Hello Hackrs,
I’m currently situated in a lease on a 2019 Audi RS5. I just signed the deal yesterday. I know I know… I should be checking with you guys before I sign anything… But, I’m checking now because I have the option to turn this lease into a financed purchase. I’m trying to figure out the smartest financial decision between the 2. I know the lease I signed isn’t the greatest that’s why I inquired about switching to a purchase. Its common knowledge RS cars just don’t lease well but its what I wanted and I was willing to sacrifice a bit to get it. I prefer leasing because I typically don’t keep cars for longer than 3 years or so.
I’ll attach a photo of the current lease deal but some key pieces of information… I brought in $7200 of negative equity into this deal. 4k down. The original MSRP was $91,500 and Gross Cap Cost was $82,100. Money factor .0020375 (Can’t remember exactly but around there)
1523.61 a month at 42/7,500
Switching to finance would look like this…
Same 4k down
Gross cap cost $82,100
60 mo at 4.49% $1730 monthly
72mo at 4.99% $1495 monthly
Honestly don’t think I could swing 1700 a month so leaning more towards 72 months.
I already know I’m going to get butchered in the comments but I’m already doing that myself. So just any advice and help would be appreciated.
I don’t understand the question. If you already leased the car then your financed sum would be based on the buyout quote from Audi Financial. That would be the totality of your remaining payments and residual value. It would make 0 sense to finance this car new plus negative equity and given your 42 month term plus the openness to a 72 month loan, you seem to be chasing a monthly payment and not seeing the big picture.
How did that compare with the Edmunds info you spent 5 minutes procuring before pulling the trigger on a depreciating asset with a price of nearly $90,000?
Here’s a question… WHO is giving you the option of turning this into a purchase deal now? A third party buyout? Or did you call the dealer with cold feet and they offered to switch it to a purchase deal?
They stated this value or your tried to back calculate it? No dealer is going to provide a 7 digit long MF number unless there was some major confusion somewhere.
If it were me I’d talk to them about stopping payment on my check and returning the car, but I’m not really sure what your options are at this point. At that lease payment you’re almost paying for the car in its entirety as is after three years. And do you really want to be on the hook for owning that? Depreciation, maintenance, repairs, etc…
Are you sure that the dealer wasn’t giving you purchase aprs? I’ve seen plenty of times when someone saw a dealer doing a certain purchase apr and just assume that applied to leases. (not that 4.872% makes sense for that either)
A dealer certainly isn’t going to give you MF as a 4 sig fig apr number.
