Leasing mileage issues... - AudiWorld Forums

Go Back   AudiWorld Forums > Audi Models > Audi S4 / RS4 > S4 (B8 Platform) Discussion
Log In 


S4 (B8 Platform) Discussion Discussion forum for the B8 Audi S4 produced from 2009-present

Leasing mileage issues...

Reply
 
 
 
 
LinkBack Thread Tools Search this Thread
Old 08-04-2014, 03:42 AM   #1
Audiworld Junior Member
 
Join Date: May 2014
Location: New Jersey
Posts: 11
Default Leasing mileage issues...

So I got my wonderful S4 recently via a 10k mile lease and suddenly my job situation changed. So instead of driving 4 miles each way to work I'm driving 30. Its not bad, very little if any traffic but now I'm heading way north of my mileage limit. I'm thinking of going to my salesguy, a nice one, and asking what I can do about this at this point. Even if I upped it somehow to 15k a year it would be too little. It seems to me that my only option right now is to just buy the car.

Should I investigate this now? Or wait till I'm more towards the end of the lease? I'm thinking Audi will be less likely to take the car back from me early if they know I'm about to pay a huge mileage penalty.

All the deals I hear about on the forum about buying the car out before the lease is up and making some money back due to the low residual sounds great but if the mileage is high then is that even possible?

Any advice please...thanks.
__________________
Current Ride:
2014 S4 P+ in Phantom Black on Black Alcantara
Navi / Sport Diff / B&O / Side Assist

Previous Rides:
2011 BMW 328xi Coupe
2002 BMW 325xi Sedan
1997 Nissan Maxima SE
MaxSport730 is offline   Reply With Quote
Old 08-04-2014, 04:53 AM   #2
AudiWorld Senior Member
 
Join Date: May 2001
Location: Franklin MA
Posts: 1,387
Default

my advice is to buy the car at the end of the lease and either keep it yourself or sell it
__________________
red b8 s4 manual with recaro buckets and 5-point harnesses... in the back
StumpJumper is offline   Reply With Quote
Old 08-04-2014, 06:23 AM   #3
AudiWorld Super User
 
DrGP's Avatar
 
Join Date: Mar 2003
Location: Lehigh Valley PA
Posts: 12,219
Default

I can't guarantee this will happen for you but I have read posts where owners with excessive mileage were forgiven their extra mileage charges when they leased or bought a new Audi at lease end. If dealer buys the car to put on their lot rather than turning back to Audi , the mileage doesn't matter. Many of us, including myself have traded in their S4 rather than just giving it back. I made $6k on that deal. You can always buy the car at lease end and resell it if you want. I've done that once and put $3k in my pocket, but the transfer can be a hassle depending on what state you are in. Another thought. I leased a 2014 in Aug 13. Due to health issues and employment status, I no longer wanted to continue leasing. Back in May, I found a used 2011 S4 and traded in my leased 2014 on it. I was only $1k underwater. So if you have interest, you may be able to trade your S4 in NOW, for a 2015 ANYTHING. You can order what you want and still keep driving your current S4. But be aware, you may need to find a dealer that is interested. When I tried to get out of my lease and resell the car back to my seller dealer, they wanted nothing to do with it. leasetrader. com was totally useless. Its very hard to have someone else take over the lease of a VW /Audi car. Lots of red tape. You have lots of options an are no hurry to do anything. BTW, high mileage will negatively affect your trade in value.

Last edited by DrGP; 08-04-2014 at 04:04 PM.
DrGP is offline   Reply With Quote
Old 08-04-2014, 06:59 AM   #4
Audiworld Junior Member
 
