Leasing a TT
 

Please help me out here. I have a question about leasing, if I put down more
than the $4000 for down payment and over the course of the 36 month lease,
would I actually save a few hundred dollars, am I correct for assuming this?
Also I do not plan to buy the car at the end, so residual value is not a
concern.

Thanks

Re: Leasing a TT
 

This isn't an answer, it's an additional question.

Does anyone know how a (standard Audi) lease functions, and what the
difference is between that and buying outright? I'm now officially in the
market for a TT 3.2, maybe by March. Wife said okay.


--
Charles Fox
cafox513@gte.net

"spongebob squarepants" <nowhere@msn.com> wrote in message
news:m4phb.64957$sd5.9361272@twister.columbus.rr.c om...
> Please help me out here. I have a question about leasing, if I put down
more
> than the $4000 for down payment and over the course of the 36 month lease,
> would I actually save a few hundred dollars, am I correct for assuming
this?
> Also I do not plan to buy the car at the end, so residual value is not a
> concern.
>
> Thanks
>
>

Re: Leasing a TT
 

The purpose of lease is to minimize the out-of-pocket dollar (both
down and monthly). If you plan to put $4000 down, then you maybe
against the "rule." You may save a few bucks by putting more down
payment up front. But if you have so much money to spend, why not
consider buying the car since interest rate is so low now?

Here is how a lease works:

Car Price - Down Payment = Based Price
Based Price - Residual Value = Leased Cost
Leased Cost + Rent Charge = Total out of pocket
Total out of pocket / Terms = Monthly Payment

Couple things are negotiable:
1. Car price
2. Residual value (choose the lowest mileage option can increase this
value)
3. Rent charge (usually based on the money factor. If you put more
down, you maybe able to lower this a bit)

This is all based on my experience. I am not an expert in auto
financing. Just a FYI.

On Tue, 21 Oct 2003 03:14:00 GMT, "Charles Fox" <cafox513@gte.net>
wrote:

>This isn't an answer, it's an additional question.
>
>Does anyone know how a (standard Audi) lease functions, and what the
>difference is between that and buying outright? I'm now officially in the
>market for a TT 3.2, maybe by March. Wife said okay.


"spongebob squarepants" <nowhere@msn.com> wrote in message
news:m4phb.64957$sd5.9361272@twister.columbus.rr.c om...
> Please help me out here. I have a question about leasing, if I put down
more
> than the $4000 for down payment and over the course of the 36 month lease,
> would I actually save a few hundred dollars, am I correct for assuming
this?
> Also I do not plan to buy the car at the end, so residual value is not a
> concern.
>
> Thanks
>
>



----== Posted via Newsfeed.Com - Unlimited-Uncensored-Secure Usenet News==----
http://www.newsfeed.com The #1 Newsgroup Service in the World! >100,000 Newsgroups
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Re: Leasing a TT
 

"Charles Fox" <cafox513@gte.net> skrev i melding
news:Yv1lb.21309$Ee6.6125@nwrddc01.gnilink.net...
Wife said okay.


Well then, just go ahead!!

Re: Leasing a TT
 

Gloriously clear explanation, Who . . . Thanks a ton. It gives me a way to
work out a couple of scenarios. And explain them to my dear bride.

Wish me luck!

"WhoAmI" <no@email.com> wrote in message
news:m1l9pvsihsf1cktnf82ig907ep56j4soro@4ax.com...
> The purpose of lease is to minimize the out-of-pocket dollar (both
> down and monthly). If you plan to put $4000 down, then you maybe
> against the "rule." You may save a few bucks by putting more down
> payment up front. But if you have so much money to spend, why not
> consider buying the car since interest rate is so low now?
>
> Here is how a lease works:
>
> Car Price - Down Payment = Based Price
> Based Price - Residual Value = Leased Cost
> Leased Cost + Rent Charge = Total out of pocket
> Total out of pocket / Terms = Monthly Payment
>
> Couple things are negotiable:
> 1. Car price
> 2. Residual value (choose the lowest mileage option can increase this
> value)
> 3. Rent charge (usually based on the money factor. If you put more
> down, you maybe able to lower this a bit)
>
> This is all based on my experience. I am not an expert in auto
> financing. Just a FYI.
>
> On Tue, 21 Oct 2003 03:14:00 GMT, "Charles Fox" <cafox513@gte.net>
> wrote:
>
> >This isn't an answer, it's an additional question.
> >
> >Does anyone know how a (standard Audi) lease functions, and what the
> >difference is between that and buying outright? I'm now officially in the
> >market for a TT 3.2, maybe by March. Wife said okay.
>
>
> "spongebob squarepants" <nowhere@msn.com> wrote in message
> news:m4phb.64957$sd5.9361272@twister.columbus.rr.c om...
> > Please help me out here. I have a question about leasing, if I put down
> more
> > than the $4000 for down payment and over the course of the 36 month
lease,
> > would I actually save a few hundred dollars, am I correct for assuming
> this?
> > Also I do not plan to buy the car at the end, so residual value is not a
> > concern.
> >
> > Thanks
> >
> >
>
>
>
> ----== Posted via Newsfeed.Com - Unlimited-Uncensored-Secure Usenet
News==----
> http://www.newsfeed.com The #1 Newsgroup Service in the World! >100,000
Newsgroups
> ---= 19 East/West-Coast Specialized Servers - Total Privacy via Encryption
=---

