Lease ripoff ?

[lightninhopkins]

Anyone know if this makes sense?

Bought the R8 in April of 2008. For some stupid reason, I did a lease, and was going to pay it off in full within 6 months. Dealer's finance guy said it would be like financing the car, and any monthly payoff would just deduct form the total, as if I bought the car cash+tax.

Price of car was $135K at the time.

Total to date, including the down, I have paid out of pocket approx $155K (no CA state RAPE tax paid yet, which is another $10K). And my title shows car paid off, but state wont release title without double taxation of $10K.

Down: 10,000
Monthly leases 39,000
Payoff 105,000
===================
Grand total paid 154,000

And I still owe $10,000 more in tax, making it a total of $164,000. I could have just paid for the car+tax for a total of $148,000 free and clear title, instead of getting 9 cents per month interest from the bank. Trusting the dealer finance guy was a huge mistake.

Difference with $164,000 and $148,000 is $16,000

Does it make any sense that I've paid $16,000 in finance charges, with a credit score of 800+, for merely a year?

Something doesn't add up.

[R8Spyderman]

No sense, whatsoever. They saw you coming.

[porsche racer]

I don't know what residual they calculated. But with the price of 135K, residual of 45%, down 10K, assuming you did 36 months, your payment should have been around $2507.87. Am I missing something, because you said your payments were 39K, you mean you paid almost 1000 a month as a payment??
Anyhow, if you payoff a lease car the title will arrive with the company name i.e. (Audi leasing). Then you are required to register the car under your name. When you go register you pay the tax of the payoff amount.

[freshmeat]

What was your residual? Leases in general are rip-offs for end buyouts i.e. you always end up paying more than you would if you purchased instead...you're always better off buying it outright or just financing it. I hate debt, so my rule of thumb is if I can't pay it outright or get a finance term under 5% interest I don't buy the car period. Leasing is catered more for people who like to change their cars every 3-4 yrs.

[lightninhopkins]

I don't know what residual they calculated. But with the price of 135K, residual of 45%, down 10K, assuming you did 36 months, your payment should have been around $2507.87. Am I missing something, because you said your payments were 39K, you mean you paid almost 1000 a month as a payment??
Anyhow, if you payoff a lease car the title will arrive with the company name i.e. (Audi leasing). Then you are required to register the car under your name. When you go register you pay the tax of the payoff amount.

It was about $2400/month, so I guess it was 16 months of total payments before I paid it off, term was 60 months because I was planning on paying it off within 6 months. It was with Chase Auto Finance. Like I said, I had the cash to buy it outright, but I don't know why I didn't. Dealer guy said it'll be the same if you pay it off quick.

Can't trust anyone.

[freshmeat]

Yep, never trust sales people esp. without due diligence, lesson learned. Do you remember your money factor?