Should I purchase my end-of-lease Audi A4?

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PaleoWorx
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Re: Should I purchase my end-of-lease Audi A4?

Post by PaleoWorx »

There is a reason most European cars are leased, not purchased.
There is also a reason why these off-the-lease cars lose 40-50% of value in just 3 years.
bikesandbeers
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Re: Should I purchase my end-of-lease Audi A4?

Post by bikesandbeers »

I had a 1998 A4, and the service guide was for a4/ passats. Dpending on how the car is optioned, you can mostly use VW parts, and find a good idependent mechanic. Do not use the Audi dealer for service.

I bought the car with 100k miles, between 75k and 100k, it had a valve job, timming belt, and water pump replaced. The prevoius owner traded it in for basicly the cost of all of those repairs

In the 60k miles I had it, my only repairs were suspension related, plus brakes, tires, bulbs, the usual stuff. It was totaled at 160k miles, but i would have kept it for 200k

Do your research on what kinds of maintenance the current a4 can expect. The lockdown wont last forever if you will need to be commuting again
UALflyer
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Re: Should I purchase my end-of-lease Audi A4?

Post by UALflyer »

PaleoWorx wrote: Wed May 13, 2020 9:13 am There is a reason most European cars are leased, not purchased.
There is also a reason why these off-the-lease cars lose 40-50% of value in just 3 years.
Right, and there are a couple of reasons for it, all of which make a number of these vehicles a very good value when they are slightly used. Quite a few people use luxury cars for status reasons, which means that they buy/lease them brand new. This causes their initial depreciation to be quite steep, but after that initial steep drop, the depreciation plateaus and starts to rival that of their non-luxury counterparts. This is the exact opposite of many non-luxury vehicles, as most Honda and Toyota models, for instance, undergo limited initial depreciation, which makes their slightly used models a rather poor financial value.

A number of luxury automakers, like BMW, subsidize their leases, so for a person who wants to drive newer cars, leasing can be cheaper than buying. This actually makes it easier to find gently used and extremely well maintained models that are still under their factory warranty (remember that with luxury cars, the factory warranty is 4 years/50K or 60K miles, while non-luxury cars have 3 year/36K mile warranties) that have already gone through the steepest part of their depreciation curve.

Likewise, there's these often repeated statements that European (and particularly German) cars should never be owned outside of their warranties, that their maintenance and repair costs are insane, etc... This all causes their initial depreciation to be quite steep, which also frequently means that while a lot of them represent very poor financial values when they're brand new, their slightly used models can hold their values pretty well, and they are pretty reliable, come with rather reasonable maintenance and repair costs.

There are quite a few of us out there who have been taking advantage of the above factors for many years, as it represents a good way to drive arguably better cars for way less than what a lot of people spend on their non-luxury counterparts.
Last edited by UALflyer on Wed May 13, 2020 11:09 am, edited 3 times in total.
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hand
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Re: Should I purchase my end-of-lease Audi A4?

Post by hand »

Tirebiter wrote: Sun May 10, 2020 6:41 pm The wrinkle, as of late, is that I am barely driving. My wife and I have both been working from home due to the Covid shelter in place rule. I work for a large corporation and can perform my job at almost 100% effectiveness remotely (although I'm not sure if my employer would agree with that). I have driven the car maybe 3 times in the last 2 months, never for more than 10 miles. We already own a second car.

I can afford to buy the car without any detrimental impact on my savings plan for the time being. But I am wondering whether it might be smarter to just let the car go, wait until I need to commute to work again (no idea when that will be) and then shop for a different vehicle.
Why pay for a second car you don't need if you have to?

You already know the answer - take advantage of the optionality you paid for as part of the lease. Turn back the car, bank your lease / insurance / gas savings until you absolutely need a second car and when you do, buy or lease a second car.
Topic Author
Tirebiter
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Re: Should I purchase my end-of-lease Audi A4?

Post by Tirebiter »

Thank you all for the very helpful responses. Based in part on the feedback here I have decided to turn the car in, and will most likely end up shopping for a CPO version of a similar car in the winter, when I think prices will be lower. I heard from someone more knowledgeable than I, that the impact of unemployed people defaulting on their car payments has not hit yet and will probably not result in a glut of inventory for another five months, at least, at which time I may be able to get a much better deal. OR if I’m unemployed myself at the time, I’ll at least rest a little easier without being out $30k.

