cgf

Here is a great resource for understanding the leasing process. It tells you how to watch out for sneaky dealers<ul><li><a href="http://smartmoney.investing.lycos.com/ac/autos/">http://smartmoney.investing.lycos.com/ac/autos/</a</li></ul>

Andras Nagy

cgf:

Thanks for the posting. This will help people understand more facts about leasing.

BUT, there is an even more fundamental issue at work in this equation - namely that when you lease you do not own the vehicle. This is like renting a house, instead of buying it. There's a huge difference!

If you think of it as rent, or a use fee, then you will have no misconceptions about what you are getting. The issue is really one of getting the lowest monthly payment possible, and that is why leasing is so popular. People who have average income can lease the maximum car, and PRETEND that they have moved up in life (why that's important, I don't know, but I'll let others address that subject). But they still don't have equity (yes, I know, a car is a depreciating asset, but if you do the numbers, you will find that leasing is entirely pay-out lots of money, and have nothing to show for it).

We owned a 1981 Mercedes for 19 years, and I can assure (prove to) you that we spent less for that car over those 19 years than anyone who would have leased that car. And that's why we bought our Audi, and didn't lease it. Leasing makes no economic sense. Emotional sense, yes, for having more car than you can afford. But not economic sense..........Andras

cgf

I totaly agree with you, but if you are the type of person who gets bored with a car after a few years, leasing may be the way to go. I myself was planning on leasing my A6 4.2 until I did more research, and found out the the dealer was ripping me off for about 7500 bucks. I ended up buying the same car from a different dealer, and am happy that I puchased.
I posted to help others who wish to lease or understand the whole process behind the lease, do so without getting screwed by a snake in the grass salesman.
You made excellent points, and one should consider all options when making a purchase like this.

DWP

You are right as far as you go, Andras. But there are tax and business reasons for leasing as well. BTW, here's another link for leasing and buying tips. I am very impressed with the lease calculators included there.<ul><li><a href="http://www.carbuyingtips.com/lease">http://www.carbuyingtips.com/lease</a</li></ul>

mbh

I leased my A6. It seemed like a good idea at the time (I was able to invest what would have been the down payment and had more money left over each month to save etc.) especially with the lease deals offered at the end of the '99 model year.

One problem, however, is that I am effectively locked into the car until the end of the lease unless I am willing to take a huge financial hit. Of course, this means that I cannot act upon any urge that I may have (fueled by reading this forum, of course ;-) to run out and get a 2.7T or 4.2 (I even asked my local Audi dealer about getting out of the lease early and he basically said I would be crazy).

Mitch

DWP

Me too. Damn!

timcar

URL doesn't work. Got another?

cgf

http://www.carbuyingtips.com/lease.htm

If that doesn't work for you, just strip off the lease.htm, and hit the leasing link on the left hand side of the page. It is about halfway down.

grove

If you're not leasing for business reasons, the only advantage to leasing (aside from no down payment and lower monthly payments) is that you can, if you choose, have a new car every time a lease expires. That's why I do it; also, I've been totalled twice, absolutely not my fault (rear ended at a stoplight, hit broadside by a red-light runner) and with a leased car, you just get another car without the huge hit you would take on depreciation if you owned the car.

mbh

Maybe I should try an order a 2002 2.7T and see if the local dealer blinks ;-)