Leasing mileage issues...
#11
AudiWorld Super User
I was in a similar situation. Mileage was way north of the lease total allowed. The dealer worked with me a bit on the negative equity since I was a getting a new Audi from them but they could not absorb it completely which is understandable. I should have owed more than twice what I ended up if I had simply turned in at lease end. Since I wanted something new anyway it worked out, but buying out the lease as you're interested was my 2nd option.
#12
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Thanks for all the advice. I guess I'll keep driving it with the idea I'll sort out the overmileage at the end. Maybe I'll buy it out to keep it or maybe I'll want a new S4 after 3 years and use that as leverage to help with the extra miles. Or maybe I'll just get an RS7 at that point. :-P
#13
Either buy it at lease end or sell it to a used car dealer like car max. They don't have to pay sales tax and they just buy it from Audi Financial for roughly the same as your buyout before sales tax.
#14
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P.S. that's a huge signature...
#15
Anytime during the lease. Last two cars I sold before lease end, I made $3000 and $7000 on. That's because Porsches and Audis give lower residuals on their leases than BMW/MB and have good resale value.
Last edited by Dr Chill; 08-09-2014 at 04:29 PM.
#16
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How does this process work exactly? To expand from above: let's say you have $10k remaining to pay on the lease. If you sell to CarMax, they will take the lease from AFS and pay them Residual + $10k? Then where does the potential profit come from?
#17
Any car dealer can buy the car from the finance company that owns the car, just like the leaseholder can. Only difference is that the leaseholder must also pay the local sales tax. Sometimes the buyout is different for the lease holder than for the dealer.
Just call and get your pretax buyout from AFS beforehand so you know how much is owed when you go to carmax or equivalent.
If your buyout is less than your cash offer, then the dealer buys the car from AFS and gives you a check for the difference.
Just call and get your pretax buyout from AFS beforehand so you know how much is owed when you go to carmax or equivalent.
If your buyout is less than your cash offer, then the dealer buys the car from AFS and gives you a check for the difference.
Last edited by Dr Chill; 08-09-2014 at 05:53 PM.
#18
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Any car dealer can buy the car from the finance company that owns the car, just like the leaseholder can. Only difference is that the leaseholder must also pay the local sales tax. Sometimes the buyout is different for the lease holder than for the dealer.
Just call and get your pretax buyout from AFS beforehand so you know how much is owed when you go to carmax or equivalent.
If your buyout is less than your cash offer, then the dealer buys the car from AFS and gives you a check for the difference.
Just call and get your pretax buyout from AFS beforehand so you know how much is owed when you go to carmax or equivalent.
If your buyout is less than your cash offer, then the dealer buys the car from AFS and gives you a check for the difference.
#19
@DrGP
I am new to the whole car buying/trading world. This is my first Audi S4 lease as of 2 months ago. I am not sure what you mean trade the car in for another car at the end of the lease, or even now. How would that work since it's a leased car.
Pardon my ignorance, but unfortunately I am a total noob when it comes to finances such as these.
I am new to the whole car buying/trading world. This is my first Audi S4 lease as of 2 months ago. I am not sure what you mean trade the car in for another car at the end of the lease, or even now. How would that work since it's a leased car.
Pardon my ignorance, but unfortunately I am a total noob when it comes to finances such as these.
#20
@DrGP
I am new to the whole car buying/trading world. This is my first Audi S4 lease as of 2 months ago. I am not sure what you mean trade the car in for another car at the end of the lease, or even now. How would that work since it's a leased car.
Pardon my ignorance, but unfortunately I am a total noob when it comes to finances such as these.
I am new to the whole car buying/trading world. This is my first Audi S4 lease as of 2 months ago. I am not sure what you mean trade the car in for another car at the end of the lease, or even now. How would that work since it's a leased car.
Pardon my ignorance, but unfortunately I am a total noob when it comes to finances such as these.