Join Date: Apr 2012
Location: Warrenton, VA
Posts: 55
Default

^^^^ Good info from @DrGP.
Carbines is offline   Reply With Quote
Old 08-04-2014, 11:19 AM   #5
AudiWorld Senior Member
 
seinsmeld13's Avatar
 
Join Date: Jan 2008
Location: Niagara Falls Canada
Posts: 972
Default

Quote:
Originally Posted by DrGP View Post
I can't guarantee this will happen for you but I have read posts where owners with excessive mileage were forgiven their extra mileage charges when they leased or bought a new Audi at lease end. If dealer buys the car to put on their lot rather than turning back to Audi , the mileage doesn't matter. Many of us, including myself have traded in their S4 rather than just giving it back. I made $6k on that deal. You can always buy the car at lease end and resell it if you want. I've done that once and put $3k in my pocket, but the transfer can be a hassle depending on what state you are in. Another thought. I leased a 2014 in Aug 13. Due to health issues and employment status, I no longer wanted to continue leasing. Back in May, I found a used 2011 S4 and traded in my leased 2014 on it. I was only $1k underwater. So if you have interest, you may be able to trade your S4 in NOW, for a 2015 ANYTHING. You can order what you want and still keep driving your current S4. But be aware, you may need to find a dealer that is interested. When I tried to get out of my lease and resell the car back to my seller dealer, they wanted nothing to do with it. leasetrader. com was totally useless. Its very hard to have someone else take over the lease of a VW /Audi car. Lots of red tape. You have lots of options an are no hurry to do anything
In Ontario you pay 13% tax when you buy it, Therefore 13% goes down the drain the next day as the new owner pays 13% on what you sell it for to him or her. So buyout and quick flipping will not work here.
__________________
2013 S4 Canadian premium model-Stronic-phantom black-red/black nappa-sport diff-rear heated seats-titanium rims-AWE with downpipes-tint-Bilstein PSS10 with SPC adj. arms-weathertech mats f & r-tint
seinsmeld13 is offline   Reply With Quote
Old 08-04-2014, 12:04 PM   #6
AudiWorld Member
 
Join Date: Sep 2012
Posts: 369
Default

Audi will send you an offer to buy extra miles at a reduced rate about 1/2 way through the lease. However that payment will not lower residual. I'd buy the car or trade it in towards the end of the lease.
RickFLS4 is offline   Reply With Quote
Old 08-04-2014, 01:41 PM   #7
Audiworld Junior Member
 
QuartzS4's Avatar
 
Join Date: Apr 2011
Location: Santa Clarita, Ca
Posts: 14
Default

If you are thinking of getting another Audi towards the end, the dealer will usually "forgive you" and will be willing to give you a new lease at a great deal.
QuartzS4 is offline   Reply With Quote
Old 08-04-2014, 04:01 PM   #8
AudiWorld Super User
 
DrGP's Avatar
 
Join Date: Mar 2003
Location: Lehigh Valley PA
Posts: 12,219
Default

Quote:
Originally Posted by seinsmeld13 View Post
In Ontario you pay 13% tax when you buy it, Therefore 13% goes down the drain the next day as the new owner pays 13% on what you sell it for to him or her. So buyout and quick flipping will not work here.
Didn't realize New Jersey( where the OP lives) was in Ontario! J/K. Thanks for the info from the Great White North.
DrGP is offline   Reply With Quote
Old 08-04-2014, 05:18 PM   #9
AudiWorld Senior Member
 
Join Date: Mar 2006
Location: San Francisco Bay Area
Posts: 1,135
Default

^^^ His point is still valid in most US states as well. It's not 13%, but in states where you only pay tax on the lease payment (New Jersey seems to be one of those), you'll have to pay sales tax on the buyout, which tends to eat up most of the equity you have in the car. Not a good idea to buy and flip unless you really come out ahead.
__________________
'13 panther blk RS5, Ti pkg, blk leather/alcantara, nav pkg, sport exhaust, driver assist pkg, rear shade, alu kreuz, ECS spacers 15f/10r, ECS tru-float rotors, ECS brake lines, Hawk HPS pads, european delivery
'07 phantom blk S4, blk leather, 6mt, conv pkg, audio pkg, heated front&rear seats, bluetooth, nav plus, parktronic, DTM pkg, carbon trim, TPMS, rear&side shades (sold)
superswiss is offline   Reply With Quote
Old 08-04-2014, 05:46 PM   #10
AudiWorld Super User
 
