ckreling

Hi

I am getting this from my actual Audi Lease...

You can exercise the purchase option at any time and you pay...

1-Purchase Option Amount (Residual) plus
2-Purchase option fee (zero in my lease) plus
3-Any past due payments (hopefully none) plus
4-Any official fees for early termination (none in CA) plus
5-remaining payments LESS
6-Unearned rent charges (this is like the interest not yet paid by you on a normal amortized car loan) Some of your lease payment os for 'rent and finance charges' and some is for the payment of the depreciation (cap cost less residual) over the life of the lease.

Generally I have never had a problem trading leased cars and the result is usually no different then when trading in a financed car. You can be ahead or under water based upon price you paid for the car and current retail/trade-in value.

All is negotiable (example I got a .0029 money factor which is like a less than 7% loan)

Feel free to ask any more questions on leasing as I have done this many times with no ill consequences.

Charles

phred

you are quite likely to be "underwater" until the lease is almost over, so on the trade you will get taken. But then again, on trades you almost always get taken, so what's the diff?

alanbns

whats the formula for converting money factor to actual interest rate ? (I keep forgetting)

Spdracr

Multiply money factor by 2400.
e.g. .0029(money factor) x 2400=6.96 A.P.R.