sae

I've got a 1.8t, love it, but would like to order an S4 to replace it when my lease ends in July of next year. How long should I allow for this? 3 months? 6 months? Should I get on the list now?

Scott
1.8tqms tap stage 1

Scott W

Order it now & get out of your lease early if you have to. Buyouts are reasonable near e.o.l.

boxster

Lease buyouts are not usually reasonable toward the end of the lease. I've leased vehicles from five different lease companies and worked for six years for one of them, and I can say with certainty that it's almost impossible to get out of most leases early unless you're ready to pay.

The vast majority of residual values were intentionally inflated by finance companies to lower the lease payments to make them look competitive. My '97 Accord (supposedly good resale value, right?) is currently worth about $2000 less than my lease-end payoff. Lease contracts state that if you want to early terminate the lease, you have to pay the difference between the payoff and the fair market (wholesale) value of the vehicle, plus a fee. Using this formula, I'd have to pay the $2000 difference plus whatever the fee is, usually around $200. $2200 just to early-term the lease.

The other option is to pay the remaining lease payments and turn in the car early. Of course, you're out those payments, but it may be less than the early termination costs.

So, please, before you choose this route, review your lease contract and lease-end payoff to determine your liability if you do early term.

And, then order the S4 anyway! You can always use two cars, right?

-boxster
'00 1.8TQMS on the way (October?)
'00 S4 next spring (hopefully!)

Scott W

Enough money down up-front to put the payment where I would like it, i.e. on my last car (a 95 Eagle Talon Tsi AWD) please keep in mind that while these figures are in Canadian dollars, if you cut these figures in half, you'll get the idea!

Price of car: $ 29,500 (plus 15% taxes)
Term of lease: 4 years
Downpayment: $6,000
Monthly payment: $500
Buyout $9400

I sold my car for $21,500 in May of 99 (slightly modified). I bought it out the day before I sold it for $ 11,500 (approximately).

Although this is just my opinion, this has always seemed to work to my benefit.