leasing audi's

[David_Wagner@vos.stratus.com]

Alexei, et al,

I have leased two VW products over last 6 years:

My 87 GTI and my 90 Coupe Quattro.

I will be purchasing the Coupe, already purchased the GTI.  My wife (fiance'
at the time) bought her 91 Audi 80.

My advice on leasing is as follows:

1.   If you can earn more interest on the investment that would otherwise
     be your down payment than they charge on the lease, then leasing is
     an unqualified win, IF:
     A.   The residual they setup for the end of the lease is reasonably
          high.  This is true if you WILL NOT be buying the car
     B.   Or, if the residual is an amount you think will be fair if you
          have the right to buy the car for that amount at the end of the
          lease and you WANT to buy it then.
2.   If you have to put a large down payment, then leasing is almost always
     a lose...  after all, the point is minimal entry cost to the vehicle.
3.   If you do get a lease, and believe you MAY want to buy the car at the
     end if it works well, etc... then make sure you retain the right to
     buy it - IN WRITING - at a fixed price (residual)... Then do
     calculations per 5. below.
4.   My personal opinion for these uncertain times with low interest
     rates is that leasing is not a generally smart thing to do now,
     unless you have your heart set on a vehicle you can't otherwise afford.
     (and then you'll pay for that privilege).

5.   The secret with leasing is no different than buying. Calculate TOTAL
     costs. Get the entry price, total payments over time - including
     interest, residual, etc.  Add them up and divide by the time to pay for
     it.

BTW: the reason you probably can't lease a Jetta is because it's residual is
so low and uncertain (based on length of lease) that they don't want to have
to take back a car with, say 50K miles and then try and sell it to recover
their costs.

Good luck, and don't let the "confusing" concept of leasing get you down...

Let us know what you decide.

David Wagner
91 Audi 80
90 Quattro Coupe
87 GTI