Approaching end of lease - Options advice

[Party_Taco 3660]

So I’ve got 6 months left on my 2017 A6 lease and I’m trying to figure out my next move. Currently paying $550/mo with Audi care and wheel coverage. Not locked into Audi but it’s certainly been nice... That said, went into the dealership today and even if I went down a model to an A5 Sportback, they want $250/mo more than I’m paying now and that’s with 4K down.

 

Now, the car I have is currently 9k under on allotted miles, but they’re telling me that’s worthless because of the new model A6 coming out. I walked out before even beginning to negotiate, but I’m not really stoked on their starting point.

 

Obviously I’ll take it to other dealers, but they are the highest rated in the area. Any advice on how to move forward?

[Helobious 9394]

Make wiser financial decisions.

[StruggleBus 3922]

Stop leasing 

[Telegraph_it 3350]

Walk away and lease a untitled loaner BMW or Mercedes. I have my wife in a X5 for $490 a month. I only paid TT&L upfront. Never put money down on a lease. 

Edited November 6, 2019 by Telegraph_it

[Party_Taco 3660]

Stop leasing 

Had never done it before - Always owned but had never gone German (cars) previously and didn’t want to buy into a maintenance nightmare.

[TwiceHorn 30730]

1 hour ago, Telegraph_it said:

Walk away and lease a untitled loaner BMW or Mercedes. I have my wife in a X5 for $490 a month. I only paid TT&L upfront. Never put money down on a lease. 

What is an "untitled loaner"?  What difference does it make?

[Sbbruin 21570]

Go with a 10 yr o.d Corvette and just finance it over 72 months.  Problem solved.

[HRSchenker 2215]

Why not buy a Tesla Model 3? Cheaper monthly payments and you'll retain equity better than most vehicles. Leasing a vehicle makes no sense to me. 

[Bevo 13418]

9 hours ago, Party_Taco said:

Now, the car I have is currently 9k under on allotted miles, but they’re telling me that’s worthless because of the new model A6 coming out. I walked out before even beginning to negotiate, but I’m not really stoked on their starting point.

I hate dealing with this kind of shit, but the obvious answer is that if your car isn't worth anything then you should be able to buy it for nothing. As for lease deals, I have never leased but carsdirect has a link for the best lease deals each month for each car class: https://www.carsdirect.com/deals-articles/best-lease-deals

 

[CooterBrown 17698]

Now, the car I have is currently 9k under on allotted miles, but they’re telling me that’s worthless because of the new model A6 coming out.

Never in the history of automobiles has a car been virtually worthless when a new model comes out. Otherwise probably 20% of all cars on the road are currently worthless.

Go trade in that leased car somewhere else. For a car you buy.

[UTPhil2006 3754]

Going with my response I was going with before I opened the thread and read it.

Buy a house

[Jkwellborn 6536]

Why not buy a Tesla Model 3? Cheaper monthly payments and you'll retain equity better than most vehicles. Leasing a vehicle makes no sense to me. 

Because he’d like to get it before he retires.

[Reagan1k 3000]

Maybe I'm wrong but I read the OP as saying the dealer indicated that the extra mileage he had left added no additional value to the presumed residual in the contract.

OP might want to run the car by someone like D&M Leasing if he is in TX - They'll buy it and turn around and do a private used car lease....and they could interface with the leaseholder directly.  Might get more from them than the dealer who will turn around and just wholesale it.  They have no incentive to offer you market value since they have you stuck in the contract.

Similarly, the OP can do a sale / pay off lease extracting more value through a private party sale and then move on to the next vehicle.

Edited November 6, 2019 by Reagan1k

[Telegraph_it 3350]

13 hours ago, TwiceHorn said:

What is an "untitled loaner"?  What difference does it make?

Because you lease it as a new car with the same residual. For a BMW I think loaners with less then 3,500 miles qualify. 

