Own vs lease
07-12-2012, 10:01 PM
#1
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Own vs lease
I was interested to know how many on here own their A7 as opposed to leasing. I go back and forth between the two constantly. For me, with my new job I may have a tax incentive to lease but I lease a lesser car now and the idea of leasing bothers me for some reason. What was the deciding factor for you?
07-12-2012, 11:52 PM
#2
AudiWorld Member
Lease.... pointless to own... dont get brainwashed by deceptive capitalist kung fu (I like to consider myself a heroic capitalist).
I want new tech and wheels every three years... with the rapid pace of innovation we will start to see incar.... just imagine owning todays iPad in 2015.
Apple, Goog and MSFT are just getting warmed up with incar... it's about to explode... and we will not see backward compatibility...AND Audi's 2014 lineup will be awesome.. with a high probability on the A9.
Plus I run it through my Biz... it's an easy write-off.
Tell me what do you really own? Step out of your delusion and you will see that you barely own your life.
I want new tech and wheels every three years... with the rapid pace of innovation we will start to see incar.... just imagine owning todays iPad in 2015.
Apple, Goog and MSFT are just getting warmed up with incar... it's about to explode... and we will not see backward compatibility...AND Audi's 2014 lineup will be awesome.. with a high probability on the A9.
Plus I run it through my Biz... it's an easy write-off.
Tell me what do you really own? Step out of your delusion and you will see that you barely own your life.
07-13-2012, 02:31 AM
#3
AudiWorld Member
Wise assessment, Prime.
I chose to lease… This is my 1st time doing so – I’ve bought 7 or 8 cars in the 18yrs I’ve been driving, thus I figured I’ve give leasing a shot, and I’m glad I did w/ this particular A7. It’s having a lot of minor/nit-noid issues (issues that Audi can’t seem to figure out???). I’d be more than a little pissed if I had decided to buy a $75K vehicle that can’t be “fixed”. Also, I’m getting a little more peace of mind in knowing that something better is only 2yrs away; which speaks to my insatiable nature as it pertains to life.
I chose to lease… This is my 1st time doing so – I’ve bought 7 or 8 cars in the 18yrs I’ve been driving, thus I figured I’ve give leasing a shot, and I’m glad I did w/ this particular A7. It’s having a lot of minor/nit-noid issues (issues that Audi can’t seem to figure out???). I’d be more than a little pissed if I had decided to buy a $75K vehicle that can’t be “fixed”. Also, I’m getting a little more peace of mind in knowing that something better is only 2yrs away; which speaks to my insatiable nature as it pertains to life.
07-14-2012, 12:51 AM
#6
Well it depends leasing is paying for the "estimated" depreciation the car will have in 2-3 yrs, that is so steep the first year and estimated about 50% after 3 yrs, so if you are getting a brand new car the best you can do is lease it and forget about the car after the lease is over, BUT why dont you try to get a 2012 corporate car for 10% less and it is still a really good car with 3 yrs warranty left and you sell it TO A PRIVATE PARTY in a couple of years,trust me you will spend less out of pocket than a lease.
07-14-2012, 05:10 AM
#7
AudiWorld Super User
With over 30 cars purchased and leased over my lifetime I would say there is no one size fits all for determining whether a lease or purchase is best. There are many factors to consider but in the end it comes down to the cost of money and the emotional considerations.
On the money side, a spreadsheet or one of the many online lease vs. purchase calculators can illustrate which will make the most sense for you based on lease money factor vs. interest rate (car loan or loss of savings interest), how long you plan to keep the car, mileage driven, potential equity and lease residual value vs. actual value at lease end and business use (depreciation deduction vs. lease deduction).
Finally, there is the non-financial, emotional side of ownership vs lease that can't be measured in dollars. The potential hassle of disposing of a purchased vehicle vs. walking away at lease end or monthly payments vs. just writing a check (for those who can afford to do so). Then there's the over-mileage and potential end of lease condition penalty concerns to deal with. Do you want to be an owner or a renter? Each person must answer for themselves.
