Automotive

2016 Audi A4 Lease buy or return

  • Last Updated:
  • Oct 17th, 2019 8:32 am
[OP]
Newbie
Jan 16, 2016
59 posts
18 upvotes
Vancouver, BC

2016 Audi A4 Lease buy or return

Hey car deal experts,

My Audi A4 lease is coming to the end in next January. I’m trying to reason if I should return the car to dealer and get a bigger car, or just buy it out and sell after a few years.

My car is the 2016 progressive model, I have 80k KMs allowance for the lease term, but I only drove around 55k. Price for buyout after lease is 22k after tax, which seems to be a good deal according to prices on auto trader. The car has been reliable for the last 4 years, never had an issue with it.

I need a bigger when family grows, but the need is not urgent.

I know the decision here is really to buy my used Audi or buy a different new/used car? What do you suggest? I’m not so sure if I want to own an used Audi.

(Edit: 1. currently lease monthly price is $580 after tax. I don’t think I would not go beyond $650 if I were to get a new lease. 2. I got the car from Ontario, and now live in BC. Not sure if this would affect the resale value.)
Last edited by davzhao on Oct 13th, 2019 8:18 pm, edited 1 time in total.
27 replies
Deal Expert
Aug 22, 2011
35620 posts
21676 upvotes
Center of Universe
I say lease another one, maybe Q7 and if it's too big, dump it after 3yrs.
[OP]
Newbie
Jan 16, 2016
59 posts
18 upvotes
Vancouver, BC
too big and goes beyond my budget. A 5 seater SUV plus a good sized trunk should do the trick.
Deal Guru
User avatar
Jul 12, 2003
11653 posts
3955 upvotes
Toronto
Lease another one.
Retired Forum Moderator February 2009 - June 2015
[OP]
Newbie
Jan 16, 2016
59 posts
18 upvotes
Vancouver, BC
MP3_SKY wrote: Lease another one.
Care to explain your reasoning?
Deal Addict
Sep 8, 2017
4170 posts
4302 upvotes
GTA
Sounds like the car's been good to you. I'd keep it until you actually need to upgrade. Then either trade it in or sell it privately.
Newbie
May 22, 2019
44 posts
32 upvotes
One of the upsides of a lease is that you get to suss out if your car’s a lemon. A 55km A4 where you know the service history and the history of gremlins is something you should consider as valuable. It’s intuitive that 2016 A4s you see on the market have *something* wrong with them more often than your own A4. After all, most people who drive a new German car did so via lease, so those that you see for sale on Kijiji etc were deemed by their owner not to be “worth it” from a long term perspective. Talking out of my *** on proportions of leases but I suspect I’m correct.)

Don’t think at all about the money you’ve spent on lease payments because it’s a sunk cost; you have zero equity in the car beyond whatever below-expected mileage it has. Whether you lease again or buy out, you’re not getting those dollars back (yes, you may get *something* for doing a new lease with the same dealer, but let’s be honest and admit that no dealer will go into the red for one repeat customer). Can you buy something better for $22,000? Unlikely, since maintenance history is very key and it happens to be something you have perfect knowledge of. You could lock yourself in for another 3-4 years on a new lease, but I personally would only do that if there was something wrong with my current car.

It’s important to forget everything about past payments and only consider—objectively—the current and ongoing costs of your choices.

A4 is totally big enough for a 2 adult, 2 child family. P
Deal Expert
Aug 22, 2011
35620 posts
21676 upvotes
Center of Universe
Psp2019 wrote: One of the upsides of a lease is that you get to suss out if your car’s a lemon. A 55km A4 where you know the service history and the history of gremlins is something you should consider as valuable. It’s intuitive that 2016 A4s you see on the market have *something* wrong with them more often than your own A4. After all, most people who drive a new German car did so via lease, so those that you see for sale on Kijiji etc were deemed by their owner not to be “worth it” from a long term perspective. Talking out of my *** on proportions of leases but I suspect I’m correct.)

Don’t think at all about the money you’ve spent on lease payments because it’s a sunk cost; you have zero equity in the car beyond whatever below-expected mileage it has. Whether you lease again or buy out, you’re not getting those dollars back (yes, you may get *something* for doing a new lease with the same dealer, but let’s be honest and admit that no dealer will go into the red for one repeat customer). Can you buy something better for $22,000? Unlikely, since maintenance history is very key and it happens to be something you have perfect knowledge of. You could lock yourself in for another 3-4 years on a new lease, but I personally would only do that if there was something wrong with my current car.

