Leased vehicle, low mileage

[scarlet knight]

I leased an Audi A4 in June, 2018. I have a three year lease that allows 12,000 miles per year. Due to CV19, we have been sheltering in place since mid March. I’ve done 200 miles in the last two and a half months. I have 15,000 miles on it at year two.

I like the car. If I buy the car at the end, will I be getting a great deal due to the very low mileage? Do I want to buy an Audi out of warranty due to potential expensive repairs for Audis?

I have a year to figure it out. My former strategy was to buy a Honda Accord for cash and keep it for ten years.

[bondtoys]

Originally Posted by scarlet knight

I have a year to figure it out. My former strategy was to buy a Honda Accord for cash and keep it for ten years.

This comes from a german - the Honda plan sounds like a much better idea

[Watchflair]

As far as the great deal - depends on the buyout / residual at the end of the lease.

Maintenance wise - an Audi or any high end German vehicle is going to cost more to maintain than a Honda. You could look into extended warranties if you are worried about Iong term ownership costs.


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[1William]

I would project my miles at the end of the lease and check the values of the vehicle as retail and trade in. I would also look at the depreciation on the vehicle during the time it would take you to pay it off and see how far down it will go. I have never owned an Audi but numerous Mercedes-Benz's and I found that the vehicles would hold value for a while, drop like a rock, stabilize and repeat. I would turn the vehicle back in as service, maintenance and depreciation will eat you alive in most German vehicles. I would go look at a Lexus if I wanted a luxury car and either buy a certified pre-owned or grab a lease and look to a purchase at the end. Good luck and let us know what you decide.

[GoingPlaces]

Originally Posted by scarlet knight

I leased an Audi A4 in June, 2018. I have a three year lease that allows 12,000 miles per year. Due to CV19, we have been sheltering in place since mid March. I’ve done 200 miles in the last two and a half months. I have 15,000 miles on it at year two.

I like the car. If I buy the car at the end, will I be getting a great deal due to the very low mileage? Do I want to buy an Audi out of warranty due to potential expensive repairs for Audis?

I have a year to figure it out. My former strategy was to buy a Honda Accord for cash and keep it for ten years.

Depends on residual. That information is in the lease agreement. If it’s reasonable and you really like the car why not. Especially if it hasn’t given you any problems. You should be able to negotiate the price as well.

I bought mine out, was way under on miles and loved the car. It was trouble free and so no real purpose in getting a new one since it was virtually unchanged.


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[brandrea]

I’d never own an Audi, Mercedes, BMW off warranty.

If you like the car and it’s low mileage you could always drop an extended warranty on to it.

I personally like to rotate between new cars every four years, simply for variety sake.

[GB-man]

Crap happens just be glad you’re not over on miles.

You might be able to pawn it off on someone else via swapalease and get the Honda.

I bought two brand new vehicles in November/December lol we have 3k miles between then. Has not stopped me from entertaining a trade in for something else haha

[James Madsen]

Isn’t Audi usually 4 years warranty? You’d still have a year left, also if you had Audi doing your maintenance (which I assume you did because it’s a lease) they'll let you extend the warranty (you’ll basically buy your own car CPO when you turn in your lease).

To me that would be much preferable to getting a Honda but to each his own...

[scarlet knight]

Originally Posted by James Madsen

Isn’t Audi usually 4 years warranty? You’d still have a year left, also if you had Audi doing your maintenance (which I assume you did because it’s a lease) they'll let you extend the warranty (you’ll basically buy your own car CPO when you turn in your lease).

To me that would be much preferable to getting a Honda but to each his own...

I do prefer the Audi to the two Hondas I owned. I will take a look at the buyout price for the Audi. Maybe they will wheel and deal. A lot of options open to me.

[~JJ]

I bought the extended warranty on my Q5 (8yr/ 80,000 miles) and it was around $4k... to help you factor future costs while deciding. I would keep the A4 with those low miles.

[scarlet knight]

Originally Posted by ~JJ

I bought the extended warranty on my Q5 (8yr/ 80,000 miles) and it was around $4k... to help you factor future costs while deciding. I would keep the A4 with those low miles.

What does the extended warranty cover? Do you have to pay for oil changes, minor and major services?

[JasoninDenver]

Originally Posted by scarlet knight

I do prefer the Audi to the two Hondas I owned. I will take a look at the buyout price for the Audi. Maybe they will wheel and deal. A lot of options open to me.

I have a feeling you will get a good deal given that the used car market is being flooded with rental companies starting to off load inventory.

[mrricks]

Pay cash for a Hyundai or Kia. Keep for twenty years.

[scarlet knight]

Originally Posted by mrricks

Pay cash for a Hyundai or Kia. Keep for twenty years.

They feel dated to me when I rented them. If I went that route, I would go Honda or Toyota.