At the end of the day, whether leasing or buying, a new car is a lousy financial investment - you would do far better to put your money under the mattress and buy a junker to get where you have to go. Unless you're buying a rare, desirable and collectible automobile, depreciation will take its toll no matter how you pay for it - it's a fact of life. All that's left after the financial gymnastics is the emotional and hopeful enjoyment of your depreciating asset. Lease or buy? No one answer is correct for everyone.
With the very low savings interest rates these days and my plan to keep the car for 8 years or so, this time I elected to pay cash out of savings. With the nominal loss of interest (at least right now), not having to worry about mileage, any nitpicking by an appraiser at lease end not dealing with monthly payments is very appealing to me as well. I also tend to like to own things rather than renting someone else's stuff. I consider myself an informed money manager but I am emotion directed as well. One big hit now and no monthly cost of money over future months. Mental semantics, to be sure but that's just me. Might not be you though.
On the money side, a spreadsheet or one of the many online lease vs. purchase calculators can illustrate which will make the most sense for you based on lease money factor vs. interest rate (car loan or loss of savings interest), how long you plan to keep the car, mileage driven, potential equity and lease residual value vs. actual value at lease end and business use (depreciation deduction vs. lease deduction).
Finally, there is the non-financial, emotional side of ownership vs lease that can't be measured in dollars. The potential hassle of disposing of a purchased vehicle vs. walking away at lease end or monthly payments vs. just writing a check (for those who can afford to do so). Then there's the over-mileage and potential end of lease condition penalty concerns to deal with. Do you want to be an owner or a renter? Each person must answer for themselves.
At the end of the day, whether leasing or buying, a new car is a lousy financial investment - you would do far better to put your money under the mattress and buy a junker to get where you have to go. Unless you're buying a rare, desirable and collectible automobile, depreciation will take its toll no matter how you pay for it - it's a fact of life. All that's left after the financial gymnastics is the emotional and hopeful enjoyment of your depreciating asset. Lease or buy? No one answer is correct for everyone.
With the very low savings interest rates these days and my plan to keep the car for 8 years or so, this time I elected to pay cash out of savings. With the nominal loss of interest (at least right now), not having to worry about mileage, any nitpicking by an appraiser at lease end not dealing with monthly payments is very appealing to me as well. I also tend to like to own things rather than renting someone else's stuff. I consider myself an informed money manager but I am emotion directed as well. One big hit now and no monthly cost of money over future months. Mental semantics, to be sure but that's just me. Might not be you though.
Last edited by snagitseven; 07-14-2012 at 05:13 AM.
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07-14-2012, 08:35 AM
#8
AudiWorld Senior Member
Very well said.
With over 30 cars purchased and leased over my lifetime I would say there is no one size fits all for determining whether a lease or purchase is best. There are many factors to consider but in the end it comes down to the cost of money and the emotional considerations.
On the money side, a spreadsheet or one of the many online lease vs. purchase calculators can illustrate which will make the most sense for you based on lease money factor vs. interest rate (car loan or loss of savings interest), how long you plan to keep the car, mileage driven, potential equity and lease residual value vs. actual value at lease end and business use (depreciation deduction vs. lease deduction).
Finally, there is the non-financial, emotional side of ownership vs lease that can't be measured in dollars. The potential hassle of disposing of a purchased vehicle vs. walking away at lease end or monthly payments vs. just writing a check (for those who can afford to do so). Then there's the over-mileage and potential end of lease condition penalty concerns to deal with. Do you want to be an owner or a renter? Each person must answer for themselves.
At the end of the day, whether leasing or buying, a new car is a lousy financial investment - you would do far better to put your money under the mattress and buy a junker to get where you have to go. Unless you're buying a rare, desirable and collectible automobile, depreciation will take its toll no matter how you pay for it - it's a fact of life. All that's left after the financial gymnastics is the emotional and hopeful enjoyment of your depreciating asset. Lease or buy? No one answer is correct for everyone.
With the very low savings interest rates these days and my plan to keep the car for 8 years or so, this time I elected to pay cash out of savings. With the nominal loss of interest (at least right now), not having to worry about mileage, any nitpicking by an appraiser at lease end not dealing with monthly payments is very appealing to me as well. I also tend to like to own things rather than renting someone else's stuff. I consider myself an informed money manager but I am emotion directed as well. One big hit now and no monthly cost of money over future months. Mental semantics, to be sure but that's just me. Might not be you though.
