Volkswagen Passat 2005 and earlier

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Comments

  • altair4altair4 Member Posts: 1,469
    Well, you're in CA and I'm in PA. I deal with a small family-owned VW-only dealership. The techs are friendly and the car goes into the shop at the scheduled time. I bring my own oil and use the dealer's filter, etc. So the cost goes something like this:

    Oil: 4 x $4.29 (Valvoline Synpower 5w-40)
    Filter (the new oem "BIG" filter): $8.25
    Labor: $15
    Disposal Fee: $0.50

    Add in the tax, and it's right around $45. Get the owner's manual stamped and I'm out the door.

    $20 for the filter?!?!? Wow, that's quite a mark-up.
  • markcincinnatimarkcincinnati Member Posts: 5,343
    Typical cost here in Cincinnapolis (dealer) is $85, plus they always seem to add a buck here and there for such things as "solvents, washers, grommets and the like."

    I try to bring my own oil to cut costs, but the deal I have is now that I pay for the difference between the syn and non syn oil (since Audi is paying the difference).

    The oil change price on our 1 BMW was ALWAYS dead on (well practically) $100 -- but they washed the car (what a deal).

    If you are getting a dealer oil change for $65 with syn oil -- and you do not bring the parts or fluids, all I can say is "bargain!"

    From time to time my dealer has a $29.95 oil change special (fine print -- plus filter, plus shop cosumables). In that case it STILL comes to over $50 bucks and NO syn oil.

    If you get this kind of treatment for $45 (but you are bringing your own stuff) and are happy, you are clearly saving money.

    The rest of us -- even with Audis -- are apparently paying more.

    WOW -- $15 labor -- our labor rate is currently based on a "shop rate" of $80 per hour. I suspect the fraction, thereof is 1/4 hour.
  • altair4altair4 Member Posts: 1,469
    Yes, believe me, I'm pretty happy with a $45 synth oil change! Given that I have no garage, I'm more than willing to hand of $15, especially for my late winter oil change.
  • onlysurferonlysurfer Member Posts: 96
    Wish I were wealthy beyond markcincinnati's imagination, or had purchased the extended warranty, because as per dealer's service shop, it turns out that my 2002 VW Passat GLX 4Motion with 33,000 miles on it needs new break pads, rotors etc, at a cost $860!

    It's all because of my "driving habit" so these wearable parts are not covered although rest of the car is still under "bumper to bumper" warranty. I don’t think “extended warranty” would have covered this unexpected expense. I’ve never had to part with this much money to fix breaks of any of my past owned car. (Apart from a new Passat, list includes a Used Toyota Camry, Used Nissan Sentra, New Honda Accord, New Lexus RX300 and a New Honda Odyssey)

    Dec 28, 2006 will be a big day for me, when I've to return leased VW Passat. It may be the last day of my last ownership of any VW family product. It sure will be emotional day; perhaps heart will be crying but brain smiling...

    Cheers!
  • markcincinnatimarkcincinnati Member Posts: 5,343
    I have been writing here on edmunds for years now -- and I have written on at least 5 different forums. When I write on the German (or European) forums, I usually get around to writing:

    German cars (and European cars generally) are "breathtakingly expensive" to maintain and fix out of warranty. Only the very very wealthy can afford to own one of these cars without the safety blanket of extended maintenance and warranty plans (which ARE available).

    This is an area where I want to be wrong. And, yes there are people with German cars with 100,000 miles on them with only routine maintenance as their costs.

    If you can bear to go elsewhere, I think you can cut these costs almost in half -- as I am almost certain the charge from VW for the rotors and pads is "outrageous" -- OEM equivalents cost less, much less. These replacement parts are not seconds or poor quality (generally) -- but they will come from elsewhere, not a VW dealer. Still, my gut tells me you will pay about $500.

    What "driving habit" would wear both pads and rotors after only 33K miles -- even left foot breaking (the Michigan System) wouldn't do that!

