giff9

I have been reading this forum for a while and it has helped to influence my next car decsion as an Audi.... I plan on buying a b7 S4 in about 6-7 months, but was just curious as to why so many of you lease? Also it seems alot of you lease and then buy (or atleast plan to) I was just curious as to why you would do this instead of just buying? This is my first "nice" car and I plan to keep it for 5 years, i'll probably an used 2005.5.... any input is appreciated.

johnz

a lot of the depreciation is in the price. Audi is currently offering some good finance deals on certified pre-owned cars. Unless you can write it off or want a new car every couple of years, you want to purchase, not lease. I purchased.

superswiss

That's a good rule to live by. Everybody has to decide for themselves in each situation, though. There are always exceptions to the rule.

You wanna make sure you have a reason for buying a depreciating asset. For example you plan to keep the car for a long time or you can secure 0% financing or some other really good deal to name a few.

Stay away from leasing and then buying. Unless you buy it with cash you end up financing and paying interest for the residual twice. Not a smart thing to do.

bzcat

but generally speaking, Audi's resale value sucks compare to say BMW so if you only plan on keep the car for only a few years, it is wise to lease an Audi and let VWoA worry about the resale value.

The other issue is simply cashflow. I can find better use for my money than huge monthly payment associated with a loan... but to go on would turn this into a lease vs. buy debate which has no "correct" answer because everyone's risk tolernace is different.

Inquisitor

She leased a car with the intention of buying it at lease end, and is adamant that it will end up being a better deal than buying. Yes, she's a contractor, but no, she's not leasing for her business, so no tax benefits.

I really don't understand, but maybe that's why I'm not an accountant.

G-Wass

In many ways (at least financially), a lease is like a loan, except instead of repaying the principal in full, you repay principal down to the residual. Leases have an inherent interest rate built in, so you need to compare that vs. the rate you'd pay on loan financing (or, if you're buying the car for cash, the interest rate you would've earned on your cash). A major bonus with a lease is that you have optionality. If you love the car, you can buy it at the end and as long as the lease interest rate wasn't more than purchase financing, it won't cost you anymore. Also, if you think it's worth more than the residual, you can try to sell it and pocket the difference. But you always have the option of returning it, which is a huge benefit.

DrGP

you can either buy it or walk away. No trade in to encumber the next purchase or lease. Also you can extend the lease if you are so inclined. Its all about having options.

zumbalak

Otherwise I would never lease a car, any car. Unless the offer must be so very good.

For the lease of my s4, i got about 5000 off msrp, and 1.2% apr. Yes only 1.2%, and tax is also paid by Audi. It was such a lease deal that I just could not pass.

sparkhill

The car can then be be purchased at lease end, if one desires. One method is to rapidly depreciate the vehicle over the life of the lease as a business expense and then convert it to personal use at lease end. You could depreciate 80% of the vehicle over three years and then buy the vehicle for personal use for 20% of the original purchase price at lease end. Of course, this all assumes that you are able to deduct lease payments as a business expense. If your payments are non-deductible, then I would purchase the vehicle.<ul><li><a href="ftp://webpages.charter.net/RS4/Financial/AFS%20Leasing.pdf">Lease Info</a></li></ul>

Shawn-Boston

I searched the net but could not find a clear answer (some said you can, some said you can not).

Thanks,
Shawn

2006 S4 Cab