XLDB

I am in the market for a 2019 Audi Q5 Prestige. I am able to write a check for the car or lease it. In doing my shopping, I try to make all the variables I am requesting as similar as possible (i.e. MSRP, term, $0 out of pocket, money factor, residual, etc.). I then compare the pool of the lease payments over the term of the lease, add in the residual (all taxes, etc.) and then compare that to the cost if I just wrote a check for the car from the start. I am wondering if there are any rules of thumb in comparing the lease + residual pool of money to the write a check for the car pool of money, and if those two pools are within X dollars, it makes sense to do one vs. the other. Note I am not factoring in lost earnings on the money if I invested it instead of using it to buy the car. Right now I am seeing anywhere from $4,000-$6,000 in "savings" with the outright purchase pool vs. the lease + buyout pool. Those are big amounts to me and make me more inclined to write a check for the car. I hope this makes sense what I am asking and any feedback would be appreciated. Thank you.

PS. I do like having the flexibility to walk away after the lease expires, and holding onto my money (but at some point the higher cost to lease doesn't seem the prudent way to go to me, and that is what I am trying to figure out).

BMT

I usually keep my cars for 10 - 12 years (assuming they last that long, of course). When my previous car turned 12 this year and started having mechanical problems, I knew it was time to start looking and after a few weeks of research, I ended up buying a 2019 Q5 Prestige. Writing a check for the car was an easy decision for me since I plan to keep the car for so long. I did briefly consider financing and investing the money instead but ultimately decided to just buy the car and be done with it. I can't speak to the lease aspect since I never considered it but I'm curious how long you think you're likely to keep the car if you do decide to just buy it outright?

XLDB

That's a big unknown for me. The longest to date that I have owned the same car is about 6 1/2 years. If I knew I would keep it so long, buying it would be the only choice. I am more curious that since these Audi's seem to have such high lease payments, that it only makes sense if I buy vs. lease.

SCarGuy

I’m not aware of any car where lease payments + buyout are less or even equal to an outright buy. The lease always costs more, total, but also mitigates various risks as well. YMMV. There is no one way that is better or worse when all factors are considered.

XLDB

I would never expect the lease + buyout to be less than if I just did a straight purchase. Let me give an example. In my current Lexus lease, the lease + buyout pool of money was within $1,000 of the amount had I just purchased the car outright. So I went with the lease. The $1,000 "excess" was totally worth it to me to have the ability to just walk away at lease end. However, if that differential had been $3,000-$4,000, I may have changed my mind and purchased the car at the beginning. What I am trying to assess, is at what dollar amount excess would any of you go the lease + buyout route, vs. purchase, if you really wanted a specific car? Less than a $1,000 differential, less than a $3,000 differential, or what amount? Thank you.

SCarGuy

There would be almost no dollar amount where I’d write a check for a car vs leasing unless my miles was so high per year it was unavoidable (I’ve been in that situation before, ie my S8, so I bought the car with that purpose in mind ). I have zero desire to own a “regular” for lack of a better term, car anymore. I vastly prefer leasing. I like being able to get something new, not deal with actual depreciation and especially not tying up cash I can use towards more fruitful and profit generating endeavors. YMMV

edwyun

I usually buy my cars because I put a lot of miles on them (usually 20-25K per year). But with more tech coming sooner each year and the costs I experienced with servicing an Audi car after 100K miles, I decided to lease this time around. More specifically, I did a one-pay lease to get a good deal, get the numbers and MF lower than a typical lease, and save a few thousand off a normal lease. Plus, I got all the extra miles I needed by trading in my old Audi. I know people talk about one-pay leases and what would happen if the car was totaled/stolen the next day (given that you paid the lease up front). But if you read paragraph 24 of the Audi lease agreement, it should allay such fears (though technically speaking you probably would lose the tax you paid up front). YMMV.

XLDB

Thanks for the suggestion. Also, what does YMMV mean as I have seen it a few times in this thread?

BMT

YMMV = your mileage may vary

Dustin Fennell

YMMV = your mileage may vary

Means your experience may not be the same as the person who posted