swoleCL

Hey guys, the wifes mdx is paid off and she wants a new car (yes she gets the better wheels). I'm considering leasing, audi has a decent program for their new A4s. Question I have is, if I trade in the MDX, how does that work, say the vehicle is valued at 14,000 and the money down to begin the lease is only 4500. Where does the rest of the money go? Can I put all of it down and never have a lease payment? Im confused.

Thanks =)


-- Mods I wasnt sure to put this in here or money/investing please leave open for a little

wndrlst

I looked into it briefly before buying the TSX. Unfortunately, they limit the amount you put down, so you have to still make monthly payments.

swoleCL

Did they give you money back on top of your trade? or give you a really neat hat, shirt and key ring package?

Zippee

If it's not for business use I have never seen an advantge to leasing rather than owning.

Fishy

You dealer should accept the MDX as trade-in and give you 14k or whatever you can haggle for. This is applied to the sale price.

I've leased and bought at the end of the term the last three cars I've owned and I'll probably do the same with my TL-S. I like the flexibilty of handing over a lemon back to the dealer or keeping a good one. I've had pretty good luck so far with good cars by avoiding Detriot/German makes

People give the risks of being locked into a lease, but the fundamental personal finance rule is: never live beyond your means.

swoleCL

^^ Thank you, exactly what I needed to know.

ZhenyaF

iTrader: (6)

I had a Scion tC financed on which I owed $11k. It was worth $14k. When I leased my tsx, the dealer gave me $14k for it. They gave Toyota $11k and I asked for a check for the balance. Got a $3000 check from the dealership. I prefer to put $0 down on a leased car, just in case something happens to the car, I get to keep the would-be deposit.

PolishPete

Good point. If you total a lease...that's it...its void. They have their own gap type coverage for it, so you're not on the hook for the $. That being said, if you put $4K down for a lower payment, and total it 6 months later. You're out your $4K. Now I'm not sure if they'll put that into a different lease for you with the same company, but lets says its a year later and you want a different brand of car, then you'd be out the money.

I just went through with leasing an 08 Audi A4 SE in June, so if you have any questions, or would like to know the deal I got...ask away.

taitando

The point of a lease is to get into a car with as little cash out of your pocket as possible. IMO, trading in a $14k MDX to lease an A4 is a big mistake. All that $14k would do, would be to act as a down payment (called cap cost reduction for leases) lowering the monthly cost of the car. For those in the know, putting any type of down payment on a leased car is a bad idea.

Consider this. If the you get into a serious accident in the first few months of the lease and the car is totaled, the $14k is completely lost. Even with collision and gap insurance, no portion of the $14k down payment is ever refunded.

Again, the appeal of leasing is to be in a new car every 3 years or so, having peace of mind in a new car warranty, and keeping more cash in your pocket to maximize your cash flow. You can't do that when your money is tied up in a large down payment for a lease.

mr5parkle

iTrader: (1)

that is, perhaps, the biggest drawback you'll be facing when trading in the mdx for a lease. it's fine if you believe you are 100% certain that you will not be getting into any accidents.

worst case scenario leasing: you trade in, you sign new lease, drive off the lot, get totaled within 5m, insurance pays for the car and you're out of 14k

worst case scenario buying: you trade in, you sign new purchase, drive off the lot, get totaled within 5m, insurance cuts you and the dealership a check.