It’s important to forget everything about past payments and only consider—objectively—the current and ongoing costs of your choices.

A4 is totally big enough for a 2 adult, 2 child family. P
Totally big enough for 4 adults.
When you have young kids, it's not enough to carry all of the gear.
Try squeezing a stroller and a few overnight bags for an out of town weekend trip.
Deal Expert
User avatar
Apr 21, 2004
54640 posts
19440 upvotes
vkizzle wrote: Totally big enough for 4 adults.
When you have young kids, it's not enough to carry all of the gear.
Try squeezing a stroller and a few overnight bags for an out of town weekend trip.
You sound like a Marketing Executive haha. Creating wants from thin air. ;)
Deal Addict
Aug 15, 2009
1473 posts
1154 upvotes
Montreal
vkizzle wrote: Totally big enough for 4 adults.
When you have young kids, it's not enough to carry all of the gear.
Try squeezing a stroller and a few overnight bags for an out of town weekend trip.
My parents always had tiny car and enough space for a week trip for 2 adults and 2 kids.

Today is no different. Only the marketing that creates the need for bigger things and to buy/bring things you don't need.

My point of view.
Deal Addict
User avatar
Feb 24, 2014
1172 posts
520 upvotes
davzhao wrote: Hey car deal experts,

My Audi A4 lease is coming to the end in next January. I’m trying to reason if I should return the car to dealer and get a bigger car, or just buy it out and sell after a few years.

My car is the 2016 progressive model, I have 80k KMs allowance for the lease term, but I only drove around 55k. Price for buyout after lease is 22k after tax, which seems to be a good deal according to prices on auto trader. The car has been reliable for the last 4 years, never had an issue with it.

I need a bigger when family grows, but the need is not urgent.

I know the decision here is really to buy my used Audi or buy a different new/used car? What do you suggest? I’m not so sure if I want to own an used Audi.

(Edit: 1. currently lease monthly price is $580 after tax. I don’t think I would not go beyond $650 if I were to get a new lease. 2. I got the car from Ontario, and now live in BC. Not sure if this would affect the resale value.)
As long as you haven't had any major issues with the car, I don't see any problem keeping the car long term. I used to own a 2012 Audi A4 2.0T which was also pretty much problem-free for the 100,000kms I drove the car. The major issues with the 2 litre turbo have mostly been resolved but included things like engine oil consumption. As one other poster pointed out, you've had an opportunity to gauze whether or not you bought a lemon, which doesn't appear to be the case. The only thing you need to be prepared for are maintenance costs outside of warranty which are expensive
Newbie
Jul 5, 2012
21 posts
73 upvotes
MISSISSAUGA
I would return it, the refresh model is out already and the 2020 is coming out soon.
realtor
[OP]
Newbie
Jan 16, 2016
59 posts
18 upvotes
Vancouver, BC
Psp2019 wrote: One of the upsides of a lease is that you get to suss out if your car’s a lemon. A 55km A4 where you know the service history and the history of gremlins is something you should consider as valuable. It’s intuitive that 2016 A4s you see on the market have *something* wrong with them more often than your own A4. After all, most people who drive a new German car did so via lease, so those that you see for sale on Kijiji etc were deemed by their owner not to be “worth it” from a long term perspective. Talking out of my *** on proportions of leases but I suspect I’m correct.)

Don’t think at all about the money you’ve spent on lease payments because it’s a sunk cost; you have zero equity in the car beyond whatever below-expected mileage it has. Whether you lease again or buy out, you’re not getting those dollars back (yes, you may get *something* for doing a new lease with the same dealer, but let’s be honest and admit that no dealer will go into the red for one repeat customer). Can you buy something better for $22,000? Unlikely, since maintenance history is very key and it happens to be something you have perfect knowledge of. You could lock yourself in for another 3-4 years on a new lease, but I personally would only do that if there was something wrong with my current car.

It’s important to forget everything about past payments and only consider—objectively—the current and ongoing costs of your choices.