It was helpful getting peoples’ perspectives (from both sides) regarding the German luxury car reliability argument. I can only offer my own anecdotal experience - my A4 never gave me any problems and was not that much more expensive to maintain than my other car (a 2012 Acura TL). In my personal experience the car that gave me the most trouble (not terrible but annoying) was a 2010 Honda Pilot. I know it’s not scientific but my experience has probably left me a little skeptical of the vaunted reliability of Japanese cars.
nura
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Re: Should I purchase my end-of-lease Audi A4?

Post by nura »

GoldenFinch wrote: Sun May 10, 2020 7:01 pm My Audi, bought after a three year lease, was a disaster. It ended up having continuous mechanical problems. Maybe it was just a lemon, but it was a bad experience.
It was just an Audi
notBobToo
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Re: Should I purchase my end-of-lease Audi A4?

Post by notBobToo »

Tirebiter wrote: Wed May 13, 2020 6:23 pm Thank you all for the very helpful responses. Based in part on the feedback here I have decided to turn the car in, and will most likely end up shopping for a CPO version of a similar car in the winter, when I think prices will be lower. I heard from someone more knowledgeable than I, that the impact of unemployed people defaulting on their car payments has not hit yet and will probably not result in a glut of inventory for another five months, at least, at which time I may be able to get a much better deal. OR if I’m unemployed myself at the time, I’ll at least rest a little easier without being out $30k.

It was helpful getting peoples’ perspectives (from both sides) regarding the German luxury car reliability argument. I can only offer my own anecdotal experience - my A4 never gave me any problems and was not that much more expensive to maintain than my other car (a 2012 Acura TL). In my personal experience the car that gave me the most trouble (not terrible but annoying) was a 2010 Honda Pilot. I know it’s not scientific but my experience has probably left me a little skeptical of the vaunted reliability of Japanese cars.
Former owner of a 2017 A4 here. My opinion, Audi went yard with the 2017 A4. Great vehicle: amazing technology, surprisingly quick, great looking inside and out, and no issues whatsoever in three years of ownership (albeit low mileage). Because of family issues (which required downsizing to a single vehicle that could haul us and belongings across country), I reluctantly traded the Audi in on a 2020 Acura RDX, which has given me nothing but trouble. So I can second your experience on the whole "buy Japanese" myth. Oh, by the way, I got 26k on my trade. Not bad for a three year old German.
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JAZZISCOOL
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Re: Should I purchase my end-of-lease Audi A4?

Post by JAZZISCOOL »

bikesandbeers wrote: Wed May 13, 2020 9:47 am I had a 1998 A4, and the service guide was for a4/ passats. Dpending on how the car is optioned, you can mostly use VW parts, and find a good idependent mechanic. Do not use the Audi dealer for service.

I bought the car with 100k miles, between 75k and 100k, it had a valve job, timming belt, and water pump replaced. The prevoius owner traded it in for basicly the cost of all of those repairs

In the 60k miles I had it, my only repairs were suspension related, plus brakes, tires, bulbs, the usual stuff. It was totaled at 160k miles, but i would have kept it for 200k

Do your research on what kinds of maintenance the current a4 can expect. The lockdown wont last forever if you will need to be commuting again
As posted above, I had a 1998 A4 Turbo. Well under 100k when it blew through 2 engines.

"I had an Audi A-4 T lemon bought gently used (off lease). This was a long time ago but after replacing 2 engines and having it towed over 300 miles after a breakdown, I was so happy to replace it. :|

YMMV."
SR II
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Re: Should I purchase my end-of-lease Audi A4?

Post by SR II »

I'd give them the car back when the lease ends. Save on insurance, lease/purchase payments, maintenance, etc. until you actually need two cars again. My guess is you will be able to get a screamin' deal on a vehicle when things start moving again.

Wish my lease was coming due about now, rather than a year old car sitting in the garage for the past two and a half months while I make payments!
Topic Author
Tirebiter
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Re: Should I purchase my end-of-lease Audi A4?

Post by Tirebiter »

As an interesting footnote, the car is now on sale at the same dealership where I turned it in, for $1k less than the residual price that they refused to budge on 2 weeks ago. I'm glad I didn't buy it.
jello_nailer
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Re: Should I purchase my end-of-lease Audi A4?

Post by jello_nailer »

cableguy wrote: Mon May 11, 2020 7:58 am See if you can keep leasing it another year. Keep the car....same payments....one more year....and then give it back. I've done it before with a Honda.
^ This. I have extended a lease on a number of cars usually at really favorable term. Usually it was for mileage reasons but in today's market I think you may get yourself really good deal. Basically a short new lease on your car with zero fee's. They will recast the residual value, your payment should drop. Then dump it.
Kagord
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Re: Should I purchase my end-of-lease Audi A4?

Post by Kagord »

The A4 is pretty ugly, there's a company called Lexus, and they are making really beautiful cars, especially the grill.

