Leasing vs buying stat
Thread Starter
Audiworld Junior Member
Joined: Oct 2015
Posts: 53
Likes: 0
Leasing vs buying stat
A sales guy recently told me that 80% of his customers lease which seemed high to me - is this because of personal preference/money situations or is there something about audis that makes them better to lease?
AudiWorld Senior Member
Joined: Nov 2015
Posts: 1,920
Likes: 11
From: GVRD, BC Canada
I agree with Thunder22. BMW is the lease king. They move a lot of cars through lease deals. Audi's don't do wicked lease deals compared to BMW. The downside with the BMW wicked lease deals is that the depreciation value of BMWs are so high because the used car market is flooded with them. Which means, if you are looking for an off lease vehicle, BMW will be a good pick.
On the other hand, Audi's hold their values better, at least, in the area where I live.
Here's a quote from a NY Times article (dated Jan. 8, 2015) about the auto leasing trend:
As to why leasing is popular: It makes expensive cars affordable to people who won't be able to afford it through regular financing or cash sales. Some just prefer a brand new car every 2 or 3 or 4 years. Some use it for business that allows you to charge the monthly lease payment as an expense.
On the other hand, Audi's hold their values better, at least, in the area where I live.
Here's a quote from a NY Times article (dated Jan. 8, 2015) about the auto leasing trend:
More than one out of every four new vehicles were rented, rather than bought, by American consumers — and the percentage choosing a lease has risen sharply over just the last two years. It is now roughly 27 percent, up from 22 percent in 2012, according to Edmunds.
Last edited by plat27265; Nov 15, 2015 at 09:56 AM.
AudiWorld Senior Member
Joined: Aug 2003
Posts: 1,136
Likes: 1
From: Los Angeles
Recent data suggest dealer may be right...
… according to recent Carintelligent (https://www.cartelligent.com/blog/wh...e-lease-or-buy) data, approximately 2/3 of all new Audi's are leased. My sense that for CA residents, or others with high automotive sales tax, that local number may be even higher.
For me, the flexibility of the lease typically includes maintenance, a guaranteed residual and an incentive for the dealer to turn over my car. So in the past five Audi's I have turned them in well before the lease ends for tempting upgrades. The advantage for the dealer is that they have a pristine CPO that will certainly turn a higher profit that the original sale and I get a new car every 1.5-2 years.
The consolation on my part, is to flexible on what car I lease. When I had my 2014 S5, I assumed my next Audi would be a SQ5 or an S6. However, the deal on the RS5 was too good to turn down and was an aspirational car for me.
Happy Motoring
Eric
For me, the flexibility of the lease typically includes maintenance, a guaranteed residual and an incentive for the dealer to turn over my car. So in the past five Audi's I have turned them in well before the lease ends for tempting upgrades. The advantage for the dealer is that they have a pristine CPO that will certainly turn a higher profit that the original sale and I get a new car every 1.5-2 years.
The consolation on my part, is to flexible on what car I lease. When I had my 2014 S5, I assumed my next Audi would be a SQ5 or an S6. However, the deal on the RS5 was too good to turn down and was an aspirational car for me.
Happy Motoring
Eric
AudiWorld Senior Member
Joined: Aug 2009
Posts: 1,806
Likes: 3
From: NYC
Most people lease. They are ok with always having a car payment and like the fact that in 3 years with no hassle they can get a new car. A lease payment is also lower than a finance.
Why I don't like leasing, you don't own anything. I like keeping cars for more than 3 years. There's a lot of fat hidden into leases. I feel like a low interest finance like .9% or 1.9% you pay less to the bank and dealer than a lease where you pay interest for the loan, a rental fee and all those other fees.
Why I don't like leasing, you don't own anything. I like keeping cars for more than 3 years. There's a lot of fat hidden into leases. I feel like a low interest finance like .9% or 1.9% you pay less to the bank and dealer than a lease where you pay interest for the loan, a rental fee and all those other fees.
