pagla6

I have usually purchased the vehicles driven by my wife but considering leasing now due to my experience with high drop in value and trade-in desirability if the vehicle has an adverse carfax history due to an accident.

This happened to my wife's GL and despite being fully repaired in a Mercedes approved facility with all OEM parts, none of the dealers were enthusiastic about taking it In a trade-in.

According to several dealers, the luxury car buyers do not purchase used cars with repair history in Carfax, and the trade-in value depreciates markedly.

In any case, while making a deal for Q7, the head of finance indicated about $6000 savings by paying the entire lease amount up front rather than in the usual 36 installments.

Does anybody have experience with this and are there any cons of paying the entire amount up front, asides from a major cash outlay.

Thanks!

mbr

No experience with this as we also usually purchase vehicles. By leasing instead of buying, you are paying interest (lease factor), even if you pay all up front, so while you avoid a drop in resale value if have an accident, you overall pay more for the car. I guess the question is which is higher, the loss of resale value from an accident or the cost of the lease as both could be several thousand dollars.

pagla6

According to my dealer, 70% of the cars they sell are leases.

Also, the manufacturers inflate the residual value to make leases more competitive. Usually, the market value of the car at lease turn-in is much less than the residual value stated on the lease contract.

Two years ago, my dealer got BMW to take $4000 off the residual value of my 3 year old 7 series, for me to purchase it ( It was a special order, low mileage car).
In brief, you may pay less for a lease due to inflated residual value, avoid the trap of adverse Carfax, and the hassle of trade-in negotiations.
Also, the automobile technologies and features are progressing at a much faster rate these days than in past; maybe an attractive E-Tron will be here!

mbr

That does make sense if you want a new car every 3 years, but we usually keep our cars 4-5 years. By then, the price has depreciated enough that a prior accident probably will only hurt resale value by $1-2k at most

Ray_QT

The major benefit is that you save a lot in interest (the 6K you mentioned), and no monthly payment to worry about.

The only drawback I can think of is that if the vehicle is totaled early in the lease, all that money is gone. Don't forget to get GAP insurance.

jvzanetti

How's the RV and MF?

pagla6

RV is 63% on 36 months, 7500K miles/yr lease.
MF, I believe was 0.00206; I don't have the paper at hand.

This RV is for Prestige cars; I believe it varies depending on the trim level but not by individual options within a trim level.

pagla6

Sorry, MF is 0.00179 for 36 month, one pay lease.
0.00206 was for a 48 month one pay lease.

I have been told that Audi changes rates Quartely so rates are fixed till end march.

According to Finance manager, "rates are terrible now and should get better."

I have no way to ascertain whether these statements are true or just BS.

I ordered a Prestige Q7 in late Jan; build scheduled in 8th week of 2016; should have by early April.

jvzanetti

ok for RV but bad MF. Wish there is a purchase option to buy at full selling price and return to dealer after 36 months to get MSRP*RV back. If that's the case, high MF will not bother