[Steve Carlton]

There's nothing wrong with leasing, whether you buy the car at the end or not. All this being "upside down" is simply a result of not paying down the principal balance as much as you generally do with a purchase. The car's worth the same regardless of how it was financed; the payoff is a result of how much you've put in along the way.

With a lease, you pay the tax monthly with each payment (and on any cap reduction = down payment), so if you get out early, you're ahead of the game. Leasing usually has an acquistion fee which isn't there on purchasing, a disadvantage. Leasing has a guaranteed way out via returning it to the lender; purchasing does not. You can always sell the car yourself and payoff the lease, which can be better than returning the car.

One thing to compare is the rates. For example, I believe US Bank has a lease factor of 0.00202 right now (which is outstanding). That is commonly expressed as "2.02." You can estimate the approximate equivalent interest rate by multiplying by 2.4 (or 2400 if the rate is quoted precisely). So, the US Bank rate is about 4.85%. I don't think you'll see an open-market rate as low as that, but you might see a factory-sponsored rate lower than that. For example, my brother leased an S2000 through American Honda Finance with a rate factor of 0.00059 = 1.4%. So, compare your credit union rate to the lease rate. Check to see if there's a low APR or rebate offered by VW/Audi. Also, dealers typically markup the "buy rate," or their cost on the money. Ask them what the buy rate is, and how much over/under invoice for the car if leased at the buy rate. You'll have lower payments if they charge you a little more for the car without marking up the lease factor.