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Audi A4 Lease Questions

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  • Hey skenterprises. The first problem is that you never mentioned what model year Audi A4 you are interested in. I assumed that you wanted a 2005 A4, but you apparently want a 2006 model. This will make a big difference in its lease payment. Let's calculate a lease payment on the 2006 version of this car and see what we come up with. According to my calculations, if you were to lease a 2006 Audi A4 2.0T Sedan 2WD with an MSRP of $37,430 including destination and a selling price of $36,000 through Audi Financial Services right now for 36 months with 15,000 miles per year, your zero down, pre-tax monthly payment should be around $471.

    Car_man
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  • Hello Christin. whoever told you that you really can't negotiate leases was dead wrong. The selling prices of leased vehicles can be negotiated just as if you were paying cash or financing. You never mentioned the selling price of the cars that you are interested in leasing. These are important numbers for you as a consumer to know. Without knowing the price of the cars that you want to lease you don't know how good a price you are getting them for. Also, vehicles' selling prices are necessary to calculate their lease payments. I would be more than happy to work up a sample lease payments on the cars that you are interested in for you if you let me know what their selling price are.

    Car_man
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  • Welcome vinayg1. Since you are new to the world of leasing, you definitely should check out the following informative articles that are available here at Edmunds.com prior to visiting any dealers: 10 Steps to Leasing a New Car and Calculate Your Own Lease Payment.

    Individual dealers have nothing to gain when they are evaluating the condition of your vehicle at lease-end. Any excess mileage or excess wear and tear fees that they assess go straight to the bank that you were leasing your vehicle through. Many banks have switched from using dealers to evaluate vehicles' lease-end condition to using independent inspection companies anyhow. The exact guidelines that are used to determine what is excess wear and tear vary from bank to bank. In general though, most banks will not charge an excess wear penalty for a scratch or a ding that is smaller than the size of an ordinary credit card.

    Car_man
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  • I am glad to see that you have learned a lot from reading this discussion, cluelessinla. I would be happy to give you my opinion on the selling price that you were quoted for this car, but it would be a big help if you would tell me what its full MSRP (with the destination charge added in) is. This number will enable me to see what sort of a discount you are being given on it and will enable me to calculate a lease payment on it for you using Audi Financial Services' actual lease program if you would like.

    Something is not right about the lease money factor that you were quoted for this car though. Audi Financial Services' current buy rate lease money factor for a 36 month lease of a 2006 A4 3.2 Quattro Sedan should be only .00220. Are you having your car's security deposit or AFS' lease acquisition fee waived? If so, this might account for the difference in money factors. If not, the dealer that you are working with may be trying to mark-up your car's factor to add additional back-end profit to your deal.

    Your vehicle's capitalized cost will include any tax or state fees if you want to add them in. If not, you can pay them at lease signing.

    Car_man
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  • I would be happy to provide you with the money factor and residual value that are being used to arrive at Audi's advertised lease payment for this car, jblaze13. If you were to lease a 2006 Audi A4 2.0T Sedan with quattro through Audi Financial Services right now for 24 months with 10,000 miles per year, its buy rate lease money factor and residual value should be .00139 and an outstanding 76%, respectively. The residual value for an otherwise identical lease with 12,000 miles per year would drop to 75%. Manufacturers' advertised lease payments usually don't cut deals completely to the bone. If you comparison shop with a few dealers in your area, there is a decent chance that you will be able to beat this deal by a little.

    Car_man
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  • Hey vinayg1. So you want to know what the 24 month, 10,000 mile per year lease payment for a lease of a 2006 Audi A4 2.0T Sedan with quattro with an MSRP of $35,310 and a selling price of $34,000 should be like. I come up with $384. It is possible that Audi's advertised lease payment for this car in your area is based upon a lower selling price than this.