Return it and get the Lexus RX350 with this grill:
https://scl-performance.com/sites/defau ... sc6681.jpg
Jack FFR1846
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Re: Should I purchase my end-of-lease Audi A4?

Post by Jack FFR1846 »

Kagord wrote: Wed Jun 03, 2020 1:02 pm The A4 is pretty ugly, there's a company called Lexus, and they are making really beautiful cars, especially the grill.

Return it and get the Lexus RX350 with this grill:
https://scl-performance.com/sites/defau ... sc6681.jpg
My sarcasm meter just blew past the top reading and broke the case. I've not been a fan of the big open mouth Audi (and copy cat VW) grills. But the Lexus spindle grill is a true master disaster. I actually like the rest of most Lexus sedans and have thought about possibly buying one an then finding a custom bumper cover/grill that wouldn't look like a ginormous chrome big mouth bass.
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bogledogle
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Re: Should I purchase my end-of-lease Audi A4?

Post by bogledogle »

Tirebiter wrote: Tue Jun 02, 2020 2:21 pm As an interesting footnote, the car is now on sale at the same dealership where I turned it in, for $1k less than the residual price that they refused to budge on 2 weeks ago. I'm glad I didn't buy it.
It's probably a CPO now with new tires and brakes. You should go back and offer 5k less than what they listed it for 8-) :moneybag
jello_nailer
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Re: Should I purchase my end-of-lease Audi A4?

Post by jello_nailer »

The dealer must be the well known Dumass Audi?
stoptothink
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Re: Should I purchase my end-of-lease Audi A4?

Post by stoptothink »

Jack FFR1846 wrote: Wed Jun 03, 2020 1:10 pm
Kagord wrote: Wed Jun 03, 2020 1:02 pm The A4 is pretty ugly, there's a company called Lexus, and they are making really beautiful cars, especially the grill.

Return it and get the Lexus RX350 with this grill:
https://scl-performance.com/sites/defau ... sc6681.jpg
My sarcasm meter just blew past the top reading and broke the case. I've not been a fan of the big open mouth Audi (and copy cat VW) grills. But the Lexus spindle grill is a true master disaster. I actually like the rest of most Lexus sedans and have thought about possibly buying one an then finding a custom bumper cover/grill that wouldn't look like a ginormous chrome big mouth bass.
Wait, that is not photoshopped; that is legitimately the grill for the RX350?
jello_nailer
Posts: 377
Joined: Sun Apr 07, 2019 10:20 pm

Re: Should I purchase my end-of-lease Audi A4?

Post by jello_nailer »

That's a grill only a mother could love, or the designer and his mother.
:oops:
Kagord
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Re: Should I purchase my end-of-lease Audi A4?

Post by Kagord »

stoptothink wrote: Wed Jun 03, 2020 7:09 pm
Jack FFR1846 wrote: Wed Jun 03, 2020 1:10 pm
Kagord wrote: Wed Jun 03, 2020 1:02 pm The A4 is pretty ugly, there's a company called Lexus, and they are making really beautiful cars, especially the grill.

Return it and get the Lexus RX350 with this grill:
https://scl-performance.com/sites/defau ... sc6681.jpg
My sarcasm meter just blew past the top reading and broke the case. I've not been a fan of the big open mouth Audi (and copy cat VW) grills. But the Lexus spindle grill is a true master disaster. I actually like the rest of most Lexus sedans and have thought about possibly buying one an then finding a custom bumper cover/grill that wouldn't look like a ginormous chrome big mouth bass.
Wait, that is not photoshopped; that is legitimately the grill for the RX350?
It's an aftermarket add-on...but the real question here is why?...well, that question, in general, is unfortunately insoluble by man/woman or machine.
catdoctor
Posts: 38
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Re: Should I purchase my end-of-lease Audi A4?

Post by catdoctor »

Jack FFR1846 wrote: Wed Jun 03, 2020 1:10 pm
Kagord wrote: Wed Jun 03, 2020 1:02 pm The A4 is pretty ugly, there's a company called Lexus, and they are making really beautiful cars, especially the grill.

Return it and get the Lexus RX350 with this grill:
https://scl-performance.com/sites/defau ... sc6681.jpg
My sarcasm meter just blew past the top reading and broke the case. I've not been a fan of the big open mouth Audi (and copy cat VW) grills. But the Lexus spindle grill is a true master disaster. I actually like the rest of most Lexus sedans and have thought about possibly buying one an then finding a custom bumper cover/grill that wouldn't look like a ginormous chrome big mouth bass.
I am another that likes Lexus, but would not buy one with the ugly grill.
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