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pre-paid lease vs. cash

Discussion in 'General Automotive Discussion' started by smg2, Aug 16, 2004.

  1. smg2

    smg2 F1 World Champ
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    #1 smg2, Aug 16, 2004

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  2. smg2

    smg2 F1 World Champ
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    #2 smg2, Aug 16, 2004
    so i gather that this lease option is very new or no one has any experiance with it.
     
  3. tfazio

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    #3 tfazio, Aug 16, 2004
    I have heard of Pre-Paid leases. Essentially, the finance company settles for less money overall since they are getting the whole balance upfront which I am sure you figured out. I believe you still have to pay tax on the one time lump sum payment so see if that has been included in your one time payment. Definitely read over the whole contract. You should also figure out how much a monthly payment would be on the 2 year Lease. How is the Leasing co/finance company making money you ask? Well they are figuring the payments on costs of $81K? What is the true cost of the car to them? A lot less than that right. It still seems like a good deal though. To lease an A8L w/ no money down would cost a lot more than $29,500.00 over 2 years through Audi Financial Services.
     
  4. smg2

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    #4 smg2, Aug 16, 2004
    we have negotiated the cost of the car down to 77k. the residual is set at 52k and upfront cost is 30k. money factor converted over to APR is 1.2%. it looks as though i save a bit if not wash. becouse the cash out purchase would have a tax of roughly 6k. this looks like it'll allow me to invest the remaining 50k that otherwise i wouldn't be able to.
    thoughts???

    the car was custom spec'd for the owner, who later decided on a porsche from his porsche dealership. to say this car has everything is an understatement. but still a nice sleeper.
     
  5. tfazio

    tfazio Formula 3
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    #5 tfazio, Aug 16, 2004
    It sounds like a good deal. I am assuming you are under no obligation to purchase the A8L at the end of the lease. Is that correct?
     

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  6. smg2

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    #6 smg2, Aug 16, 2004
    3 choices,
    return car and keys
    finance
    cash out

    so short answer is no. apperrantly it's done by those who can afford to or normally buy their cars outright but whish to retain 50-60% of their cash for investment reasons.

    whish this was available yrs ago...
     

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