    Car_man
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  • Congratulations on your new car schweikb. I would be happy to give you my opinion of this deal, however you never mentioned the selling price of your car is. This is an important number for you as a consumer to know for two reasons. First, the selling prices of leased vehicles can be negotiated, just as if you were paying cash for them. Without knowing the price of the car that you want to lease you don't know how good a price you are getting it for. The second reason is that one needs the selling price of a vehicle that they want to lease is that it is necessary to calculate its lease payment.

    Car_man
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  • You're very welcome pablos. I am glad that you enjoy this discussion so much. Audi Financial Services' current 24 month buy rate lease money factor for the 2006 A4 2.0T quattro sedan is .00139. Unless you are having your car's security deposit or AFS lease acquisition fee waived, the dealer that you are working with is marking up your car's base money factor to add a little additional back-end profit to your deal. While this sort of thing is perfectly legal, it can often be avoided by consumers who know what their car's buy rate money factor is by calling out the dealer that they are working with or shopping around.

    the other negotiable aspect of your deal is your car's selling price. It looks as though you are being given around a $1,650 discount off of this car's MSRP. This sounds like a reasonable discount to me, but I am not intimately familiar with what the market is like for the 2006 Audi A4 right now. You may want to stop by the following discussion to see how much other community members have paid for similar vehicles recently: "Audi A4: Prices Paid & Buying Experience".

    Car_man
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  • Congratulations on your new car, chimay. Thanks for taking the time to share the details of your deal with everyone :D.

    Car_man
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  • Greetings Chips. You never mentioned the selling price or MSRP of the car that you are interested in leasing. These are important numbers for you as a consumer to know for two reasons. First, the selling prices of leased vehicles can be negotiated, just as if you were paying cash for them. Without knowing this car's selling price in relation to its MSRP you don't know how much of a discount you are getting on it. The second reason is that one needs the selling price and MSRP, including the destination charge, of a vehicle to calculate its lease payment. I would be more than happy to give you my opinion on this deal and to work up a sample lease payment on the car that you are interested in for you if you let me know what these numbers are.

    Car_man
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  • Hello s130t. With a credit score of over 700, you will definitely qualify for Audi Financial Services' special lease program for the 2006 A4. Audi Financial Services' lease program for the 2006 A4 Avant is different than its program for the '06 A4 Sedan, so estimating a lease payment on the wagon is more complicated than just adding $1,000 to the vehicle's price. If you let me know the full MSRP (with the destination charge added in) and an approximate selling price are for the exact A4 Avant that you are interested in, I would be happy to calculate a sample lease payment on it using AFS actual lease program for you.

    Car_man
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  • Hi rosemarie1. It is difficult to say whether Audi's lease program on the A4 will be more attractive several months from now than it is today. Unless Audi has some sort of program that allows you to lock-in its current lease program on an ordered vehicle, you will have to use the program that is available on your car at the time of delivery to calculate its lease payment.

    Car_man
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  • Just leased a 2006 Audi A4 2.0T - Auto/FrontTrak with the sunroof pkg and Premium pkg and XM radio.
    Here are the details of the lease (24 months/12000 miles)
    MSRP: 33,635
    Selling Price: 32,000
    Monthly Payment: $374 + tax
    Paid an inception: Acquisition fee + Tag/Title. = $1300

