Tips for trading in a lease at a stealership??

[S4DISTIC]

Hey guys!
I relapsed and pulled over at a stealership to check out the Tacoma TRD TX's...I used to have a SR5 (got my current S4 as the immediete vehicle after the Tacoma) and loved it. Love not having to worry about curbs, go off road, throw crap in the back...etc etc (duh it's a truck, it serves a different purpose). Keep in mind I might just go TRD, which is only 5k less, so could go either way.

I know there is semantics and questions as to why I want to go to a different vehicle (to be honest, interior of a Taco is complete garbage compared to a Audi for example), but I don't want to discuss that here. I want to discuss what I should be aware of, how to answer right back to a dealer if he's shooting BS my way and get the best deal...I'm seeking advice from those whom are willing to give. For example, I found that if I ordered a Tacoma from the factory, there is a $650 incentive...what a great thing to tell a sales guy to entice him to give me maybe $200 off because of that...(every bit helps, but this example helps to prove my point).

So here's my situation.

My lease is up in a year and I'm not in a rush to get something now, but don't feel all that comfortable throwing money out the window when I know I will be facing this problem again in 12 months, and with more cash out the window into the lease and a depreciated vehicle, compared to today...and not to mention the risk of crashing or putting on further wear and tear that could reduce the value beyond normal depreciation.

The Tacoma I am looking at will be about the exact same price as my payoff WITH the taxes included, in a year when the lease is over.

Soooooo....with that said, I talked to the dealership and told them...make me want to leave my Audi and get in a Tacoma (and I'll be financing maybe about 15-20k of it).

A couple of days ago when I said this, I took a Taco out for a test drive and came back. Sat down and asked them to show me hypotheticals of how much down would give me this monthly payment, blah blah blah (they're doing 84 month financing, w/ a higher % rate...but 84 months?! ).

A day later, they offered me $1000 more than what they told me at the dealership for my Audi.

So they're offering me $42,000 for my 2012 P+ Audi. It has 16k miles on it, and like I said I've had it for 22 months.
The MSRP + goodies on the Taco I was looking at was $39500.
My payoff of the Audi is $39500 with the sales tax added ($3500 for sales tax).

What should I be aware of what I'm bringing to the table and what should I tell them they should reasonably consier?


A HUUUUUUUUUUGE thank you to any/all who have contributed, as I have been afforded the luxury of thinking this out and want to just look at feasibility at this point. Thanks guys! (P.S....ain't a god damn thing wrong with the S4, it's the best luxury car I've ever owned).

[b6bydesign04]

Interested in responses as I'm in a similar situation...

[Dr GP]

So the dealer is giving you $42K for your S4 and the AFS payoff is S39.5 with sales tax. You may not have sales tax involved since dealer can buy car without paying sales tax in most states. The dealer needs to contact AFS and find out at what price they will sell the dealer the car. The dealer then pays off the cost and takes possession of your Audi. It should be the same amount as what your payoff is. Whatever the difference between what the dealer can buy the car for and $42K is yours. You can put it in your pocket or apply it to the purchase of your new truck. You will pay sales tax on the new Tacoma on the difference between the trade in and the cost of the Tacoma. But that can vary among different states. Simple as that. Actually easier to do with an Audi/VW dealer, but can be done with any dealer. Doing the same with my 2010. Trading it in on a new 2014 6 weeks prior to lease end. Dealer is buying my car and giving me $5k plus $1k in Audi loyalty incentive. I can put the $5k in my pocket or use it to lower the lease payment.

[S4DISTIC]

So the dealer is giving you $42K for your S4 and the AFS payoff is S39.5 with sales tax. You may not have sales tax involved since dealer can buy car without paying sales tax in most states. The dealer needs to contact AFS and find out at what price they will sell the dealer the car. The dealer then pays off the cost and takes possession of your Audi. It should be the same amount as what your payoff is. Whatever the difference between what the dealer can buy the car for and $42K is yours. You can put it in your pocket or apply it to the purchase of your new truck. You will pay sales tax on the new Tacoma on the difference between the trade in and the cost of the Tacoma. But that can vary among different states. Simple as that. Actually easier to do with an Audi/VW dealer, but can be done with any dealer. Doing the same with my 2010. Trading it in on a new 2014 6 weeks prior to lease end. Dealer is buying my car and giving me $5k plus $1k in Audi loyalty incentive. I can put the $5k in my pocket or use it to lower the lease payment.

To clarify what you wrote and what one of the questions I have had is this.

Dealer says they'll give me $42k for car. At one point I walked into the same Audi dealer I got the car from and they said if I gave them back the car, they'd give me $3500 in cash (the sales tax amount).

So kinda getting that offer (which I'm sure was a low ball) makes me want to believe if I walk in to the Toyota dealer and gave them the car, I would be due a $3500 credit, plus added value they give me to help incentive "ize" the deal for them? I realize it would go towards the new cost of the new truck.

However I am aware that the way a dealer can phrase things or trick someone, you could potentially get hosed and I don't want that if I do this, as it's a pretty quick decision and don't want any regrets on small wordings, but huge misses on my part on the deal.

Would it be crazy for me to call the Audi dealer I got my car from and told them I want to turn it in early and tell them the exact car I want? I know that'd be like asking a apple vendor for a watermelon, but just a question, as it all comes down to money.

Thank you for your reply!

[Dr Chill]

Your lease buyout is $39,500 which breaks down to $36000 plus $3500 tax (crazy 9.8% state and local use tax rate in state of Washington). The dealer cost to buy your car out of the lease is $36,000. If they agreed on $42,000 value, then they will give you $6000 cash. You can then use this cash as a down payment on your new car purchase or lease. The dealer will not be able to use the $42000 to offset the tax burden on the new car since you don't actually own the Audi, AFS does.

Audi dealer you bought the car from basically offered you $39,500 to buy your car. They pay AFS $36,000 and the balance would go to you.