Does Lease Buyout Make Sense? 2018 Audi Q5

Do you like the latest and greatest?

Getting into a new car will always be more expensive as each model year will be about $500 or so higher than the previous + outlay fees of another $3000 (ball park).

#2 or 3 depending your personal choice.

I wouldn't pay almost 40k after tax and fee to buy it back.

Have you had any problems with it so far? German cars tend to have a reputation of being unreliable and becoming money pits as they age... Consider the cost of maintenance and repairs moving forward on an aging German vehicle depending on how long you plan on keeping it. Depreciation could also be something to think about since luxury cars tend to depreciate much more quickly compared other brands.

My take on this is if you’re gonna be financing and have monthly payments on the residual, you’re going to have monthly payments still so it doesn’t really help with cash flow. Meanwhile you’re paying off a loan on a car that is only going to get older and less reliable. Given that it’s an Audi, repairs and maintenance costs will only go up. No warranty is also a factor and once you’re done paying off the residual in a few years, you’re likely going to be thinking of a new car again.

Of course it’s going to cost a little more if you’re going to be leasing a new car every couple of years but this is really based on your personal finance and cash flow so it’s hard to say what is better.

Go for the new one, you will still pay thousands $$$ in repairs once that car notoriously starts to break down, new cars don't break down even when they're from an unreliable car maker such as Audi.

Also, I don't get why such a short lease for OP. 2008 and now is 2020, probably 24 months lease?
You know the shorter the period of lease, the larger the residual value and more monthly lease payments.

Should lease it for 4 years or just under whatever the manufacture warranty period.

Unless for some people that always want to drive a brand new car every 2 yrs, but then you said you considering buying it, so I don't think you are the type of person.

Lease a new one. Im sure you leased it for 2 years so you can get into another car.

1) you will be paying $1100 per month for 36 months and at the end you will have some that's worth $20k. Of 36, 24 of those months are without warranty unless you pay another $2-$3k for coverage.

So your cash flow got worse and if nothing goes wrong and you are able to sell it at 6 years old for $20k, you are basically paying around $700/meth for 36 mths.

2 years lease. You still have some brakes and tires life left. Nothing drastically changed in 2020 Q5. If I remembered Audi touch MMI hasn't made it to the Q5 yet. But even so, don't think it's worth trading a car for.

I'd say buy it back. Unless there's something else on the market that tickles your fancy as there are tons of competing models out there currently.

Keep in mind the difference between new and used

As someone mentioned, you would refinance for next 36 months at a cost of $700 a month. For a car that starts 2 years old and ends up 5 years old (no warranty in final year)

You were paying $835 a month for the latest and greatest, brand new car. Full warranty all the way through.

In that case I’d just go lease a new one again. For $100 or so a month why even keep yours?

And if you are on a 2 yr lease, look at a 3yr one. Then the comparison above is more apples to apples. And 3 years is still under warranty yet monthly cost is even lower


This all assumes your lease was $0 down though.

In any case, don’t keep the old one for almost the same price as just getting a brand new 2020 model!!

I'd roll those payments right into a brand new one.

Ditch the old lease and go with a totally brand new Q8.

If you like the car, and it's been good to you (not many repairs/problems), and the price is right (sounds like it is), I would buy it.

That's my plan when I try my first European car anyways. Lease first, then buy if I like it. The repair cost/reliability aspect especially.

Other options...
Read other rfd threads and determine a way not to spend what appears to be $15K per year on a car. I like nice things but wow. Talk about warranty and repairs is mute if you can truly afford that.

Thanks, reading all these comments,... it was a 36 month lease.

OP two important questions are:
1) Do you enjoy driving/owning the car
2) Will you see yourself enjoying it in 5-6 years from now?

Your model year Q5 is fairly reliable and given that it is the newest generation, its fairly likely you'll be able to go another 4-5 years without any major changes. From a financial perspective, you shouldn't bother trading in the car and dumping another $30,000 down the drain on a new lease. I'd just keep it, and drive it for another few years. Especially if the car is still in good condition and you haven't had any issues.

rsang39 wrote: ↑ OP two important questions are:
1) Do you enjoy driving/owning the car
2) Will you see yourself enjoying it in 5-6 years from now?

Your model year Q5 is fairly reliable and given that it is the newest generation, its fairly likely you'll be able to go another 4-5 years without any major changes. From a financial perspective, you shouldn't bother trading in the car and dumping another $30,000 down the drain on a new lease. I'd just keep it, and drive it for another few years. Especially if the car is still in good condition and you haven't had any issues.

No issues as of yet. Likely need new tires soon. It is up to date on maintenance, the next maintenance is due in 1800KMs.

I do really like the vehicle yes. This is my third Audi and I've never had an issues, but I've never kept over 5 years.

booblehead wrote: ↑Do you like the latest and greatest?

Getting into a new car will always be more expensive as each model year will be about $500 or so higher than the previous + outlay fees of another $3000 (ball park).

Yes, I do.

MusicBox wrote: ↑Go for the new one, you will still pay thousands $$$ in repairs once that car notoriously starts to break down, new cars don't break down even when they're from an unreliable car maker such as Audi.

In fairness, this is my third audi and I've never had an issue. Really the best cars I've ever owned, but I've never owned beyond the 5 year mark.

BHA1 wrote: ↑Keep in mind the difference between new and used

As someone mentioned, you would refinance for next 36 months at a cost of $700 a month. For a car that starts 2 years old and ends up 5 years old (no warranty in final year)

You were paying $835 a month for the latest and greatest, brand new car. Full warranty all the way through.

In that case I’d just go lease a new one again. For $100 or so a month why even keep yours?

And if you are on a 2 yr lease, look at a 3yr one. Then the comparison above is more apples to apples. And 3 years is still under warranty yet monthly cost is even lower

This all assumes your lease was $0 down though.

In any case, don’t keep the old one for almost the same price as just getting a brand new 2020 model!!

Old lease was. The dealer can basically put me into a new one for practically the same price.

Sounds like you have answered to your own question