Hey Everyone- This is a continuation from my last Signed: 2022 Lamborghini Urus post in Dec 2022…
I traded in my base Urus that I leased in December of 2022 from Lamborghini Las Vegas for a 2024 Urus S
MSRP: $254,132
Sale Price: $233,882
Payment: $3,709
Term: 39 months
Mileage: 7,500 miles/year
Residual: $228,719
Total DAS: $0
Trade in: $220,000
Additional work done afterwards include:
Starlight Headliner
Full Body Xpel PPF
Ceramic Pro 4 layers exterior with 2 layers light
Ceramic Pro full interior along with rims
Overall I am happy considering the new Urus S is less expensive than my base.
My previous payment was $3,795 and my new payment is $3,709. I previously had 2,500 miles/year and was 10,000 miles over. Now I have 7,500 miles/year.
This 3 year Urus journey affirms what I shared with everyone a couple years back. Mileage won’t matter as long as you know how to hack a lease and employ one of the 4 strategies I mentioned:
private party sell the car
trade out of it (what I did)
buy it out for residual at lease end
have someone assume the lease
In all cases your overage in mileage won’t be charged against you.
I’m not taking away from your ability to unload the old one for 220k and the discount on the 2024. I’m just having a hard time following how leasing is a lower cost of ownership vs if you had purchased the 2022.
I agree. Seems like financing would be better off – 84 month loan at 8% interest with $0 due (lol) puts the monthly at $3600 with a balance of 179k after year 2. Seems like that puts the total TCO lower than leasing and paying the same amount but all in interest
It was HIGH- I rolled over roughly $22K of negative equity. Thankfully the residual on the S was higher and offset things a bit for me. So I overpaid by $20K on the '22 and was basically that much in the whole. Not a big surprise- it was expected but the dealer did make things right giving me a huge discount on the new one. 10% is nothing to sneeze at when you get to this price point.
The 2022 was nowhere near the payoff of $245K. I rolled over $22K in to a $25K discounted vehicle. Now mind you, the '24 is newer, faster, and has a better residual. In 36 months, it will be easier to assess if residual comes close to market rate. On the 2022, I was guaranteed to be upside down and it would have been a larger loss to buy.
I explain a lot about the upside of leasing to your benefit on my TikTok channel: @thecarhacker.
Overall, i don’t believe I will keep this unless the residual is much less than market rate.
It was a hedged bet this time. There was a part of me that thought I might take the car to lease maturity and if I do that without wanting to go exotic again I wanted to make sure that my habits with align with the contract if I decide not to sell it or trade it in.
Obviously my previous strategy would be fine but when you go 10,000 miles over at $1.50/mile it’s still a bit stressful.
Increasing my mileage was simply a peace in mind. Just like insurance.
Even if I didn’t go over on mileage the car significantly depreciated based off inventory on market. Mileage wasn’t a factor here. Me paying $20K over sticker on a car that depreciated harder than the residual was the issue.
Doesn’t make sense to ever finance brand new EVER. Always lease first. If the residual meets or exceeds market rate at maturity then go ahead and finance the remaining amount. Better to buy your own used car at market rate than finance all of it with tax, title, license on Day 1 and never being able to predict that value. There’s soft and hard dollars to calculate. Financing it would guarantee I’m upside down for a long time.
Never finance or pay cash for brand new- Always lease. Hedge your bets in a guaranteed to be depreciating asset
Overall I think many people fail to account for the significant rate of depreciation over the first 5 years and the contrast it will have against the residual value of the car. If you can control that for a 3-4 year period during a lease and walk away if the residual doesn’t match market rate, isn’t that better? If it does, then congrats you bought your own used car for less than you would have financing it straight up. Net Present Value of a Dollar exceeds the Future Value (this is the retort to, "well you’re making payments for a longer period of time- so it’s not better). Your lease payment is always less in the beginning as you’re only paying the depreciation. That’s what a lease is- so hold the manufacturers accountable and see if the residual aligns with market conditions. Just my two cents.
He didn’t do the math justice. Usually I’d advocate to lease.
84 months @ 8% you’re at a $139k balance after 39 months of ~$3660 of payments. TCO would be lower if you floated a higher payment for less months/lower rate. @Bumboola correct me if im wrong here.
Pretty likely that you’d have positive equity considering 2021s are trading around $182k wholesale with ~22.5k Miles.
In theory, yes, you could be underwater, get into an accident and deal with diminished value, etc, but it feels like the math points pretty heavily to finance route.
Going $20K over sticker and then financing it didn’t make sense. I was guaranteed to be underwater. Maybe if I paid sticker but I’m not seeing the math on financing it vs leasing it and walking away. I would have paid full tax on that car on Day 1 too vs when leasing I assume tax on monthly payment.
I’m open to being wrong on the math but I don’t see it
Yes the first one I paid $20K over sticker (it absolutely sucked) facts are facts. The 2nd one I got $25K off at 10% discount. It’s basically all a wash at this point. You only told the truth. Never mad about that!
