# 36 month vs. 48 month lease



## hawc (Oct 24, 2001)

First off, let me start by saying this is NOT about leasing versus financing. This is just a leasing question. So please no financing stuff. 
The question is, what factors should I take into consideration when trying to decide between a 36 month lease versus a 48 month lease. I can't decide if there's a financial advantage to one over the other, or whether it really just comes down to how long I want to keep the car. 
I was planning on doing a 36 month lease with 0 down (or as little as the dealer will allow me to put down) on a new B7 A4. I'll probably end up spending about $2,000 on upgrades to the car (even though it's leased) in terms of aftermarket rims and tires. I know you shouldn't put any money into a leased car but I'm definitely doing the rims and tires. 
Any advice much appreciated.


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## hawc (Oct 24, 2001)

*Re: 36 month vs. 48 month lease (hawc)*

anyone?


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## VeeDubDriver (Oct 1, 2001)

*Re: 36 month vs. 48 month lease (hawc)*

Deciding between 36, 39, 42 and 48 months is dependant on a few things.
First, how long do you want the car for? Most people start to get sick of their cars after 36 months and begin to itch for a change. This is less of a problem with higher-line cars, like the A4, since they tend not to leave you for wanting something else, so not a problem.
Second, warranty coverage. Since you don't want to lease past the warranty period, you are generally locked into the term of the warranty. In the case of Audi, that is 4 years, so not a problem.
Third, payment. While 48 months will usually give you a lower payment than 36-42, the difference may not be substantial enough to warrant the longer term.
Fourth, up-front costs. Every time you lease, you have to pay for things like the acquisition fee all over again, so decide how often you want to do that.
Fifth, maintenance. After three years, most cars tend to start needing things like tires (probably a second set), more expensive services, batteries, etc. Now, Audi covers everything except the tires. However, a new set of tires, divided by your number of payments (say 48) can add enough to your payments to negate the lower payment you got vs. a 36 month lease. So keep that in mind.
I ended up leasing my A4 for 42 months since it put me at the payment I wanted and I knew I would be happy with the car for that long.


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## TRegKnowItAll (Oct 2, 2003)

*Re: 36 month vs. 48 month lease (hawc)*

Personally I always suggest shorter terms to my clients. As mentioned above, the itch usually sets in around the 3rd year, and even then you probably cannot get out of the lease without it costing you money.
Audi right now has the residual set so high on the 24 month lease, it almost seems silly to go any longer as the payment usually goes up
rather then down.


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## hawc (Oct 24, 2001)

*Re: 36 month vs. 48 month lease (VeeDubDriver)*

First off thanks VeeDubDriver for taking the time to answer the question in so much detail.








Secondly, can you explain this part more to me, perhaps with _actual numbers_ as an example. 


_Quote, originally posted by *VeeDubDriver* »_While 48 months will usually give you a lower payment than 36-42, the difference may not be substantial enough to warrant the longer term.


I'm not sure how to calculate whether it may be better mathmatically better to go 42 or 48 vs 36. Wouldn't you always end up spending more money in the end if you go more months?


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## VeeDubDriver (Oct 1, 2001)

*Re: 36 month vs. 48 month lease (hawc)*

Most people tend to shop monthly payment, not total amount paid, especially in a lease. Someone might think it worth a longer term if their montly payment is not as high.
Say a 36 month payment was $500/mo, 39 months was $490, 42 was $475 and 48 was $450. Which term would you go with?
Now, say the numbers were $500, $495, $490, $485 respectively. Would you make the same choice?
There is no one right answer, is just depends on whether leasing X number of months longer is worth saving Y dollars per month.


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## hawc (Oct 24, 2001)

*Re: 36 month vs. 48 month lease (VeeDubDriver)*

Interesting. 
So with a 36 month lease, for example, your total is only $18,000 vs $21,600 for a 48 month lease. But you're right if you're shopping monthly payments only then the 48 month lease does look more attractive. 
I don't think i'll necessarily get bored of the new 2.0T in 36 months but I don't want to be lokced in either if I did get bored (or let's say the new TT got released and I really wanted that.)


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## VeeDubDriver (Oct 1, 2001)

*Re: 36 month vs. 48 month lease (hawc)*

Another factor to consider is life changes. Are you going to be changing jobs, doing more driving, getting married, moving, starting a family, etc?
The longer you have a lease, the better chance on the these factors may change.
When I leased my car, I hadn't really considered starting a family. Well, that has changed and my wife and I are excitedly awaiting our first child. However, the earliest one of our two leases will be up will be a year after the baby is born. If for some reason our two cars are not child compatible (due to small truck or other reasons) we won't be able to make a change until that time.
On a side note, because we are starting a family, I am now looking at vehicles that I had never considered before (like the A3 Sportback and B6 Passat Wagon), which is actually pretty exciting.


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## hawc (Oct 24, 2001)

*Re: 36 month vs. 48 month lease (hawc)*

Okay, well no kids for me for sure in the next four years (single, no girlfriend







) 
But I think what I'm taking away from this is as a general rule of thumb, if i'm not sure how long a lease i want, whether i'll love the car, or where i'll be in four years, it's probably better to go shorter rather then longer. I'll probably try and go 42 months like you. 

(on a side note, you ever read about these people who do 72 month leases on personal computers!!! i mean by the time you even have it a 3rd of the way paid off, it's wildly out of date. )


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## not_too_shabby (Apr 30, 2001)

*Re: 36 month vs. 48 month lease (hawc)*

Don't forget brakes as well. Our Saab lease is up in 2 months and our brakes are getting pretty low. Another year and we would have to pony up the dough for brakes and tires as well. Paying for those two expenses would probably eat up most of the savings in payment between a 3 and 4 year lease. Some manufacturers include brakes in the "free" maintenance like BMW and audi, but not all.


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## sieben (Nov 23, 2002)

*Re: 36 month vs. 48 month lease (VeeDubDriver)*


_Quote, originally posted by *VeeDubDriver* »_Second, warranty coverage. Since you don't want to lease past the warranty period, you are generally locked into the term of the warranty. In the case of Audi, that is 4 years, so not a problem.


all of your points are excellent, but I think this is the biggest one, especially with an audi
I'd NEVER want to have a leased car run out of warranty and then have to replace something big just before the returning the car.


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