013 A4 Premium Plus AWD with MMI and have a trade in worth about 9k and a 695 FICO score. I figure I can negotiate the price down to about 41k but cant figure out what a good lease price would be for 36 months and 12k miles. Taxes here in IL are 7% i believe. Going to the dealer this Saturday and this will be my first time leasing a vehicle a don't want to get ripped off.

Moviela

You are ripping yourself off with a (f)lease. The manufacturer usually has the lowest rates, and they intend to make an additional $5,000. from your pocket to theirs.

You can save that money. Simply purchase the car, use it for what ever period you like, 1 month to 100, your call. Then sell it. That is what they do. Why do you want to play that game?

If you need real answers to leasing questions, go to leasecompare.com. Good people, and if you insist on getting (f)leased, they can keep you out of the most outrageous traps and pitfalls.

Audi0947

Thanks (I think?) i have been driving for 18 years now and have always had a car payment (latest and greatest) so it seems to me that if i'm always going to have a payment then why wouldn't i pay less and lease?
At any rate if anybody else could help i would appreciate it.

snagitseven

I feel this is an over simplification. Purchasing has it finance cost as well, with typically a higher monthly payment. Each person has to weigh the net costs and advantages and disadvantages of leasing vs. taking out a loan. Some folks can't swing the higher payment of a purchase loan much less paying cash for the car. A lease is nothing more than an interest bearing loan for a portion of the car with a balloon payment at the end of the lease if it's not turned in.

In the past, I've both leased and taken out loans. My last three Audis were paid for by cash out of savings less the sale of the old car as I could afford it in my later years. No way I could do that when I was younger. In any case, there are several lease vs loan calculators on the internet and the OP should work it out based on his/her situation.

A loan or a lease will cost money and the lease company or bank is going to charge interest - that's how they make money and stay iin business. And, for those of us who pay cash, when we withdraw the money, we lose savings interest or loss of potential gain on investments. There's no free rides. One just has to do the math and weigh the variables to determine which is the best option.

SFV A4

If you appreciate cars and are into them, leasing is a nice way to get yourself something nice. However, it is the least likely way to gain equity and finally own something. But as you said, you have never owned a car anyway. Your logic of, "I may as well have something nice" makes sense to me, so as long as you have no expectation of one day in the near future getting ahead of payments, gaining equity, and actually owning a piece of something.
Weigh all this out. What is important to you? Driving a nice car or being financially whole. That's really what it comes down to. There is no right or wrong answer... just what you feel is best for you and your life.
Just as an example, I have leased all my life because cars are my hobby and I wouldn't be able to afford what I like otherwise. Then as the years chipped away, finances became more important to me. Now I am holding onto my cars for longer, and buying instead of leasing. Priorities change.

snagitseven

With cars almost always being a depreciating asset, equity is a matter of timing. Assuming a modest down payment, purchasing provides equity only later in the loan period. As you proceed through a 4 year loan, you will see equity grow, albeit by prepaying more up front as you go. With a lease, since you are only paying for the portion you use, there's no equity gained along the way but if you buy out at lease end, you recover the same equity, just at a later date. Again, it's all a matter of timing, net cost comparisons and personal preference. Leasing is another way of buying with an option to keep the car by paying the balloon at the end or just walk away.

dk1

Actually, the right answer is implied. If you lease latest nice cars and continually struggle with payments then it's wrong no matter how you look at it.

a5sport

Having been in the auto sales business "a while ago", and having both leased & purchased new cars, both have their advantages.

If you are one who keeps cars a long time, say 6-10+ years, and drives them for a long time after the loan is paid off, then purchasing is a good way to go.

If you trade, or sell, cars every 2-4 years, and do not mind having a car payment every month, then leasing is a far better choice. You get a new car every time the lease expires, and you will also "get more car for your dollar" by leasing.

The best thing with leasing is to put as little of your money down on the car as possible.

Figure out what you can comfortably handle as a monthly payment, then tell the sales person that this is what you want to spend, and ask them to get you the car you want for that number. Chances are they will come very close.

Did that with both of my Audis...and currently doing it again. Moving from the 2010 A5 to a 2013 or 2014 S5 in December. My sales person is working on the S5 numbers right now.

Good luck.

snagitseven

I think it would be a challenge to come up with a lease payment and say to a salesperson, this is the car you want. You would have to have some idea of the lease variables and cost of the car to ensure you weren't shortchanging yourself.

My approach for a lease is to work backward from the payment target, lease money factor, down payment (I agree it should be as little as possible for a lease), residual % and derive the amount of the cap cost. then, negotiate the price like any other purchase.

This same method works for purchasing with a loan. Figure what you want the payment to be, factor in the term and interest, subtract the down payment and calculate the amount financed and resulting cost of the car. Then, negotiate accordingly.

Using this method takes more work but places the buyer in control, not the salesperson and assures you know what you are really paying for the car. Even the most honest of salespeople will ensure the house (and his commission) has the advantage. Knowledge is power.

a5sport

That is basically what I am saying. You have to have a realistic number in mind based on research. Just can't say I want an R8 GT Spyder for $500.00 a month with no money down, and not get asked to leave the dealership.

I know...I tried it...didn't work.