Joseesq

I am picking up my 2017 Q7 Prestige in Germany next month. I don't know if I should just pay cash or lease. Does anyone know the current residual and MF? Can you give multiple security deposits to lower the interest rates?

This is my first quote on a 36/10k lease:

Msrp $69280
Initial Cap Cost $65816
61% residual and .00150 MF
$5000k drive off
Adjusted Cap Cost $63369.51
Lease payments $744.80 + tax

Any good? Thanks

jallen0

I am not sure how it is today but in January when I received mine it was actually cheaper to buy vs lease. Of course this depends on what the trade-in value will be in 2-3 years however I feel good about my decision. I have a super low interest rate and also received a 6% deduction when I purchased it. Of course that program is now gone.

ven7782

Are you only planning to keep you vehicle for say only 3-4 years. If the answer is yes then you should lease. Otherwise you should buy. But keep in mind that leasing is always expensive than buying and there are numerous fees to deal with. Also the mileage restriction did not bode well with me. Penalty of you go over but no credit for unused miles. This is absolutely unfair and I am not sure when will it change.

SYMAWD

That's not always true. Here is an example using my Civic Si, so just a normal deal that anyone would be capable of getting.

The MSRP on my Si was $23,780 and the selling price was $21,137. So to buy it, I would pay $21,137 + $230 in motor vehicle fees + $249 dealer doc + $1,480 tax for a total of $23,096. Keep in mind, this calculation does NOT include interest. If I did finance this at 0% for 60 months, it will cost me $13,824 in payments over 3 years.

Now for my lease (put $0 down), I will pay $8,205 in total for payments and then I can buy it for $14,268 + $999 tax for a total of $23,472. So that's a whopping difference of $376 but remember that my buy calculation includes no interest and my $8,205 has 0.48% interest built in which we'll call negligible. In total the lease will cost me $8555 over 3 years once you add the disposition fee.

Now if at the end of my lease, the car is worth $16,000 I can trade it in (avoid disposition fee) and get a check for that amount instead of just returning the lease. Here I make $1,732 and my lease will only cost $6,473 over 3 years. If the trade value is $14,268 or less, I'll just trade it in and it will cost me $8,555.

But if I financed, after 3 years I'd still owe $9,216. If my car is worth $16,000 at the time, the car would cost me $7,040 over 3 years. That's more than the $6,473 if I leased it. If the car is worth $14,000 at the time, it would cost me $9,040 over 3 years which is again more than the $8,555 lease.

Or if I decide I don't want a new car after 3 years, I'd be out the whole $376 once the car is paid off, once again ignoring any interest.

Force-1

I've leased 8 vehicles, and turned them in at lease end.

ven7782

Motor vehicle fees is the registration which is also applicable to lease, so no advantage there. The dealer doc fee equivalent for lease is the acquisition fee and its much higher than the doc fee. For Honda its approx $593.

Now based on your figures I have the following for 36 months with residual of 60%:
MSRP 23,780
Down payment 0
Base MF 0.0002
APR 0.48
capitalized cost 21,137
Net Cap cost 22,211 (added Acquisition and tax)
Residual value 14268
Finance charge 7.295766
Depreciation Fee 220.6341667
Monthly Lease Payment 227.9299327
Acquisition Fee /Bank Fee 593
security deposit 0
Sales Tax 480.83

You are paying $8,205 in total for payments for 36 months. Now if you decide to buy it at the end of lease, your total payment is:
$8,205 + $14268(Residual) + $230 in motor vehicle fees + $999 balance tax = $23702.47758

If you are buying the total is: 21,137 + $230 (Registration) + $249 (dealer doc) + 1,480 (Tax) = $23,096 Which is a full $606 lower.

Agreed that you are paying less in the first 3 years of ownership, but you will always pay higher if you try to buy back the leased vehicle.

This example is of an inexpensive civic with a low MF. For the 4M the price difference is startling given the high MF.

Moewron

Not entirely true. Sure, they won't write you a check, but I've received some compensation for being a bit under on millage when turning in one lease for a second.

dhc8guru

What amazes me is how leasing became a commonplace thing which was something reserved for businesses that were writing the expense off.
Maybe my exposure with people who did leases and said they would never do it again for various reasons makes me steer clear of leasing. Also for me, I drive about 15k miles a year so a lease really wouldn't work.
A majority of people are using leases to drive cars they couldn't afford to buy which really equates to living within a budget.

maxlxi

Years ago when I was considering European Delivery, I was told this was not available for a US customer if leasing. I don't know if the OP is a US customer, but can one use ED now if leasing?

Joseesq

Yes I am in Los Angeles, CA and doing ED. The Audi dealership said I can lease (numbers above) or I can pay cash. The posts are interesting discussions on pros and cons but to help me decide I still need to know whether anyone knows the current residual and MF? Thanks