    My barber has a new VW beetle -- at 10,000 miles, he says it is the best car he has ever had (he is in his 40's).

    I do not think, therefore, that this would be any different if you instead had a Volvo or Bimmer or Audi -- except there would be no charge with the BMW or the Audi for the first 50,000 miles.

    Repeat after me: breathtakingly expensive. . . .

    IMHO, I cannot afford to take the risk to have "unprotected German cars."
  • birdboy1birdboy1 Member Posts: 39
    Thanks all for your info and discussions about cost factors of vw ownership. i too paid 400.00 for rear brakes at 30k and I brake lightly. Other than the coils, dash rattles, chattering wipers and turn signal flashers the car has been reliable, oh yes the check engine 4x...I am ready for my 40k service and have gotten 3 different prices from 3 different dealerships . lowest was 329.00, next 379.00 and finally 400.00. What have others paid?? It seems to be nothing more than check this and that for the most part .
    thanks for the comparison of keeping the car out of warranty verses buying a new one.. i am uneasy keeping it as it could be a money pit..
    like most of us, I love the ride , i mean I really love it .. but the frequent trips to the dealer I hate.. anyhow thanks for your reading time
    BTW, I just put a set of Nokian performance all weather tires on for the winter driving in the northeast and the ride is very nice, they say they can be ran all year as well.
  • flyfisherflyfisher Member Posts: 8
    My family is making the decision rather to get a VW Passat or a Volvo V70 and I was wondering if anyone on this list had owned both vehicles and had any input. I realize that the responses may be a bit biased as this is a VW forum. Both models are 2004 certified used. The VW has 11,000 miles, leather, esp, front wheel drive and other standard features. The VW is the 2.4 base model with premium and winter packages. The difference is price is about $3000 more for the Volvo but it includes two routine maintenance trips ($650 according to the dealer) and the additional warranty is about 16,000 more miles.
  • georgekgeorgek Member Posts: 50
    Find a WalMart near you that has an auto center. The one in Carlisle will do a Mobil 1 0W40 plus filter change for about $35.
  • georgekgeorgek Member Posts: 50
    I have a 2000 Passat 1.8T wagon, my wife a 2001 Volvo XC70.

    Both have been reliable. The main differences are that the Passat is more fun to drive, carries more cargo (perhaps not true for an AWD Passat) and gets 28-32 mpg; while the Volvo is more luxurious, has more comfortable seats and feels more spacious in front because the dash intrudes less into the cabin. It costs more and gets about five-to-seven fewer mpg with similar road conditions.

    The Volvo is noisier and the ride and handling are not as good as the Passat's. While the higher stance and semi-suv tires of the XC account for some of this, I also have driven most other V70 variations. Only the high performance R version handles better than the VW, and it has a stiff, noisy ride and costs well over $40K.

    All in all, both are good, safe cars. Compare them carefully, then choose based on your own priorities.
  • onlysurferonlysurfer Member Posts: 96
    I did consider Volvo XC70 (as well AUDI and BMW) before deciding on VW GLX 4Motion, because of perceived low cost of payments, which not necessarily translates to low cost of ownership when all repair bills are added.

    Any way, after my recent experience, I might go back to Japanese or start with a first American car. For example, heard that Chevy Malibu MAXX or some of the Mazda and Subaru offer performance, may be not as good as German models, but somewhat comparable. I, being a cost conscious buyer, plan to include them while excluding VW family products from my shopping list next time.

    So, if you don’t mind paying more as an average case scenario for whatever “more” you think you are getting then go with a VW. Personally, I might get a brand new Malibu MAXX LT or Mazda 6 for about the same if not less. Again, Performance will be less if not the same but who cares as long as it’s acceptable to the owner?!
     
    Markcincinnati, thanks for a follow up. Does extended warranty cover premature break repairs? I drive in Boston and a bit on the aggressive side, just like, drive like you live!
  • fish8fish8 Member Posts: 2,282
    "The VW is the 2.4 base model"

    Do you mean the 1.8t is the base model?

