PJStyles

Need some serious and unbias feedback on this. I began leasing a 2003 Audi A4 1.8T Quattro fully loaded 5 months ago and put $12,500 downpayment and my payments for the 4 years are $403/mth taxes included.

Fast-forward 5 months into the lease and I find out that my situation has changed drastically, not just from a career standpoint but family standpoint too.. I'm married with a child and looks like we may have another one on the way...

My question is simple... I have someone who is interested in taking over the lease of the car by paying me $7,000 cash. In other words, I give them the car, they make the remaining payments and I walk away with $7,000 which means in 5 months I lose $5,500!

However, I can do a purchase finance deal with Mazda for a new 2004 Mazda 3 w/GFX Package GT Auto Tranny for $405/mth taxes included over 5 years.

Financially, what would you guys do? I'm looking to get as much feedback on this as possible. On the one hand, with the Audi, I wouldn't pay for any maintenance/tune-ups in the first 4 years, not even oil changes... with Mazda I would. However, after 4 years with the Audi, the residual value is $18,425 + Taxes. At least with the Mazda, after 5 years the car is paid for and I own it.

I'm looking for as much honest and unbias feedback as possible...

Thanks,

PJStyles

99Silverbullet

It seems to me that your payment will still be the same. So why not drive a nicer car!

Are you keeping the 7,000 or using as a downpayment on the 3?

It seems to me that it would be cheaper than 5K to break the lease. Or get a loan, buy out the lease and sell the car to a private party for around 30K. Then buy a <20K Mazda 3 and keep whats left over.

I am looking at it this way. Even if you keep the A4 till the end of the lease you could buy the car, or get another car. In 5 years the Mazda 3 will be worth <5K if you purchase it and put 15K miles a year on it anyway so either way you are not getting much in the end in either deal.

Also...I don't get why you would have to put 12.5K down on a lease. Did someone forget the KY?

99Silverbullet

Also I just did the math on your lease.

48 X $403 = $19,344
Down Payment = 12,500
Total 31,844

You could own the car for that price......NOT LEASE IT!

macdaddyslomo

keep in mind he is in canada, so no you cant get an Audi A4 Quattro for that. Here is a question though...if your situation has changed then how does a car payment going UP $2 help you ?? I dont see where the 3 will serve you any better than the Audi..not trying to turn you away from mazda, since they are great cars...and i would hope you could take the $7K and lower that pmt

99Silverbullet

Sorry, I thought we were talking U.S. dollars. You can get a deck out A4 for low 30's with some haggling here in the states.

I also don't see how $2 a month will make much difference.

Plus the A4 is safer for the bambinos. Better Crash Test and has rear side curtain air bags. Better in the snow with the AWD. Doesn't really stop any faster, but if I had a choice which car to be in when I had an acident it would be the Audi!!!

My Wife's Passat is pretty much the same car as the A4. Same engine same suspension just with only front wheel drive and an Auto. We love ours. I say keep the Audi.

If you are really trying to same money and want a good family car get a used 2000+ Tarus or a Mazda 6.

AVI 3speed

Keep the Audi until the lease is over or sell it privately. Don't walk away for 5K just because the Mazda is a nice looking car.

agarven

I am in a similar situation and also live in Canada...although my lease is not as new as yours. I own a loaded 2002 Honda civc with 21/48 months remaining on the lease. I went to a Mazda dealer to see if I could get out of the lease and buy a loaded Mazda3 GT with leather and they said I would have to pay them about $2000 to get rid of the Honda. The lease payout was $15,888 at present and they were going to give me about $11,500...but there is also taxable savings on the purchase of the new car hence only the $2000 difference. Nevertheless, a 2002 civic with 40,00km on it is worth more than $11,500CDN in my opinion. I am going to try to sell the car privately for around what the buyout is and then get the Mazda. I suggest you do the same since the dealer will almost always rip you off when buying your current car since it goes to a wholesaler.

Mastermis

well, almost. (I am in Mtl)

I went from a 2001 A4 1.8T (lease 1/2 over) to a pre-owned 2002 Protege5 for similar (family) reasons.

Here is how I got out of this quite well :

1) Sold the A4 privately. Since my lease was 1/2 over, I did quite well here. Also, it was a 5-speed with rare color. Do not trade in your car under any circumstances. You should find a buyer easily (in case your potential buyer opts out) for this car.

2) Here is where I did the best : I bought a 1 1/2 year old Protege5. I got the P5 for about 25% off the original sales price. In Quebec, when buying from an individual, you only pay 1 tax (7.5%, no GST) Not to mention the P5 came with a tint, performance muffler and winter tires/rimes. I would image its the same thing for Ontario.

So if you can find a pre-owned (maybe even a Demo) Mazda3 you might get a better deal since you are loosing 5k on the Audi ; which BTW seems quite normal since that car will take a 15-20% hit on the 1st year.

Oh yeah ... the move is not easy. I really like the P5, but I really miss Quattro, especially with the nasty winter we are having so far. But, look at it this way : easier on gas (regular ...), easier on insurance and dealer service, although not as good as Audi, is more than acceptable. The maintenance included with the Audi was great, but so far (10 months), the regular maintenance on the P5 has been really cheap.

Email me micho@yahoo.com if you want any more info. Hope this helped.

M.