[gnuyork]

I have driven Audis for most of my car ownership. I currently don't drive one now though, and likely never will, just due to them getting fancier, I feel like they have lost their way...but bottom line, I spent way too much on repairs for a 98 A4 and a 2001 TT, but I drove a 2012 A3 TDI for almost 7 years and literally nothing needed repairing on that car other than a few small recalls. I had the oil changed, tires changed and one break job... Flawless car. I traded it in for the cash though due to the class action law suit. They gave me $28K for it. I couldn't argue with that. So I turned around and bought a 2018 (new) Miata Club with Recaro seats and BBS wheels. I don't regret it for a second. But I also didn't need a car with back seats.

[scarlet knight]

What was wrong with the 2012 A3 that they gave you $28K for it?

[Tools]

If you like the Audi, buy it.

I chuckle a bit when folks say that an expensive car is expensive to repair... of course it is. That doesn't make it a bad car, are only cheap cars worth repairs?

Of course, these are the same folks that drop a couple grand on a Rolex service.

[RW16610]

It's totally your call! You must like the car a lot and should consider keeping it. I personally would feel more comfortable with a warranty but at least in this case you know the previous owner took good care of it

[CamSLC]

If you like it, keep it! Nice things cost a little more to maintain.

It's pretty easy to check your contract or call the leasing company to get the residual + buyout price. Sometimes the lower miles make it worth buying out.

[scarlet knight]

I will look at my contract today for the buyout price.

[CamSLC]

To buyout early, it will be the residual plus the remaining payments.

Also consider, depending on your location, you may need to pay sales tax, title, and registration. Its currently registered to the finance company.

[Mifune]

Originally Posted by mrricks

Pay cash for a Hyundai or Kia. Keep for twenty years.

do they run for 20 years?

[scarlet knight]

My buyout is $26.5K. I could buy the Audi or a new Accord for about the same price. I have preferred the Audi. My two previous cars were Honda Accords for 10 years, about 200K miles on each. But I am semi-retired for the last two years and do far less driving.

[gnuyork]

Originally Posted by scarlet knight

What was wrong with the 2012 A3 that they gave you $28K for it?

Absolutely nothing wrong with it, but Audi and Volkwagen mislead customers on a diesel emission claim, so they offered to buyback cars from certain period. I really debated if I wanted to give it up, but in the end the amount offered was far more than the car was worth.

[Chewbacca]

Originally Posted by Tools

If you like the Audi, buy it.

I chuckle a bit when folks say that an expensive car is expensive to repair... of course it is. That doesn't make it a bad car, are only cheap cars worth repairs?

Of course, these are the same folks that drop a couple grand on a Rolex service.

People are likely referring to the frequency of repair bills which results in higher overall cost of lifetime ownership. Not the actually cost per service.

Originally Posted by scarlet knight

My buyout is $26.5K. I could buy the Audi or a new Accord for about the same price. I have preferred the Audi. My two previous cars were Honda Accords for 10 years, about 200K miles on each. But I am semi-retired for the last two years and do far less driving.

I’d return it.

My sources tell me the residuals are too generous and you’ll be able to buy that same car back for 5-15% less as a cpo and you get additional warranty and a lower to zero APR if you want to invest your cash.

Unless you love the car, it makes little to no sense unless it’s also a rarity or has amazing resale; recent Audi’s are neither in my opinion.

[scarlet knight]

Has anyone extended the lease for a year? Car would still be under warranty. Worth it financially? Amortizes the money I put down for another year. Would it cost less per month than I pay now?

[scarlet knight]

Originally Posted by Chewbacca

People are likely referring to the frequency of repair bills which results in higher overall cost of lifetime ownership. Not the actually cost per service.



I’d return it.

My sources tell me the residuals are too generous and you’ll be able to buy that same car back for 5-15% less as a cpo and you get additional warranty and a lower to zero APR if you want to invest your cash. Or I could look at their CPOs. Seems like sedans are less popular than SUVs, too. Could help on price. As could financial turmoil.

Unless you love the car, it makes little to no sense unless it’s also a rarity or has amazing resale; recent Audi’s are neither in my opinion.

I could buy a CPO for 5-15% less or I could ask Audi to knock 5-15% off my car, which I know that I babied and had no accidents (knock on wood so far). If Audi wants to negotiate with me.

[Chewbacca]

Originally Posted by scarlet knight

Has anyone extended the lease for a year? Car would still be under warranty. Worth it financially? Amortizes the money I put down for another year. Would it cost less per month than I pay now?

No way to know without the details.

I’d wait until 6mo out if that’s what you’re considering, now. They’ll come to you to keep it or extend it. They don’t want the car back. They want to sell new.

[Chewbacca]

Originally Posted by scarlet knight

I could buy a CPO for 5-15% less or I could ask Audi to knock 5-15% off my car, which I know that I babied and had no accidents (knock on wood so far). If Audi wants to negotiate with me.

The details.

I think you have enough to go on now. Good luck.

[scarlet knight]

Originally Posted by Chewbacca

The details.

I think you have enough to go on now. Good luck.

Something pleasant to think about amid the pandemic, etc.