    I was in the market for an Acura TL (as you may have noticed from my username in this forum) but then realized the Audi was the right one for me.
  • The selling price we got to (in the event I decided to buy) was $34,900 on a MSRP (including transportation) of $35,785. The dealer told me: a) They generally are selling the 06 A4's in this area at no more than $600-800 off MSRP and they are flying out the door - affluent suburbs. They had none in stock to test drive and the evening I was there to sign, two customers were picking up A6's and three were picking up A4's.; 2) The color I selected (Quartz) is a special order color, so that means they are much less likely to find one at another dealer than if it was Black, Red, Silver & a few others he mentioned.
    They started with the advertised 24-month 10,000 miles a year (and $.25/mile for excess miles) $369/month with at-closing add'l $439 down and a $575 acquisition fee (sales tax on top of all this). At one point they were talking over $500 a month, but my final deal is: monthly lease $471.31 including all sales tax (8.375% in my area), the $439 downpayment rolled into the lease, plus 15,000 miles annually. When I pick it up all I pay is a $575 acquisition fee, first month lease payment and $67.50 for NYS DMV fees and a dealer "document" charge. No trade involved.
    Another point: The dealer agreed with me that the pricing and option group content on the models he showed me the invoices for has changed from what is on the Audi site and on the pricing services (Edmunds, KBB, etc). Example: Now the Premium Package includes the 235/45 X 17 all-season tires and 5-double spoke alloys as well as heated front seats - different from what you see at Audi.com and the others. So, making comparisons between 2005.5 and real early 2006 models to what is the practice now is difficult for a buyer since content and price are different. Any input on the deal will be appreciated - but in any event I am hoping to enjoy the car. Thanks.
  • Blessings on you, Car Man. I'm going down to one dealership Tuesday morning and I like to be armed with the numbers.

    The cost of the car, including the extras as well as destination charge and advertising (1% of MSRP) is $36,762.

    I had the dealership work the numbers from how much I wanted my monthly payments to be (not to exceed $500/month, including tax). They quoted $3416 as my initial paymet and my monthly payment would be exactly $500.

    And the money factor is .0022 with a 60% residual value.

    Is this good? Do I understand the terms but not the large picture? Thanks
  • Hi Car_Man. I wanted to ask you if you had any thoughts on the current A4 lease deal. The deal is as follows for the 2006 A4 2.0T FrontTrak CVT Sedan (with Sunroof Package):

    MSRP - $30,960
    $349/mo for 24 months
    $0 down, $575 acquisition fee, and $349 first month's payment due at signing (totaling $924)
    10K miles/year
    Residual - 75% ($23,220)

    In trying to figure out the cap cost (assuming title, tax, and any other fees are paid at signing up front) that was being used in the special lease deal to see if it was a good deal, I had emailed a few Audi dealers in the Southern California area and one actually cut and pasted this chart that showed that the money factor being used by Audi Financial Services was:

    A4 2.0 FT: 0.00274 (12-36 mo), 0.00294 (39-48 mo), 0.00410 (60 mo)
    A4 2.0 quattro: same as above.

    I saw that you mentioned in an earlier reply that the AFS money factor being used is 0.00139. Am I being quoted an inflated money factor? It seems like putting in the money factor I was quoted would result in a lower cap cost used in the special lease offer whereas putting in the money factor you mentioned earlier would result in a higher cap cost used in the special lease offer. Any thoughts?
  • The money factor provided to you by the dealer don't seem correct - the sales person may not know how to do a "cut and paste"

    Try these numbers:-
    MSRP $30,960.00
    Selling price $29,728.00
    Residual $23,220 (75% of MSRP)
    Money Factor 0.00147
    Monthly Payment $349.00 + tax

    If you use a MF of 0.00139 as suggested by car_man - you will need to change the Selling price to $29,827 for a monthly payment of $349.00
  • Hey Car Man,
    Audi has publised the following deal in newspapers here in the NJ area, good until 11/30/2005:

    2006 A4 2.0T Quattro
    MSRP $35310
    24 MO Lease, 10,000 Miles
    $439 Down Payment
    $575 Acquisition Fee
    $369 First Month's Payment
    Total due at lease inception $1,383
    Purchase Option at Lease End $26,835.60
    $369 per month

    The dealer told me the money factor is .00139. I assume that the purchase option amount is the same as a residual, so it must be about 76%.

    No matter how I plug these numbers into any lease calculators I found on line, I can't come close to the $369 per month. I'm always significantly higher. I'm interested in this deal, but I want to add an option package and go for 15,000 miles instead of 10,000. If I could figure out how Audi got to these numbers, I'd be in a better position to rework them to negotiate a deal with the higher mileage, options, etc.