    What is the price you are being quoted for the Passat? With all the incentives on VW's, you would probably get a great deal on a Passat.
  • flyfisherflyfisher Member Posts: 8
    Sorry for the confusion. The line should have read the Volvo is the 2.4l base model. The Passat is 1.8T GLS and the price for the used is 22,999 (which I have since found out is not certified) and the price for new is 23,400 after the incentives. The Volvo is priced at 25,959 and is certified.
  • fish8fish8 Member Posts: 2,282
    No problem!

    So, for a used Passat 1.8t GLS they are asking $22,999. That is way too high and especially for a non certified car. I bought my brand new GLS 1.8t automatic for $20,900 back in June. What year is the Passat?
  • flyfisherflyfisher Member Posts: 8
    Sorry for the confusion. The line should have read the Volvo is the 2.4l base model. The Passat is 1.8T GLS and the price for the used is 22,999 (which I have since found out is not certified) and the price for new is 23,400 after the incentives. The Volvo is priced at 25,959 and is certified.
  • flyfisherflyfisher Member Posts: 8
    The used Passat is a 2004 1.8T GLS with leather, heated seats, and ESP. The new one has leather, ESP, Telematics and is $23,400. Thank you so much for your input? Do you like your Passat?
  • arjay1arjay1 Member Posts: 172
    With 72,xxx miles on my 2000 Passat I have only had to replace my rear brakes pads. Even using my local repair shop, not a VW dealer it cost $172.85 for the rear pads. This was with 54,xxx miles on the car. I recently had my car in for its first set of tires and the front pads are still in good shape. I could see over $800 from the dealer for rotors and pads on all four wheels and that is why I almost never go to my VW dealer.
  • profvhprofvh Member Posts: 31
    My 2002 Passat 1.8 wagon is just turning 30,000.

    This morning I took it in to my dealer for an

    oil change and possible rear brake pads. The oil

    change cost 26.95 (non-synthetic oil). The

    service manager told me that I still had a good

    30 percent left on the pads. Since I live in

    Houston and do alot of driving in heavy traffic

    I felt sure that the pads would be worn out.

    My dealer (DeMontrond VW) always provides quick,

    courteous and quality service.

     

    This car has needed only one headlight replaced,

    the glove box door lock replaced and just recently

    new Michelin Pilot tires. I have had many US

    cars including Cadillac, 4 Mercedes, 5 Honda

    Accords and 1 VW. Only 2 Mercedes cars would rank

    above this super Passat. One of the Hondas was

    very good and two of them had substantial problems. This Passat runs like it did when new;

    it is fun to drive and I have a good VW dealer.
  • fish8fish8 Member Posts: 2,282
    I LOVE my Passat. I have had zero problems (except a dash rattle that was fixed) in the 7000 miles I have had my car. It has been the best car I have ever owned.
  • mrjettemrjette Member Posts: 122
    Can anyone tell me in plain English what the Electronic Stabilization Package (ESP) does to the performance of the car? It comes as an included item on the '05 passat. If the dash button is pushed so it is 'off', the yellow "Attention" (!) light in the instrument cluster goes on. I am just not sure what the purpose of it is.
  • jrct9454jrct9454 Member Posts: 2,363
    Stability Control uses the throttle and ABS system to make emergency adjustments to speed and direction in cases where the software detects that traction and/or control are being lost. It can literally save your life, and it certainly can save a lot of property damage, both to your car and innocent bystanders.

     

    DO NOT TURN THE SYSTEM OFF. The option to do so is for very narrow circumstances, like testing the car on a dyno machine for emissions or diagnostics.
  • irish20irish20 Member Posts: 7
    Hello all. We just added a used 2002 GLS V6 in primo condition to go along with our 04 GLX. Unfortunately this one does not have the cold weather package. Is it possible to add it without major difficulty or expense? We're really only want it for the heated seats as it gets kinda nippy in Michigan this time of year. Are the wiring harnesses for the switches already in the dash and within the seats? Just wondering. Thanks.
  • mrjettemrjette Member Posts: 122
    Thanks for that clear and precise explanation. Wish the salespeople could say it with such clarity.

