Audi Finance Lease/Loan Swap
01-03-2018, 10:46 PM
#1
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Audi Finance Lease/Loan Swap
I just took delivery of an S5 cab which I leased. I love the car so far but for a number of reasons I immediately regretted the lease and wish I’d gotten a simple interest loan. Has anyone ever done an early purchase out of a lease? Does anyone know what the chances are they will agree to convert it to a loan?
01-04-2018, 03:01 AM
#2
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Yes, you can get a loan to buy out the lease. I haven't done this with AFS, but I had a US Bank lease many moons ago, bought the car at the end by taking out a short term loan with US Bank. I doubt it works any different with AFS. I'm pretty sure they are more than happy to give you a loan to buy out the lease.
01-04-2018, 07:29 AM
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01-04-2018, 08:00 AM
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Originally Posted by -=Hot|Ice=-
You can also try and get out of the lease with Swap-a-lease or Lease Trader. I just got out of my BMW lease using LeaseTrader.com
01-04-2018, 08:26 AM
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There are specific provisions to buy the car out of the lease “at any time”. I was just wondering if anyone had done it prior to the end (or as in my case close to the beginning). I bought the Audicare and the damage waiver which I’m sure complicates it. Also I would guess the lease acquisition fee is down the drain.
01-04-2018, 08:35 AM
#7
What do you stand to gain, financially speaking? I mean ... what's the motivation to switch over from a lease to traditional financing if you're still going to have a lien? If you're thought is to finance the entire balance (residual), then I'm having a hard time understanding why the rush; it makes very little difference if you do it now or 2 years down the road ... the final cost will be very similar.
That said, you can generally buy out a lease at any time. The amount owed will be the sum of remaining payments + residual value + fees, and all of this will be outlined in your lease agreement. I don't believe AFS subsidized leases carry an early buyout penalty (beyond normal fees you'd pay at term anyway).
That said, you can generally buy out a lease at any time. The amount owed will be the sum of remaining payments + residual value + fees, and all of this will be outlined in your lease agreement. I don't believe AFS subsidized leases carry an early buyout penalty (beyond normal fees you'd pay at term anyway).
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01-04-2018, 11:33 AM
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I don't believe you can 'convert' but you need to start a separate and new transaction to buy the car out.
At any given time during the lease duration, you there is a buy it now price so to speak. You can either write AFS a check for the amount or find your own financing to buy the car outright.
At any given time during the lease duration, you there is a buy it now price so to speak. You can either write AFS a check for the amount or find your own financing to buy the car outright.
01-04-2018, 01:10 PM
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What do you stand to gain, financially speaking? I mean ... what's the motivation to switch over from a lease to traditional financing if you're still going to have a lien? If you're thought is to finance the entire balance (residual), then I'm having a hard time understanding why the rush; it makes very little difference if you do it now or 2 years down the road ... the final cost will be very similar.
That said, you can generally buy out a lease at any time. The amount owed will be the sum of remaining payments + residual value + fees, and all of this will be outlined in your lease agreement. I don't believe AFS subsidized leases carry an early buyout penalty (beyond normal fees you'd pay at term anyway).
That said, you can generally buy out a lease at any time. The amount owed will be the sum of remaining payments + residual value + fees, and all of this will be outlined in your lease agreement. I don't believe AFS subsidized leases carry an early buyout penalty (beyond normal fees you'd pay at term anyway).
01-04-2018, 02:29 PM
#10
You are totally correct. My motivation is not altogether financial or even rational. Once I made the purchase the lease requirements began to feel onerous like someone is looking over your shoulder the whole time. Additionally aspects of the transaction didn't sit well. They bumped the money factor and tried to hide it and even after I caught them wouldn't honor Audi Financial rates. The only reason I would convert over to an Audi Financial loan is to preserve any rebates. Otherwise Im pretty sure I can beat their rates in the private market.
FWIW, once you're deal has processed, be it a lease or financing, you can refi at any time and will not lose any rebates or incentives that were part of the initial deal. And you can use whatever bank you want. Plenty of people use manufacturer subsidized financing for the rebates or discounts, then turn around a week later and refinance through their bank at a much lower rate. Best of both worlds.
As for a lease feeling onerous, I wouldn't worry about it. I've owned or leased over 45 cars in my lifetime. I've never hesitated to modify or enjoy a lease vehicle any more than one I owned, either outright or with financing. As long as it can be returned to stock -- in the event you plan to return it at least end -- or if you just sell it outright at the end , then satisfy the lease directly (which is usually what I've normally done).