On the money side, a spreadsheet or one of the many online lease vs. purchase calculators can illustrate which will make the most sense for you based on lease money factor vs. interest rate (car loan or loss of savings interest), how long you plan to keep the car, mileage driven, potential equity and lease residual value vs. actual value at lease end and business use (depreciation deduction vs. lease deduction).
Finally, there is the non-financial, emotional side of ownership vs lease that can't be measured in dollars. The potential hassle of disposing of a purchased vehicle vs. walking away at lease end or monthly payments vs. just writing a check (for those who can afford to do so). Then there's the over-mileage and potential end of lease condition penalty concerns to deal with. Do you want to be an owner or a renter? Each person must answer for themselves.
At the end of the day, whether leasing or buying, a new car is a lousy financial investment - you would do far better to put your money under the mattress and buy a junker to get where you have to go. Unless you're buying a rare, desirable and collectible automobile, depreciation will take its toll no matter how you pay for it - it's a fact of life. All that's left after the financial gymnastics is the emotional and hopeful enjoyment of your depreciating asset. Lease or buy? No one answer is correct for everyone.
With the very low savings interest rates these days and my plan to keep the car for 8 years or so, this time I elected to pay cash out of savings. With the nominal loss of interest (at least right now), not having to worry about mileage, any nitpicking by an appraiser at lease end not dealing with monthly payments is very appealing to me as well. I also tend to like to own things rather than renting someone else's stuff. I consider myself an informed money manager but I am emotion directed as well. One big hit now and no monthly cost of money over future months. Mental semantics, to be sure but that's just me. Might not be you though.
07-14-2012, 11:25 AM
#9
Sometimes I want to walk from a car in less than three years, getting out of a lease early can suck.
I've done the calculations numerous times and purchasing always makes more sense to me than a lease. The voodoo dealerships do with leasing is disturbing anyway. In either case, negotiate the best final "purchase" price you can, then go from there. Spending over $40k on a vehicle I won't own after three years just leaves a bad taste in my mouth. Why do you think leases exist in the first place? Because they're a better deal for the dealer/manufacturer.
I say, get the best deal you can, then buy your A7, leasing is a suckers game. I also write off my purchases through my S-Corp, tax write off's are not just for leases.
Good luck, you'll love the A7!
I've done the calculations numerous times and purchasing always makes more sense to me than a lease. The voodoo dealerships do with leasing is disturbing anyway. In either case, negotiate the best final "purchase" price you can, then go from there. Spending over $40k on a vehicle I won't own after three years just leaves a bad taste in my mouth. Why do you think leases exist in the first place? Because they're a better deal for the dealer/manufacturer.
I say, get the best deal you can, then buy your A7, leasing is a suckers game. I also write off my purchases through my S-Corp, tax write off's are not just for leases.
Good luck, you'll love the A7!
07-14-2012, 12:40 PM
#10
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Sometimes I want to walk from a car in less than three years, getting out of a lease early can suck.
I've done the calculations numerous times and purchasing always makes more sense to me than a lease. The voodoo dealerships do with leasing is disturbing anyway. In either case, negotiate the best final "purchase" price you can, then go from there. Spending over $40k on a vehicle I won't own after three years just leaves a bad taste in my mouth. Why do you think leases exist in the first place? Because they're a better deal for the dealer/manufacturer.
I say, get the best deal you can, then buy your A7, leasing is a suckers game. I also write off my purchases through my S-Corp, tax write off's are not just for leases.
Good luck, you'll love the A7!
I've done the calculations numerous times and purchasing always makes more sense to me than a lease. The voodoo dealerships do with leasing is disturbing anyway. In either case, negotiate the best final "purchase" price you can, then go from there. Spending over $40k on a vehicle I won't own after three years just leaves a bad taste in my mouth. Why do you think leases exist in the first place? Because they're a better deal for the dealer/manufacturer.
I say, get the best deal you can, then buy your A7, leasing is a suckers game. I also write off my purchases through my S-Corp, tax write off's are not just for leases.
Good luck, you'll love the A7!