     

    I noticed when slipping a bit in the snow the other morning that the attention ("!") light on the dash flashed on and off. Apparently the ESP was doing its thing due to lost traction. At any rate, I'll make sure not to fiddle with it.
  • brozhnikbrozhnik Member Posts: 172
    Agreed: DO NOT turn off ESP. It's a great feature.

    (1) For more info on it: try http://www.esceducation.org/about_esc/index.shtml

     

    (2) I'm aware of 3 studies, one at the University of Iowa, the others by Mercedes and by Toyota. All 3 found, using different methodologies, that it reduces the likelihood of getting into an accident by over 30%. That's big insurance.

     

    (3) An example of how it works: a friend of mine had to brake hard and steer hard at the same time (to avoid another driver who ran a red). My friend is a former race-car driver and really knows driving and cars. He is sure that any previous car he's owned would have gone into a skid and had an accident. But braking hard/steering hard is exactly the kind of situation ESP is designed for. It worked. No skid, no accident.
  • tdi_tantdi_tan Member Posts: 60
    My 2002 Passat 1.8 wagon is just turning 30,000.

    This morning I took it in to my dealer for an

    oil change and possible rear brake pads. The oil

    change cost 26.95 (non-synthetic oil).


     

    I'm sure you're aware, VW and Audi has issued a bulletin on 1.8T sludge. They require you to use oils that meet the VW502.00 standard and the new (and much bigger) oil filter. The VW502.00 is not a new requirement for the Passat (please read your owner's manual), and only certain synthetic oils meet the VW502.00 requirement.

    http://www.vw.com/SP/pdf/oilchart.pdf

     

    I urge you to take your car back to the dealership and request a proper oil change, even if you have to pay the cost difference between Castrol Syntec 5w40 and Castrol GTX 5w30.
  • flyfisherflyfisher Member Posts: 8
    We ended up going with the Volvo. I found the seats to be a bit more comfortable and I also know of a very reliable Volvo mechanic, but did not know a good VW mechanic. The Passat is a really nice car. Driving them side by side showed me that tiptronic makes the Passat feel sportier than the volvo, but the ride in the volvo was better. For me it was like picking between my favorite two deserts.
  • bonesybonesy Member Posts: 5
    Hi everyone,

     

    Just leased a 2005 Passat GLS. Can I use the low rated gasoline in this car (89) I believe? The manual recommends higher quality gas.

     

    Also, I do love this car in about every way. One thing I did find annoying was the trunk. It is pretty difficult to close it. Is this some sort of tightness issue or does everyone else have this problem.

     

    Thanks all for reading.
  • fish8fish8 Member Posts: 2,282
    Can I ask why would you want to use lower octane gas than recommended? If the owner manual advises high octane to get the best performance out of your car, why wouldn't you use 91 or 93? Here in Ga, the difference between the grades is only $.20 per gallon (+/- $3 per tank). If using high octane is not financially possible, maybe you bought too much car. Just my honest opinion......
  • feilofeilo Member Posts: 128
    Its false economy to use a lower octane gas. Not worth it as it amounts to less than a cup of java per day. Stay with the good stuff; your Passat will "love" you for it.
  • altair4altair4 Member Posts: 1,469
    Okay, here's the math lesson...

     

    Assumptions: 12,000 miles a year, $0.20 price difference per gallon between 87 and 93, and 23 mpg annual average fuel consumption.

     

    12,000 miles/23 mpg = 521.7 gallons of fuel.

    521.7 x 0.20 = $104.34.

     

    That's $2.00 a week, or $0.286 a day, or $0.0087 a mile. Seems worth it to me for maximum engine performance and fuel economy.

     

    And if you are considering midgrade, cut these values in half (assuming $0.10 price spread).

