I have actually done this a few times as well. Especially when I am going to be moving out of the area or I am coming to the end of a work contract.

Just remember to confirm the condition so that you don't get burned at turn in.

Also BMW/Mercedes have some crazy leases where they pump up the residual, knock some money off the price of the car and set the money factor at effectively 0%.

Still going to be three years though.

 

I was hoping a little bump would prompt a few more replies to this!

I'm curious to learn more about this credit union car buying service Jeff_NJ. The few I was able to just find online had pretty weak inventory but you mentioned the one you work with acquiring/sourcing cars for you?

 

It is my credit union and they have a car buying service. They do not stock any cars. I would go to them and tell them what I want and they go to their dealer for that brand that they have a relationship with and get a far better price than I could ever get because they buy so many cars. The dealers are fighting to get their business because of the volume. It is win/win for everyone. Here is my credit union website, but they are based here in NJ, so I don't think you can use them, but maybe there is something similar near you? Auto Resource Center :: Affinity Federal Credit Union

**disclaimer - I am simply a member of the credit union and have no financial interest in them at all.

 

Go to one of the lease-swapping sites, and find someone in the middle of a 3-4 year lease. That way, you're biting off a shorter time, but paying more like the monthly price of a longer (and thus, cheaper) lease. The downside is that you won't have a *new* car, but it should be in pretty good condition. The upside is that when people are trying to get out of a lease, it's often because of financial pressures, and they're keen to make a deal. It usually takes a while to get the paperwork to go through, but if you're patient, that's the way to feed your fix, but let someone else buy the first couple of year's worth of depreciation.

 

Leasing for 24 months or less is quite the luxury, as you are effectively paying for the highest depreciation bracket ever year. (steepest slope of the graph).



When evaluating MSD's, you should compare the lease % vs what rate of return you can achieve with that capital. It is false to assume it lowers your net payment unless you earn 0% on your investments. Its basically just a marketing tool.

I purchased my current car and leased the 3 previous ones and got out of each before the end of the term (twice with positive CF as the deals i had were great). When purchasing a new car i will always evaluate both options and make a decision based on a financial analysis.

 

Thanks again for the replies everyone.

I checked out some of the possibilities of getting out of my current lease early this past weekend. It's not looking like it will work at this point but in the process I got to drive this pretty sweet Avus RS4.

I've always loved the RS4. I really hope they end up bringing the rumored RS3 sedan that is similar to the old B5 size stateside in a couple years.

Anyway, my wife really enjoys the Tig so we'll most like hang on to it. I can suck it up for another 710 days right...

Depending on if we move when the kiddo comes along this fall, I may pick up a second car. Only one parking spot downtown makes that impossible right now!