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Car Buying Advice - Are there any cons on buying 2017 Audi Q7 vs. leasing?

garig25garig25 Posts: 1
edited July 2017 in Audi
I am planning to buy 2017 Audi Q7 Premium Plus 2.0 with driver assistance, ventilation package . MSRP $59,990 and getting it for $55,770 (including taxes).

Want to know if there are any cons to buying the car vs leasing? I was planning to lease earlier but given a high money factor quoted to me by Audi (0.0028), I am inclining to buy the car.

Thanks in advance!

Comments

  • ClintClint Posts: 10
    I have leased for years. In the end there is not really much difference.

    Whether a lease or a purchase is best depends on a number of things.

    Such as is the lease subvented by the OEM? For example, is the residual value raised or is the money factor reduced.

    A lease is good if you want a new vehicle every few years or you do not want repair costs.

    A lease will almost always be more costly in the long run. At a minimum, with a lease you will have an acquisition fee of around $900. Not something you have with a purchase.

    Also after the lease period ends you will need to replace the vehicle or buy the vehicle from the leasing company. This will usually result in additional costs and effort.

    In the short term, depending on the residual value and money factor, a lease will usually be less costly.

    A major attraction of a lease is the ability to simply return the vehicle at the end of the lease term.

    Or you can purchase the vehicle for the value set in the lease, residual value plus any remaining lease payments. Sometimes less depending on the leasing company. However, OEMs do not generally sell for less than the amount specified in the lease agreement.

    Or you can trade or sell the leased vehicle exactly as you would with a purchased vehicle. This is a good way to minimize the impact of any damage or over mileage during the leased period. I have never returned a leased vehicle. I always trade the leased vehicle for a new purchase or a new lease.

    To calculate a lease payment,

    Take the capitalized cost less the residual value and divide by the number of months in the lease.
    Add the capitalized cost plus the residual value and multiply by the money factor.
    The two amounts result in the monthly lease payment.

    Some comments addressing the issues raised by Thailand.

    At any time during the lease or at lease end, you can purchase the vehicle for the amount specified in the lease agreement. That would be the residual value plus remaining lease payments.

    While the mileage is limited, you can usually purchase additional miles at any time. For BMW at 20 cents a mile.

    Wear and tear is always your responsibility, whether you lease or purchase. Most OEMs allow for some damage if you lease another vehicle from them.

    As noted above, over mileage or wear issues can be somewhat resolved if you trade or sell the leased vehicle.

    Early termination costs will be the remaining lease payments and, sometimes, a small lease end fee.


  • May I know the tax rate in your state? It is really a attractive deal for purchase.
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