     

    Ahhh, it's a leased vehicle....
  • markcincinnatimarkcincinnati Member Posts: 5,343
    Sure you can use lower octane rated gas. The engine electronics will 99% ensure that you do not harm the engine via the lower octane gasoline.

     

    One of the things that happens when you use lower octane rated gasoline in an engine that needs higher octane to "live up to its potential" -- IT COSTS MORE!

     

    The reverse, however, is NOT true -- using higher than needed gas in a car than requires only regular, will not gain anything -- other than a lighter wallet.

     

    One reason that using regular in a premium gas car costs more is that the regular generates less power per "unit" of fuel. There are more technical and chemically accurate explanations, but look at it simply -- to enjoy the power you want and can get with premium fuel you will burn more regular fuel.

     

    Using regular in an engine designed for premium is a false economy -- you will not save $ by cheapening out on the fuel.
  • robotixrobotix Member Posts: 3
    Hi Folks,

     

    I'm in the process of purchasing a 2005 passat GLS 4 motion from chicago. I'm being offered a tag of 25K which i feel is decent considering the fact that none of the other dealers wanna go below that price.

     

    He is also offering me Autoguard worth $499 at no cost...ever heard of that ? What is it ? I'm sure no dealer would offer you something worth 500 bucks at no charge to u....this makes me kinda suspicious....
  • fish8fish8 Member Posts: 2,282
    Have you asked your dealer what it is? Sounds like some sort of paint protectant.........the old saying comes to mind......nothings ever for free.
  • georgekgeorgek Member Posts: 50
    Photos and story are online at the VW-only web site.
  • bonfigbonfig Member Posts: 14
    I have a 94EX, it has 117000 on it and it runs great. I have been in the market for a four door.

    I test drove a 01 accord with 47000 miles on it.

    Ther was a rattle in the dash,the suspension felt

    soft also. My 94 felt tighter,more power, and they both had the v-tech. My 94 was a 4-speed

    auto., the 01 was a 5-speed manuel! Honda's

    quality has gone down! With that said I have decided on the passat. I was looking at an 03 with the 1.8 turbo. I have heard good and bad on

    reliability. My two buddies have the TDI jetta's

    and they love them. Please someone ease my concerns alittle.
  • fish8fish8 Member Posts: 2,282
    Buy the Passat and enjoy!!!!!
  • krzysskrzyss Member Posts: 849
    I guess that 2003 Passat is a used one.

    Ask for receipts for oil changes. They must be 5000 miles apart.

    1.8T was prone to sludge if improper oil was used (most of the dealers used wrong oils). VW extended warranty but one has to prove that car was maintained properly.

    Do not buy used Passat without maintenance documentation.

     

    Krzys
  • bonfigbonfig Member Posts: 14
    Thanks for the info. On the oil does it have to be the synthetic? What is the best oil and weight

    to use. thanks again.
  • altair4altair4 Member Posts: 1,469
    5w-40 Synthetic meeting VW Spec 502.00. See:

     

    Http://www.vw.com/SP/pdf/oilchart.pdf

     

    for acceptable oils. BTW, DON'T use the Valvoline Synpower in 5w-30. Per Valvoline, it doesn't meet VW Spec 502.00.
  • bonfigbonfig Member Posts: 14
    I found another car. It is the GLX5m. It has

    48,000 miles on it. I have read nothing but good

    things on the V6. Is there anything I need to look out for? The dealer is asking 17,991, I was

    going to offer 15,000.00.
  • bonfigbonfig Member Posts: 14
    thanks for the info.
  • fish8fish8 Member Posts: 2,282
    Again, that's allot of miles for a Passat to buy used. I, personally, would never buy a used VW. if you do buy a used Passat, a extended warranty would be vital.
  • bonfigbonfig Member Posts: 14
    It was an 01. It is in really good shape. where

    can I look for an extended warranty? Thanks again for the info.
  • fish8fish8 Member Posts: 2,282
    Ask your nearest VW Dealer for details. In my honest opinion, I would only buy an extended warranty from VW. It is too risky buying from a third party. I have heard too many times where something is not covered under a 3rd party warranty.

