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Dollars, rates and residuals ...

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Dollars, rates and residuals ...

 
Old 04-02-2019, 11:31 AM
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Originally Posted by enduser View Post
This seems like a logical fallacy. Wouldn't you want cash in the bank more than equity in a depreciating asset?
Technically you're correct, but the prospect of shelling out $90K for a new car at the end of the e-tron lease vs. half that if I trade the e-tron in after 3 years of ownership is scary. I guess that's why I've been buying pre-owned cars for the past 15 years...
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Old 04-02-2019, 11:34 AM
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It would be incredibly foolish to put the entire (err, any) value of your trade towards the e-tron lease. Conduct even 5 minutes worth of research as to the reasons why. Handle your current vehicle as an entirely separate transaction (preferably a private part sale to maximize proceeds), deposit and invest the funds from the sale (if not in the market, at the least in a high yield savings account...PNC...CIT, etc) and use the periodic withdrawal of those funds to offset your lease payment (if necessary).
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Old 04-02-2019, 11:40 AM
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Originally Posted by peteh2 View Post
It would be incredibly foolish to put the entire (err, any) value of your trade towards the e-tron lease. Conduct even 5 minutes worth of research as to the reasons why. Handle your current vehicle as an entirely separate transaction (preferably a private part sale to maximize proceeds), deposit and invest the funds from the sale (if not in the market, at the least in a high yield savings account...PNC...CIT, etc) and use the periodic withdrawal of those funds to offset your lease payment (if necessary).
a private sale does not ensure maximum proceeds - it can, no doubt about it, but also at the cost of time, and forfeiting the sales tax credit afforded. Always a balancing act
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Old 04-02-2019, 11:43 AM
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Originally Posted by peteh2 View Post
It would be incredibly foolish to put the entire (err, any) value of your trade towards the e-tron lease. Conduct even 5 minutes worth of research as to the reasons why. Handle your current vehicle as an entirely separate transaction (preferably a private part sale to maximize proceeds), deposit and invest the funds from the sale (if not in the market, at the least in a high yield savings account...PNC...CIT, etc) and use the periodic withdrawal of those funds to offset your lease payment (if necessary).
I agree, and I fully understand why, but it's just so much easier to drive to the dealer, give him my old car and drive away in a new car...
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Old 04-02-2019, 11:45 AM
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Originally Posted by e-tronDriver View Post
So, given that I want to trade in my current car @ around $25,000 would I be better off just buying the e-tron? It would be nice to have some equity value in the e-tron down the road when I decide to trade it in, as opposed to having no equity at the end of the lease.
That becomes a very personal decision, and one that you're probably better off discussing with a financial professional

that being said

if it were me, I would do one of two things

1. use the smallest necessary cash, from proceeds of the trade, to get into the new car, and get a check back for the remaining portion, and invest accordingly
2. use all of the equity from the trade in towards a one pay lease on the new car

to do a conventional amortizing lease and bury a whole bunch of cash/trade in for the mere sake of liking the number in the envelope better, makes no sense to me - it's the same money, just when you spend it. Further, unless it's on a one pay lease (state dependant), all that money might be at risk of loss should something catastrophic happen to the vehicle. Far too big a risk to take imho

As far as buying vs leasing, having done it every which way myself (cash, finance, lease), it again, is situational. There is no better nor worse way, only different. If my driving habits were such that a lease was doable, that is my personal preferred way. I see no upside to ownership of a car. Unfortunately I drive too much, so it's not practical for a daily car to lease. One might have a tax advantage for you as well, again, depending on the situation.

Last edited by SCarGuy; 04-02-2019 at 11:48 AM.
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Old 04-02-2019, 12:01 PM
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Originally Posted by e-tronDriver View Post
I agree, and I fully understand why, but it's just so much easier to drive to the dealer, give him my old car and drive away in a new car...
Car dealers have to make money on its deals on average only. Some transactions they make less or even lose money, and others make up for that. You are giving away money to the dealer for your convenience, and I thank you for that so that I can be on the other side of the average.
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Old 04-02-2019, 12:24 PM
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Originally Posted by enduser View Post
Car dealers have to make money on its deals on average only. Some transactions they make less or even lose money, and others make up for that. You are giving away money to the dealer for your convenience, and I thank you for that so that I can be on the other side of the average.
You're welcome. I'm pretty good at making deals on car purchases, but this one will be tough; I don't think any dealers are going to lose money on the e-tron, at least at the beginning.
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Old 04-02-2019, 09:15 PM
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I've been running some numbers using this calculator. Lots of options and lots of info for decision making.

Auto Lease Payment Comparison Calculator

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