[Biturbos4] lease

[daniel chisholm]

Has anyone considered paying just the depreciation on a New S4? basically lease it to yourself?
 
I was consdiering this on a 04 used with 15k miles.. price was around 41k.  I fugured a 58% depriciation value at year 4..  with msrp of 48 (conservative)
 
so $20,160 must be paid by year 4 (2008)..  Year 1 has taken the largest hit at approx 30%  but to be conservative I will make it even depreciation. 
 
That gives me 3 years for 20.160 to be paid.. 560 a month plus interest.
 
Has anyone considered this? I guess the risk is in prediciting the residual value at year 3 or 4.. Leases tell you the residual but it is not exact.. 

Some guys at work (finance company) go even further by usuing an auto equity loan offered by the credit union.. Same as used car at 6.5% 3-7 years and you can write off the interest.. 

Of course you need to put down 20k to get this.. that is the kicker.. but a interest only HELOC is about 80 a month on 20..
 
Overall the price comes in around the same each month.. Good part is you are not constrained or penalized for miles.. 
 
Just a thought.. 
Michael Benno <mbenno at yahoo.com> wrote:

I leased a 2001 S4 Avant new and was very happy. 

I was a returning lessee from my A4 avant, so I was given special terms, no money down and one month free. Of course the payment was higher given that no money was put down. 

The way leases work is the more you put down the less you pay in payments. The down payment is the present value of the difference between the payments for 0 down and something down. Consider it prepaid depreciation. It all has the same time value of money. Leasers would prefer to have money down because it helps 1) offset risk, 2) gives gash in hand to reinvest, 3) offers consumers and option to have a lower reoccurring payment. The thing you need to keep in mind is that there is no real deal, all the different payment options and durations all have the same effect, which is the lease is the cost of the depreciation on the asset over the time period. The buyout is generally the market value of the car plus a reconditioning fee (roughly 1800). Generally in a lease your buyout in the early stages will exceed the sellable price. After about 2 years you generally owe less than you can sell it. 

However, I was very happy with the maintenance package, essentially I paid for nothing except for gas and snow tires.
Mike Benno
a6 2.7t
daniel chisholm <dbc112 at yahoo.com> wrote:
Anyone out there leasing the new S4? Was wondering what kind of deal you received... 

I have seen anywhere from 39 months 0 down 15k per year at 699 to 750... 



Thanks,
Dan


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