    What do you think? Are they using a LOWER money factor than .00139? What am I missing? :confuse:

    Regards,

    ***Mooselook***
  • kyfdxkyfdx Posts: 31,128
    The information is missing one variable. The selling price of the vehicle.. In this case, the selling price is about $34,140, to obtain that payment...

    IMO, these are pretty good lease deals..... especially for a 24 month lease..

    regards,
    kyfdx
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  • Thanks Car_Man. I have one more question.

    If I have MSRP of $35910, selling price of $33,710, MF of .00139 and total out of pocket at inception $1400 (including first month payment, acquisition fee, motor veh. fees, upfront tax etc), could you tell me what should the payments be for 24 month, 10K lease (76% residual), including tax (6% in NJ). Does $360 sound right?
  • KYFDX:

    "I see!" said the blind man...
    So, in the Audi advertisement, they say "rate based upon $35,310..." but that's not really the selling price. Elsewhere in their ad, they say "Required dealer contribution could affect final negotiated transaction." The "dealer contribution" would be their giving up $1,170 off the MSRP, or about 3.3% to make this deal work. Now I get it!

    Thank you.
  • Sorry for the confusion. Here are some numbers:
    2006 A4 2.0T Quattro with sunroof pkg / premium pkg.
    MSRP is 33,285, and selling price is 32,000.
    Including tax, I am looking at 24 month lease, 15K/yr, $459/mo with $1,000 due at signing.
    Thanks,
    Chips
  • tax is not included in Audi's deal
  • Does the "$1,000 due at signing" include anything other than acquisition fees, tag/title and the first month's payment?

    If not, these should be the figures for a 15K miles/24 month lease:-

    MSRP: 33,285.00
    Selling price: 32,000.00
    Money Factor: 0.00137

    Residual Value: 24,298.05 (73%)

    Monthly Payment: 398.04 + Tax
  • 06 A4 auto w/premium, sunroof, metallic paint, wood interior trim, transportation: MSRP $35,785. Selling price: $34,438. 24-month 15,000 miles a year (and $.25/mile for excess miles). Monthly payment: $471.31. The $439 downpayment and all 8.375% sales tax are rolled into lease. Cash at delivery: $575 acquisition fee, first month lease payment and $67.50 for NYS DMV fees/document charge (total $1,113.81). Also, they are taking 02 Altima 2.5 w/ 42K miles in trade for $11,000 (highest other trade offer I got was $9,800 and KBB value is almost exactly $10,000). Would like to know if this is a decent deal.
  • Can you please tell me if this is a good deal/the numbers sound right? Much appreciated.

    Details:
    2006 2.0 Avant Quattro automatic (state is WI)
    Premium package, sunroof package and manual side shades
    black exterior
    MSRP = $36,060
    Selling Price = $35,500
    Residual = $28,126.80 (76%)
    24 month lease/10,000 year
    Money factor = .002
    Zero down, upfront fees are $438 (first month payment), $575 (acquisition fee), $113.50 (registration) = $1179.56 TOTAL
    Tax = $621.40
    Monthly payment = $438.31 ($462.86 with tax)

    Money factor seems high. How can I counter/get a good deal? Thanks!!
  • Thank you for the reply to my lease question. Is there a formula that I can use to figure out whether I am getting a good lease deal when I am presented with one.
    Do you think I paid a fair price for my 2006 A4 Cabriolet with Premium Package, pearl paint and Parktronic - $39,500.
  • Check out the following site regarding how to figure out how they come up with lease payments. I found this very helpful. You can just plug in the numbers and verify/match what the dealer presents you.

    http://www.leaseguide.com/lease08.htm
  • Car_Man,

    Could you give me the Money Factor and Residual for a 2006 A4 3.2 Quattro, for 24 and 36 months with 15,000 per year? I'm in WV if that matters.

    Mike
  • Congratulations on your new car, acura_tl. thanks for taking the time to share the details of your deal with everyone. Enjoy!

    Car_man
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This discussion has been closed.