AudiWorld Member
Joined: Jul 2015
Posts: 340
Likes: 35
From: ON, Canada
There is also a matter of limitations to consider when leasing. Things like mileage, modding, etc. And there is a matter of personal preferences (I hate driving someone else's car, hence I buy cars). And when you pay it off - it's yours to keep and has some equity in it, which you can use for trade-in for example. Or you can sell it in a rainy day and get some cash for urgent needs.
Last edited by asmi84; Nov 16, 2015 at 05:55 AM.
AudiWorld Member
Joined: Jan 2013
Posts: 443
Likes: 0
From: NW Burbs of Chicago
A couple have touched on the downside of leasing (for me...) - mods. Maybe it's just my understanding that's the flaw, though, rather than the lease restrictions. I see a fair number of people on these boards that lease what I would call "enthusiast" cars (S4/5/6, RSx, SQ5, etc), and I have to be missing something. Do leasers simply mod their vehicle and then return to stock before turn-in? Or, do they generally avoid modding?
What happens, in other words, if you tune your leased (S)Q5, and get slapped with the TD1 mod flag by Audi? Does it invalidate the lease in some way that you can be penalized for? Seems like it would, but despite having had something approaching 20 new vehicles, leasing experience is something that I completely lack. Also despite those 20 something vehicles, I would have to admit that only a small percentage has escaped a mod or 3 of some sort.
What happens, in other words, if you tune your leased (S)Q5, and get slapped with the TD1 mod flag by Audi? Does it invalidate the lease in some way that you can be penalized for? Seems like it would, but despite having had something approaching 20 new vehicles, leasing experience is something that I completely lack. Also despite those 20 something vehicles, I would have to admit that only a small percentage has escaped a mod or 3 of some sort.
Trending Topics
AudiWorld Member
Joined: Aug 2015
Posts: 347
Likes: 2
Similar argument to buying new vs. used. No way we could afford a new Q5 or 3 series BMW. Buy a used one 8+ years old or higher mileage later model, no problem. There's a nice sweet spot as the 3rd owner.
Car comes off lease, someone buys it as a CPO, then I pick it up cheap when they are done with it.
Car comes off lease, someone buys it as a CPO, then I pick it up cheap when they are done with it.
AudiWorld Stories
Bringing Audi to Life for Audi Fans
Top 10 Most Expensive Audis Ever Sold on Bring-A-Trailer
Brett Foote
10 Audi Features & Options We Miss the Most!
Joe Kucinski
Audi Recreates Crazy-Looking Speed Record Breaker From 1935
Verdad Gallardo
Coachbuilder Recreates the 1995 Audi TTS Concept
Verdad Gallardo
Every Audi V10 Car Ranked!
Joe Kucinski
9 Audi Designs That Aged Like Fine Wine
Verdad Gallardo
2026 Audi Q5 Buyer's Guide (Every Model Explained)
Brett Foote
Ranking Every Current Audi 'S' Model From Worst to First!
Joe Kucinski
10 Best Audis That are FINALLY LEGAL to Import to the U.S.!
Joe Kucinski
AudiWorld Member
Joined: Feb 2012
Posts: 450
Likes: 0
From: Florida, USA
Guess I'm in the 20%. I buy all my Audis new, often as orders, because I'm picky and rarely find anything I like in dealer stock. Audis have been great for resale, I've made money on all mine, trade in every couple years. That's extremely rare to not get taken on the depreciation like other brands. Been a great setup for me, because it's like leasing but I make money off it.
AudiWorld Senior Member
Joined: Jul 2008
Posts: 1,193
Likes: 14
From: RI
Guess I'm in the 20%. I buy all my Audis new, often as orders, because I'm picky and rarely find anything I like in dealer stock. Audis have been great for resale, I've made money on all mine, trade in every couple years. That's extremely rare to not get taken on the depreciation like other brands. Been a great setup for me, because it's like leasing but I make money off it.