Re: Leasing a TT
 

"Charles Fox" <cafox513@gte.net> skrev i melding
news:inblb.23227$Ee6.12459@nwrddc01.gnilink.net...
It gives me a way to work out a couple of scenarios. And explain them to my
dear bride.
Wish me luck!

But will the little dear understand any of them anyway?? Oh
well..................

Re: Leasing a TT
 

On Tue, 21 Oct 2003 03:14:00 GMT, "Charles Fox" <cafox513@gte.net>
wrote:

>difference is between that and buying outright? I'm now officially in the
>market for a TT 3.2, maybe by March. Wife said okay.

Leases make sense for 3 type of folks:

1) Get to drive a car that you could not afford the payments on to
purchase. (You really should buy something you can afford if you are
in this group)

2) You want the newest car at all times (for whatever reason) and
wouldn't keep your car past 3 years if you bought it anyway.

3) You are writing it off as a business expense or other tax reason
(though this usually coolapses down to reason 2 if you think about it)

With a lease you are paying to drive the car, at the end of the lease
you own nothing (and owe nothing).

You always want to minimize your out-of pocket, as you are better off
paying that money over the term of the lease (cost of money is a big
factor in leasing).

I generally have 1 car leased and one purchased at any given time. The
leased car is always done with near 0 out of pocket, no money down.
The purchased car is done with the biggest down payment I can afford
and the shortest loan period I can afford. The purchased car is kept
for 10+ years, the leased car for 3.

Factoring just the raw costs (lease payments vs. loan payments,
depreciatioin vs owning nothing, etc) and not including cost of money,
my leased car is the same cost as purchasing the same car and
re-selling after 3 years. But, I do not have to re-sell it and I get
sales tax breaks when I trade for another lease. After including those
factors (and even better with cost of money) I come out well ahead on
the lease: GIVEN THAT I DO NOT PLAN ON KEEPING IT PAST 3YRS ANYWAY.
The longer you keep the car the better a purchase looks.

Also, if you drive more than about 18kmi/yr the lease can start
looking unattractive as well (too low a residual value means too high
a lease payment).

Leasing a car at the begining of a new body style helps, as you get a
higher residual value.

Scott

Re: Leasing a TT
 

"Scott" <spam784@spam.spam> wrote in message
news:4aeepvs20ci7j89a40b71rpg33uad96hm9@4ax.com...
> On Tue, 21 Oct 2003 03:14:00 GMT, "Charles Fox" <cafox513@gte.net>
> wrote:
>
> >difference is between that and buying outright? I'm now officially in the
> >market for a TT 3.2, maybe by March. Wife said okay.
>
> Leases make sense for 3 type of folks:
>
> 1) Get to drive a car that you could not afford the payments on to
> purchase. (You really should buy something you can afford if you are
> in this group)
>
> 2) You want the newest car at all times (for whatever reason) and
> wouldn't keep your car past 3 years if you bought it anyway.
>
> 3) You are writing it off as a business expense or other tax reason
> (though this usually coolapses down to reason 2 if you think about it)
>
> With a lease you are paying to drive the car, at the end of the lease
> you own nothing (and owe nothing).
>
> You always want to minimize your out-of pocket, as you are better off
> paying that money over the term of the lease (cost of money is a big
> factor in leasing).
>
> I generally have 1 car leased and one purchased at any given time. The
> leased car is always done with near 0 out of pocket, no money down.
> The purchased car is done with the biggest down payment I can afford
> and the shortest loan period I can afford. The purchased car is kept
> for 10+ years, the leased car for 3.
>
> Factoring just the raw costs (lease payments vs. loan payments,
> depreciatioin vs owning nothing, etc) and not including cost of money,
> my leased car is the same cost as purchasing the same car and
> re-selling after 3 years. But, I do not have to re-sell it and I get
> sales tax breaks when I trade for another lease. After including those
> factors (and even better with cost of money) I come out well ahead on
> the lease: GIVEN THAT I DO NOT PLAN ON KEEPING IT PAST 3YRS ANYWAY.
> The longer you keep the car the better a purchase looks.
>
> Also, if you drive more than about 18kmi/yr the lease can start
> looking unattractive as well (too low a residual value means too high
> a lease payment).
>
> Leasing a car at the begining of a new body style helps, as you get a
> higher residual value.
>
> Scott

