Overhaulin'

please help decide.. [would you rather buy or lease??]?

I am thinking about buying Audi A4 2.0 T. i am trying to avoid walking inside a dealer before i make up my mind. they gave me online one option on 2008 audi lease $500/ month, with 2000 down for 36 months. i do not know what the pay off after end of leas is. Now would it be better to purchase or lease such car? any information on buy vs lease would help. like for example, if i were to lease, and then after 36 months i decided to purchase the car, would the total paid on the car be same, or not, assuming $2000 down is also made on buying? please help if you have nay idea?? i need to decide buy tomorrow. i am self- emplyed

Public Comments

1. I lease my cars. I don't know what you do for a living, but I am self-employed. Leasing can be totally written off whereas owning must be depreciated. Secondly, you can drive a much more expensive car than you can afford to buy. Third, it is always under warranty. Fourth, You are always driving a new car. The bad thing is that it is a liability rather than an asset. Just remember, cars are money pits. The longer you own one, the more hassle it is going to become. Especially Euros. I used to own a Saab. When the transmission went, it was a $3000 fix. That's six months on a lease of a new car! Good luck!
2. Your lease is actually $500 per month plus $2000 / 36 for a total of $555.55 per month. Check the fine print. You may be required to carry an excessively high liability insurance coverage (which does not protect the car). It sounds like you'll be using this for a business, which could put a lot of miles on the car. Expensive, even at 10c per mile. The condition of the vehicle at the end of the lease period is a judgment call made solely by the dealer. You may have to pay for an expensive detailing job to restore the car to a resalable condition. You have one big unknown - residual value. That can make a lease option expensive. If the residual value is 60% for example, that's what it will cost you to purchase the vehicle at the end of the lease plus any over mileage fees. The vehicle may not be worth 60% of its original price. Check the details on the car maintenance. They may require you to have the car serviced at THEIR facility which could be expensive for labor and parts. There are other things in the fine print that you should carefully check.
3. Leasing is better only if you plan to get a new car a few years later. You should buy if you plan to keep it for more than few years.
4. Jordan is correct in that with leasing you are always in a fairly new car but the milage issue and the extra insurance for the A4 is going to be expensive. I would recommend purchasing if you drive more than 12K per year and plan to purchase the car at the end of the lease anyway.