A4 is totally big enough for a 2 adult, 2 child family. P
Thanks for the detailed answer. I think it makes sense for me to keep it. For the car size, it's just my lab is getting bigger and takes 2 seats in the back now (as i can't put him in the trunk), but now my family is only 2 adults + 1 dog so it works
Sr. Member
Feb 17, 2015
914 posts
1061 upvotes
Canada
you sound like an audi salesman Grinning Face With Smiling Eyes
Superman3 wrote: I would return it, the refresh model is out already and the 2020 is coming out soon.
[OP]
Newbie
Jan 16, 2016
59 posts
18 upvotes
Vancouver, BC
rsang39 wrote: As long as you haven't had any major issues with the car, I don't see any problem keeping the car long term. I used to own a 2012 Audi A4 2.0T which was also pretty much problem-free for the 100,000kms I drove the car. The major issues with the 2 litre turbo have mostly been resolved but included things like engine oil consumption. As one other poster pointed out, you've had an opportunity to gauze whether or not you bought a lemon, which doesn't appear to be the case. The only thing you need to be prepared for are maintenance costs outside of warranty which are expensive
Good to know, thanks.
Deal Addict
Jan 15, 2017
4009 posts
3481 upvotes
I agree with the earlier poster @Psp2019 when he stated to look at the lease payments as sunk costs. I would though expand on this comment and to look at your overall costs of ownership for this car. How much did you put down on the car? What fees did you pay? What was your total cost of your lease and when added now to the total cost to buy it out, you will arrive at the total cost to buy this car.
Deal Addict
Feb 17, 2017
1235 posts
1038 upvotes
Calgary
skeet50 wrote: I agree with the earlier poster @Psp2019 when he stated to look at the lease payments as sunk costs. I would though expand on this comment and to look at your overall costs of ownership for this car. How much did you put down on the car? What fees did you pay? What was your total cost of your lease and when added now to the total cost to buy it out, you will arrive at the total cost to buy this car.
Normally I'd agree you about lease being sunk money but when it comes to the German cars, I'm not sure I'd agree. They can lose upwards of 50% of their value in the first 3 years (depending on the model).
Deal Guru
User avatar
Jul 12, 2003
11653 posts
3955 upvotes
Toronto
davzhao wrote: Care to explain your reasoning?
What was your intention when you went lease this A4 in 2016. Were you thinking just to lease it and return the key and get the other one or you are thinking to lease and buy.
When I got mine and my wife's car, I have a clear intention of what I will do after the lease is up.

Most German aren't very reliable (yes, there are always some exceptions, not going to argue), maintenance and repairs are expensive on those cars. So most people who leased German cars won't buy it afterward. Even you mentioned yourself that you are not sure if you want to own a used Audi. The car is problem free now, that is what it suppose to be, it is only 3 yrs old with 55000km. who know if you drive another 15 or 20k KM further.
Plus, after 3-4 years, a lot of stuff are due to replace, brakes, tires, etc....

Versus, you can get a brand new car and start the clock from 0 (or close to).

Lease is not for everybody, a lot of people against the idea of a lease, it has a lot of cons which I also agree, but you already done one so you should have your reason to lease.

If you are saying you regret leased the A4, you should have financed a more reliable car and keep driving it for 8-10 years, then I will suggest you to skip buyback the A4, go buy a Lexus or a Toyota, then you are good.
Retired Forum Moderator February 2009 - June 2015
Deal Addict
Jan 12, 2008
1052 posts
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TDot
Are there any major mechanical problem areas for this generation A4?
Deal Guru
User avatar
Dec 2, 2008
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GTA
davzhao wrote: Hey car deal experts,

My Audi A4 lease is coming to the end in next January. I’m trying to reason if I should return the car to dealer and get a bigger car, or just buy it out and sell after a few years.

My car is the 2016 progressive model, I have 80k KMs allowance for the lease term, but I only drove around 55k. Price for buyout after lease is 22k after tax, which seems to be a good deal according to prices on auto trader. The car has been reliable for the last 4 years, never had an issue with it.

I need a bigger when family grows, but the need is not urgent.

I know the decision here is really to buy my used Audi or buy a different new/used car? What do you suggest? I’m not so sure if I want to own an used Audi.

(Edit: 1. currently lease monthly price is $580 after tax. I don’t think I would not go beyond $650 if I were to get a new lease. 2. I got the car from Ontario, and now live in BC. Not sure if this would affect the resale value.)
2.0T???? if so, dump and RUN

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