DrGP's Avatar
 
Join Date: Mar 2003
Location: Lehigh Valley PA
Posts: 12,219
Default

Quote:
Originally Posted by superswiss View Post
^^^ His point is still valid in most US states as well. It's not 13%, but in states where you only pay tax on the lease payment (New Jersey seems to be one of those), you'll have to pay sales tax on the buyout, which tends to eat up most of the equity you have in the car. Not a good idea to buy and flip unless you really come out ahead.
When I sold my 2004 S4 I paid 6% PA sales tax Plus transfers(aprox $2400) . Sold the car for $2k under market value and still put $3k in my pocket. Buyer will have to pay sales tax on any car they will buy.
DrGP is offline   Reply With Quote
Old 08-04-2014, 05:53 PM   #11
gk1
AudiWorld Super User
 
gk1's Avatar
 
Join Date: Jan 2001
Posts: 6,128
Default

I was in a similar situation. Mileage was way north of the lease total allowed. The dealer worked with me a bit on the negative equity since I was a getting a new Audi from them but they could not absorb it completely which is understandable. I should have owed more than twice what I ended up if I had simply turned in at lease end. Since I wanted something new anyway it worked out, but buying out the lease as you're interested was my 2nd option.
__________________

2015 S6 Quartz Gray
Black, Carbon, Night, Cold, DA, ACC, 20's, Alu Kreuz, 034 mounts, H&R 15mm

2014 SQ5 Glacier White
Black Nappa, Carbon, B&O, NAV, 21's

Past:
2012 S4 S-Tronic Monsoon Gray
2008 A6 3.2Q S-Line Daytona Gray
2007 A4 2.0T S-Line Ice Silver
2001 S4 Nogaro Blue
gk1 is offline   Reply With Quote
Old 08-09-2014, 08:01 AM   #12
Audiworld Junior Member
 
Join Date: May 2014
Location: New Jersey
Posts: 11
Default

Thanks for all the advice. I guess I'll keep driving it with the idea I'll sort out the overmileage at the end. Maybe I'll buy it out to keep it or maybe I'll want a new S4 after 3 years and use that as leverage to help with the extra miles. Or maybe I'll just get an RS7 at that point. :-P
__________________
Current Ride:
2014 S4 P+ in Phantom Black on Black Alcantara
Navi / Sport Diff / B&O / Side Assist

Previous Rides:
2011 BMW 328xi Coupe
2002 BMW 325xi Sedan
1997 Nissan Maxima SE
MaxSport730 is offline   Reply With Quote
Old 08-09-2014, 02:58 PM   #13
AudiWorld Member
 
Dr Chill's Avatar
 
Join Date: Nov 2006
Posts: 363
Default

Either buy it at lease end or sell it to a used car dealer like car max. They don't have to pay sales tax and they just buy it from Audi Financial for roughly the same as your buyout before sales tax.
__________________
2012 Audi S4 Monsoon Gray
2014 Audi S6 Estoril Blue
2015 A3 TDI
2015 Z/28
Dr Chill is offline   Reply With Quote
Old 08-09-2014, 03:55 PM   #14
Audiworld Junior Member
 
Join Date: May 2014
Location: Southern NJ
Posts: 27
Default

Quote:
Originally Posted by Dr Chill View Post
Either buy it at lease end or sell it to a used car dealer like car max. They don't have to pay sales tax and they just buy it from Audi Financial for roughly the same as your buyout before sales tax.
How far in advance before lease end can you sell it?

P.S. that's a huge signature...
__________________
2014 S4 | Premium Plus | Navigation | B&O | Side Assist | Black Optics | Sports Differential | 6MT
AudiS4SD is offline   Reply With Quote
Old 08-09-2014, 04:24 PM   #15
AudiWorld Member
 
Dr Chill's Avatar
 
Join Date: Nov 2006
Posts: 363
Default

Anytime during the lease. Last two cars I sold before lease end, I made $3000 and $7000 on. That's because Porsches and Audis give lower residuals on their leases than BMW/MB and have good resale value.
__________________
2012 Audi S4 Monsoon Gray
2014 Audi S6 Estoril Blue
2015 A3 TDI
2015 Z/28