     

    2001? You are asking for trouble if you buy this car. VW's are great cars, but tend to get very expensive to maintain and repair. A 2001 model year car is no longer in warranty and this makes an extended warranty even more vital. I have leased all my VW's which means I will never own the car when the warranty expires.
  • onlysurferonlysurfer Member Posts: 96
    Hi,

     

    Following message has flashed for a few times on the message center of my 2002 Passat GLX 4-motion.

     

    "STOP" followed by "BREAK FAULT" followed by "SERVICE MANUAL".

     

    I took the car to dealer who couldn't diagnose the correct code (so they recommended to change rotors and pads!). They did the 35,000 miles service (car has 33,800 miles) while car was there (but again forgot to top off power steering fluid)

     

    Any way, the message came back again, which usually goes away once I restart the car - kind of like how Microsoft windows!

     

    please reply if you know what this code might be. Thanks very much in advance.
  • markcincinnatimarkcincinnati Member Posts: 5,343
    I assume you are paying cash (100%) for a used car at some number around $15,000.

     

    I have no idea your annual milage needs, but I'll just go with 15,000.

     

    If you acquire a car with some 48,000 miles on it and keep it ~42 months, you will put 52,500 miles on it and you will then have a car with 100,500 miles on it and you will be in month 43 of your ownership.

     

    Your real cost in money to acquire the car will have been $15,000 (you will have this much less in your bank account). Your monthly cost for having this car for this term would be $357.00 (assuming you paid cash fo the car). I can only assume you would have 0 warranty and that all maintenance and repairs would have had to have been done by you -- financially.

     

    In theory, you will spend about $450 per 15,000 miles or $1575. If you need tires, figure another $500. Again assuming cash up front your real out of pocket cash would be $406.54 per month -- if nothing, period, needs to be repaired.

     

    The car would have some residual value -- but remember the opportunity cost. If you pay cash, you are instantly "out" the $15,000. If you finance, the payments will be higher than noted above.

     

    Please take a look at how much car you can get on a $0.00 money down, 42 month lease for -- just for the sake of argument -- $356.04 per month.

     

    I picked that number "as if" you will live in a perfect world, where NO REPAIRS, period, have to be done on your used car already with 48,000 miles on it (you determine if this is likely or unlikely).

     
    And, I wanted to assume some residual value for the used car if you purchased it and kept it for the term and miles estimated above. I wanted to "even out" as much as possible (subjectively) the cost of the used car and my alternative suggestion.

     

    If you lease the car as I noted, you will have spent $2,100 less "out of pocket." At the end of the lease you will neither own the car nor have to "worry" about trade in or direct sale issues -- which has to be worth something -- perhaps $25 per month?

     

    Today, actually even better from December 27, through February 28th, you will be able to lease a brand new car with factory warranty (and perhaps factory maintenance) for the amount noted above.

     

    If you leased the "least expensive" BMW 3 series(I know this is a VW forum -- relax for a moment) with no money down, first mo payment up front (and you may qualify for no sec dep) and a term of 42 months, based on what I have seen in the paper, you would have $0 service or repair costs, probably 1 set of replacement tires, insurance, gas and license plates.

     

    Around month 36 - 39 BMW would attempt to get you to lease another one by forgiving the remaining payments or some other incentive.

     

    My point is, you must be paying cash up front and planning to keep the car until it is worthless and hoping that it will not need any $$$$ repairs.

     

    I couldn't afford to purchase the car for $15,000 -- but I could afford to lease a brand new one every 36 to 42 months.

     

    It costs too much money -- and uncertainty makes it cost even more -- to acquire the used one.

     

    And, if your approach on the used one is to finance it -- well the costs are even more in favor of leasing the new one.

     

    See how much BRAND NEW Passat, for instance, you can lease for that kind of money.