[Js1 82403]

18 hours ago, Party_Taco said:

 

So I’ve got 6 months left on my 2017 A6 lease and I’m trying to figure out my next move. Currently paying $550/mo with Audi care and wheel coverage. Not locked into Audi but it’s certainly been nice... That said, went into the dealership today and even if I went down a model to an A5 Sportback, they want $250/mo more than I’m paying now and that’s with 4K down.

 

Now, the car I have is currently 9k under on allotted miles, but they’re telling me that’s worthless because of the new model A6 coming out. I walked out before even beginning to negotiate, but I’m not really stoked on their starting point.

 

Obviously I’ll take it to other dealers, but they are the highest rated in the area. Any advice on how to move forward?

 

I also had this happen with Audi.  I was at half of my allotted miles and they told me it didn't mean shit with the new model coming out (this was in 2017).  So I took it somewhere else (VW, actually), who took it off my hands and used it towards a new car. 

[Party_Taco 3660]

You got any more details on that transaction, JS1? Would be interested to hear what kind of equity you got to roll into a new vehicle.

[Js1 82403]

11 hours ago, Party_Taco said:

You got any more details on that transaction, JS1? Would be interested to hear what kind of equity you got to roll into a new vehicle.

I honest to god do not remember.  But take it around, see what places offer.  Pull your payoff quote and see if CarMax will give you that amount or more to take it off your hands. 

Edited November 7, 2019 by Js1

[Reagan1k 3000]

@Party_Taco     Yeah - bottom line is that the lease holder has no incentive to deal with you.  They have a contract and will either get the car back or a pay-off based on that document.  They really don't care either way.  Any residual value would have to be extracted from a 3rd party and come via shoe leather on your end.

[TwiceHorn 30730]

18 minutes ago, Reagan1k said:

@Party_Taco     Yeah - bottom line is that the lease holder has no incentive to deal with you.  They have a contract and will either get the car back or a pay-off based on that document.  They really don't care either way.  Any residual value would have to be extracted from a 3rd party and come via shoe leather on your end.

I guess the naive notion is that with low miles, the lessor can turn around and sell it for more than the residual and come out ahead.  But the reality is that it's auctioned off at some undetermined price just to get it off the lessor's hands.

So a lessee can sell a leased vehicle pretty freely?

[Reagan1k 3000]

Yeah - There's an added step when you involve a 3rd party but if there is equity there above the buyout it may be worth the time/effort.

Another dealership, CarMax, etc. can easily do this- They'll pay the leaseholder directly for the buyout and cut a separate check for any equity to you.

If it is a private party sale there are more step and potentially TTL involved (depends on the state and how it is done) but it can be done.

Key step is to get the numbers both from a willing dealer and/or what a private sale might garner.....Then decide if the juice is worth the squeeze.

I think there are now even some websites dedicated to this working as clearinghouses for buyers and sellers/lease holder.  Don't have any experience with those sites but have heard its a thing now on the interwebs.

[TwiceHorn 30730]

Yeah, now that you mention it, I think I've heard of that.  Lease assumption/buyout sites.

I'm just curious.  Leasing is antithetical to my model of car ownership.

[Reagan1k 3000]

Never leased myself but my partner has and I've seen him play the game a time or two.

Not sure how successfully but he's played it.  Anything with cars is catching the falling knife of depreciation.

You never "win" just try to avoid the bad loss.

[Chewbacca 7613]

OP, do you like your A6?  Why not just buy out the lease and drive it for a few more years?  These cars are really well put together.  

[Party_Taco 3660]

OP, do you like your A6?  Why not just buy out the lease and drive it for a few more years?  These cars are really well put together.  

I do, but it’s a boat and I live in the city now (which, along with the SO just having to have a backyard for the dog instead of a parking pad) is the reason I’m not buying a Tesla.

Keeping it will be part of the equation however, so based on the suggestions up thread I’ll hit the pavement and see what I can get out of the deal.

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