Last edited by Dr Chill; 08-09-2014 at 04:29 PM.
Dr Chill is offline   Reply With Quote
Old 08-09-2014, 04:52 PM   #16
Audiworld Junior Member
 
Join Date: May 2014
Location: Southern NJ
Posts: 27
Default

Quote:
Originally Posted by Dr Chill View Post
Anytime during the lease. Last two cars I sold before lease end, I made $3000 and $7000 on. That's because Porsches and Audis give lower residuals on their leases than BMW/MB and have good resale value.
That's pretty good. How long did you have the vehicles and how many miles when you sold them?

How does this process work exactly? To expand from above: let's say you have $10k remaining to pay on the lease. If you sell to CarMax, they will take the lease from AFS and pay them Residual + $10k? Then where does the potential profit come from?
__________________
2014 S4 | Premium Plus | Navigation | B&O | Side Assist | Black Optics | Sports Differential | 6MT
AudiS4SD is offline   Reply With Quote
Old 08-09-2014, 05:51 PM   #17
AudiWorld Member
 
Dr Chill's Avatar
 
Join Date: Nov 2006
Posts: 363
Default

Any car dealer can buy the car from the finance company that owns the car, just like the leaseholder can. Only difference is that the leaseholder must also pay the local sales tax. Sometimes the buyout is different for the lease holder than for the dealer.

Just call and get your pretax buyout from AFS beforehand so you know how much is owed when you go to carmax or equivalent.
If your buyout is less than your cash offer, then the dealer buys the car from AFS and gives you a check for the difference.

Last edited by Dr Chill; 08-09-2014 at 05:53 PM.
Dr Chill is offline   Reply With Quote
Old 08-10-2014, 06:33 AM   #18
Audiworld Junior Member
 
Join Date: May 2014
Location: Southern NJ
Posts: 27
Default

Quote:
Originally Posted by Dr Chill View Post
Any car dealer can buy the car from the finance company that owns the car, just like the leaseholder can. Only difference is that the leaseholder must also pay the local sales tax. Sometimes the buyout is different for the lease holder than for the dealer.

Just call and get your pretax buyout from AFS beforehand so you know how much is owed when you go to carmax or equivalent.
If your buyout is less than your cash offer, then the dealer buys the car from AFS and gives you a check for the difference.
Cool, thanks for the clarification.
__________________
2014 S4 | Premium Plus | Navigation | B&O | Side Assist | Black Optics | Sports Differential | 6MT
AudiS4SD is offline   Reply With Quote
Old 08-15-2014, 12:14 PM   #19
AudiWorld Newcomer
 
Join Date: Jun 2014
Posts: 8
Default

@DrGP
I am new to the whole car buying/trading world. This is my first Audi S4 lease as of 2 months ago. I am not sure what you mean trade the car in for another car at the end of the lease, or even now. How would that work since it's a leased car.
Pardon my ignorance, but unfortunately I am a total noob when it comes to finances such as these.
hiter202 is offline   Reply With Quote
Old 08-15-2014, 02:44 PM   #20
AudiWorld Member
 
Join Date: Sep 2012
Posts: 369
Default

Quote:
Originally Posted by hiter202 View Post
@DrGP
I am new to the whole car buying/trading world. This is my first Audi S4 lease as of 2 months ago. I am not sure what you mean trade the car in for another car at the end of the lease, or even now. How would that work since it's a leased car.
Pardon my ignorance, but unfortunately I am a total noob when it comes to finances such as these.
It doesn't matter that it is leased. Leasing is just a form of financing. You can buy it out or trade it in like any other financed car whenever you want. The dealer buys the car out of the lease, just like paying off a loan on a non-lease trade-in.
RickFLS4 is offline   Reply With Quote
 
 
 
Reply

Thread Tools Search this Thread
Search this Thread:

Advanced Search

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is On
Trackbacks are On
Pingbacks are On
Refbacks are On



All times are GMT -8. The time now is 03:07 PM.


Copyright 2014 AudiWorld.com Audi Enthusiast Community