MMM430

Ladies and Gentlemen,

I'm positing this topic in our W208/W209 forum b/c I've come to know a few of you and overall I value your opinions on a wide variety of topics. It's our first lease so I am doing whatever research I can to assure we do the right thing......so, we need your advise.

My wife and I are leasing a 2007 Audi A4 2.0T. End of lease is 08/01/2010.

The car is nearly loaded (every option avail except navigation & S-Type Pkg Appearance Pkg.) and is several (roughly 13K) miles under our lease allowance.

Looking at fair market value which is significantly more than the residual on the lease (approx. $4500 more), I believe we may be in a good spot. We are looking to possibly sell it, take the difference between the FMV and the residual and use that as a down payment on another vehicle. Or possibly negotiating the buyout down even further, buying it from Audi Financial then selling it for the FMV or as close as we can for a greater windfall.

Would love your thoughts and input! Below are all the details and info from the sticker.

Thank you all for your knowledge!

- MMM430

Here are the vitals:

2007 Audi A4 2.0T

Condition: Minor scratch on trunk lid. Excellent condition inside/out and mechanically. Garaged. Non Smoker. Very Clean. Scheduled service only by Audi dealership.

Lease ends Aug 01, 2010

Mileage Allowance: 12,000 / yr.

Mileage at delivery: 1000

Current Mileage: 24,343

Sticker Price: $34,485

Residual / Purchase Option: $18,621.90

Vehicle Options: This vehicle is equipped with every option available w/ exception of navigation & S-Type Pkg. Does have the nicer 18" Double spoke rims. The list below is an accurate list of all options included!


Optional Packages
Audio Pkg
$1,000

Cold Weather Pkg
$775

Convenience Pkg
$2,100

Premium Pkg
$800

Chappy

The first thing I would do is to go to Carmax. You'll get a real/cash offer on the trade value. It may be low, but at least you know where your "floor" is.

Are you interested in keeping the vehicle? If not, you should consider trading it - since there me be a sales tax advantage on the trade equity.

The last thing I would do is buy it then try to sell it on my own with only a few thousand dollar spread.($4500 at most).

Also, check your lease contract - there may be lease turn in, termination, damage or other fees rolled in there - that could whittle down any potential profit as well.

Good luck!

vegas55amg

Ditto the CARMAX idea. they will give you a real world price local to your area. no hassles either. just tell them you own the car and would like a purchase offer from them. I've found that CARMAX basically tries to sell a car for roughly 15%-20% more than they offer, this way you get a very good real world idea what your car is actually worth. they are very fair, as they do have a cost for doing business, etc, and their prices seem to be fair.

when I was selling my wife's 2001 Infinity QX4 back in 2004, I saw several similar cars on their lot, selling for about 20k - 22. they offered me $17,900.

after trying to sell it myself unsuccessfully for a couple of weeks, I took it back to them and they honored their offer (even though technically it's only good for 7 days).



you have to remember, you will most likely NOT be able to sell for the same price as a dealership (unless it is a rare car, like an older sports car). People who buy from private individuals know you don't have the overhead and need of making a profit, and they expect to pay thousands less buying from you, than from a dealer. you also have to deal with the headaches of joyriders looking for test drives, and people throwing low-ball offers at you hoping you are desparate to sell. it's not worth the hassle generally (again, there are exceptions, I sold 2 older Japanese sports cars myself, and got thousands more than I would have from a dealer as they were "enthusiast" cars - a 1999 Mitsubishi 3000GT VR4 and a 1994 Toyota MR2 Turbo).

so basically the CARMAX offer they give you, is pretty close to what you will actually be able to sell the car for, or only a thousand or two less (but you will have to put lots more effort into getting that bit more). plus you don't have to worry about people giving you a counterfeit "cashier's check" (more common than people realize), or a buyer having a mechanical problem 2 months after buying it and calling you and bit##ing about it. I accepted cash only when I sold my MR2, as I had a clear title in hand, and was signing over the title immediately.

So knowing the "real world" value of your car, you can decide if you'd like to pursue the lease buy-out option.

hope this helps!

MMM430

Thanks guys! It helps quite a bit. CARMAX will be step #1 for sure. the info I get from them will dictate the road I take.

1) Sell to CARMAX and hopefully come away with some $$
2) Buy from Audi Financial if I can neg the Residual even lower then turnaround and sell it to Carmax and hopefully come away with more $$ in hand.

As for keeping the car....we are looking to move into an SUV. Have some test driving to do but it's likely to be a preowned ML, X5 or possibly leasing a Q5 or RX350.

Thanks again for the info guys!

Chappy

Hope it works out for you. BTW, the RX is a great kid-friendly car!