Some further comments (UK perspective):

1. Different finance companies can have different views on a particular
car's residual value.

2. Excess mileage charges can vary.

3. Amount of remedial work at the end of the lease can vary.

4. Some/most dealers are willing to give up their finance commission rather
than discount the car.
--
Doug Ramage

***Watch Spam Trap***

Re: Leasing a TT
 

In article <bn82a4$uqcn3$1@ID-34015.news.uni-berlin.de>, Doug Ramage
<spamdoug-ramage@taxman.uk.com> writes
>Some further comments (UK perspective):
>
>1. Different finance companies can have different views on a particular
>car's residual value.

And also different models with equal retail prices can also have
different residuals. During recent research, I found the residual value
placed on an A3 Sport to be less than that on an A3 SE, despite both
having the same retail price.

>2. Excess mileage charges can vary.

Though usually around the 7-8 pence per mile mark.

>3. Amount of remedial work at the end of the lease can vary.

You mean work by the customer? All lease contracts I've been a part of
require that the vehicle be returned in the condition it was supplied.

This means no making holes for car kits and the like, and any accident
damage must be repaired.

I rule of thumb I was given by a local bodyshop that does a lot of work
on lease cars, prior to return, was that the vehicle should have no
obvious blemishes when viewed all round at a distance of one metre.
--
Toby

Re: Leasing a TT
 

> Leases make sense for 3 type of folks:
>
> 1) Get to drive a car that you could not afford the payments on to
> purchase. (You really should buy something you can afford if you are
> in this group)
>
> 2) You want the newest car at all times (for whatever reason) and
> wouldn't keep your car past 3 years if you bought it anyway.
>
> 3) You are writing it off as a business expense or other tax reason
> (though this usually coolapses down to reason 2 if you think about it)
>
> With a lease you are paying to drive the car, at the end of the lease
> you own nothing (and owe nothing).
>
> You always want to minimize your out-of pocket, as you are better off
> paying that money over the term of the lease (cost of money is a big
> factor in leasing).
>
> I generally have 1 car leased and one purchased at any given time. The
> leased car is always done with near 0 out of pocket, no money down.
> The purchased car is done with the biggest down payment I can afford
> and the shortest loan period I can afford. The purchased car is kept
> for 10+ years, the leased car for 3.
>
> Factoring just the raw costs (lease payments vs. loan payments,
> depreciatioin vs owning nothing, etc) and not including cost of money,
> my leased car is the same cost as purchasing the same car and
> re-selling after 3 years. But, I do not have to re-sell it and I get
> sales tax breaks when I trade for another lease. After including those
> factors (and even better with cost of money) I come out well ahead on
> the lease: GIVEN THAT I DO NOT PLAN ON KEEPING IT PAST 3YRS ANYWAY.
> The longer you keep the car the better a purchase looks.
>
> Also, if you drive more than about 18kmi/yr the lease can start
> looking unattractive as well (too low a residual value means too high
> a lease payment).
>
> Leasing a car at the begining of a new body style helps, as you get a
> higher residual value.
>
> Scott

your forgetting a few things, there's a set value at the end of the lease,
so there's an asset. With a lease the interest is lower so are the taxes,
and with that savings you can invest it and make your money back. The most
important there are no repair cost, to get "money/value" out of a purchase
the vehicle must be kept 9 years or 3 leases. I was told a lease is like
dating and purchase is a marriage