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Lease End Decision

atzflackatzflack Posts: 2
edited September 16 in Audi
Hi, looking for help ensuring I've got all of my options laid out correctly and my line of thinking correct.

I have a 2018 Q5 lease coming due Oct. 7 for 7500/yr mileage, along with lease-end protection of 10k excess wear and tear & 500 extra miles.

We've gone over the miles by ~1500 or so.
We also have some wear and tear outlined as:
  • backed into the corner of a cement pole in a parking garage (lightly)-- there's vertical rear bumper damage. I don't know how much this will cost to replace
  • small rip in the upholstery on the roof from the corner of some wood scratching it (pushed up against it as the trunk closed & pushed it forward
  • small rip in the right side door upholstery [same as above]
The residual value is for 31k or so, which is higher than the market price for a better car.

Am I right in thinking the following:
  • If the repairs for the damages I'd be responsible for (after the lease-end protection is applied) is greater than the difference between the residual value and the market price of the car, I should buy the car
  • If the repairs are not greater than the difference, then I should pay the excess miles fee and return the car
Is there a path to negotiating for a lower cost than the residual if I do want to buy it ? Or to lease/buy a newer version but not be responsible for the excess wear and tear?

Thanks in advance- first time leasing a car and not clear on what to do!

Comments

  • kyfdxkyfdx Posts: 163,847
    atzflack said:

    Hi, looking for help ensuring I've got all of my options laid out correctly and my line of thinking correct.

    I have a 2018 Q5 lease coming due Oct. 7 for 7500/yr mileage, along with lease-end protection of 10k excess wear and tear & 500 extra miles.

    We've gone over the miles by ~1500 or so.
    We also have some wear and tear outlined as:

    • backed into the corner of a cement pole in a parking garage (lightly)-- there's vertical rear bumper damage. I don't know how much this will cost to replace
    • small rip in the upholstery on the roof from the corner of some wood scratching it (pushed up against it as the trunk closed & pushed it forward
    • small rip in the right side door upholstery [same as above]
    The residual value is for 31k or so, which is higher than the market price for a better car.

    Am I right in thinking the following:
    • If the repairs for the damages I'd be responsible for (after the lease-end protection is applied) is greater than the difference between the residual value and the market price of the car, I should buy the car
    • If the repairs are not greater than the difference, then I should pay the excess miles fee and return the car
    Is there a path to negotiating for a lower cost than the residual if I do want to buy it ? Or to lease/buy a newer version but not be responsible for the excess wear and tear?

    Thanks in advance- first time leasing a car and not clear on what to do!
    Don't buy the car, unless you want to keep driving it. Just pay the damage and walk away.

    Have you scheduled your lease-end inspection? No point in making decisions without the facts.

    No, you can't negotiate lease end charges or the buyout amount.

    Did you get a good deal? Be sure to come back and share!

    Edmunds Moderator

  • Thanks!
    The inspection is for next Thursday - I wasn't sure if they'd be able to give me a monetary estimate of the damages at that time.

    Next question - if I do want to keep driving it, how does that work between having a loan through AFS or elsewhere? If I were to get a pre-approved loan somewhere else, should it be for the residual amount?
  • kyfdxkyfdx Posts: 163,847
    atzflack said:

    Thanks!
    The inspection is for next Thursday - I wasn't sure if they'd be able to give me a monetary estimate of the damages at that time.

    Next question - if I do want to keep driving it, how does that work between having a loan through AFS or elsewhere? If I were to get a pre-approved loan somewhere else, should it be for the residual amount?

    The last three lease end inspections that I've had, the inspector prints the report off on a portable printer, with the lease end charges itemized.

    Generally, most captive lenders will not offer you financing for buying out their vehicle. You can ask, but if that's the way you want to go, I'd have financing lined up.

    Did you get a good deal? Be sure to come back and share!

    Edmunds Moderator

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