     

    Wouldn't you really rather have a new car? For economy, safety, performance AND fun?
  • blamb2blamb2 Member Posts: 3
    I had a "coolant migration" problem diagnosed by the dealership. The symptoms were that the electrical system was behaving intermittently problematic and irregularly (i.e. ARS light coming on - then going out; EPC light coming on - then going out; engine light coming on - then going out) I took the car to the dealership immediately. I was told that it was "coolant migration" and that this is a design defect and VW is paying for the repair. I was further told that the coolant had come into contact with the temperture sensor contacts and traveled the wires to destroy the entire electrical system.

     

    The entire wiring harness had to be replaced. (2 weeks repair.) Upon replacing the wiring harness and before returning the car to me, i was informed that the catalytic converter melted on the test drive, that the O2 sensors are burned out, and that all the sparkplugs were toast. This sounds very bad to me. They explained that upon testing the car, the computer was sending a 80% fuel /20% air mixture to to the engine, causing engine to flood and sending a ton of fuel to the catalytic converter. Thus explaining the spark plug and catalytic converter problem. The repair for this is to replace the sparks, the catalytic converter and the O2 sensors. In the process they broke and air return nipple which is now being replaced.

     

    1. Is this believeable? Does the explanation fit the problem?

    2. What is going on here?

    3. How can i be sure that they haven't destroyed my car? I am worried that the engine, valves, pistons, cylinders, etc. have all been compromised.

     

    HELP.
  • warthogwarthog Member Posts: 216
    My wife's '02 Passat had a bracket for a cell phone installed. She no longer uses that phone and the bracket is just in the way. Removing the brackket requires pulling out the center stack panel (radio, HVAC, etc). Does anyone know how this panel comes out?
  • robr2robr2 Member Posts: 8,805
    Go to:

     

    http://www.panavise.com/nf/comm/indash/idbrandsearch.html

     

    Pick the vehicle and look at the pictures. They provide instructions on installing.

     

    Goo Luck.
  • dl7265dl7265 Member Posts: 1,381
    To chime in on Marks post. in 1999 3er,lease proposal was about 500 per month,36 months 10kmiles per year a year.

     

    Instead purchase price 30k, sold after 40 months for 21k, set tires $500.So i spent $9500 for 40 months for effective $237.50 per month.Not including the mileage overage i would have owed.

     

    Two factors to consider, i did not have a small business that i could have deducted any lease payments and the Strong resale value of the E46.

     

    DL
  • markcincinnatimarkcincinnati Member Posts: 5,343
    I suspect the 10,000 mile provision is below average miles driven by some 2500 to 6500. This does effect the price dearly.

     

    To make much of the lease versus buy things work, it is assumed CASH up front -- the days of low low interest rates are coming to an end.

     

    If, however, you can get a low interest rate, less than 2% for instance, well, then the purchase versus lease gets more interesting.

     

    Recently when attempting to consider which way to go, we priced both lease and buy a 2004 and a 2005 Audi S4. No matter how we looked at it, the ONLY way to "win" with the 2004 was 100% cash up front, and even then, that assumes there would be not better use for those funds.

     

    It is true that having a business write off does make the lease ALMOST a no brainer.

     

    Other salient points have to do with your suggestion that he was looking to BUY a brand new versus 3 year old vehicle that already had 48,000 miles on it.

     

    My attempt, and I said attempt, was to approximate the costs based on a starting point of 3 years old and 48,000 miles already on the clock.

     

    Most of us would not be so fortunate to buy at $30K and sell almost 3.5 years later for a 70% residual.

     

    Our poster was, in my estimation, starting NOT with a leg up, but with a leg down on the process considering that it was possible to have a car with over 100,000 miles on it when it was "paid for" -- not to mention the almost certain 4 figures worth of repairs it would require in that time frame (not to mention maintenance costs).

     

    For the sake of argument I am considering the timing belt a repair, although I realize this rather expensive maint item is technically considered maintenance.
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