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Audi A4 Lease Questions

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  • Hi lifescan. Let's adjust this car's selling price and mileage allowance and see what the new payment is like. According to my calculations, if you were to lease a 2006 Audi A4 2.0 T quattro with an MSRP of $34,910 and a selling price of $33,800 through Audi Financial Services right now for 24 months with 15,000 miles per year, your zero down, pre-tax monthly payment should be around $429. With a down payment of $1,065, which the ad uses but I advise against, the monthly payment would drop to around $384.

    Car_man
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  • Wco81, the selling prices of leased vehicles are always negotiable, just as if you were paying cash for or financing them. Furthermore, most manufacturers' advertised lease payments leave a little meat on the bone so to speak. There is a good chance that you will be able to negotiate a lower selling price on the A4 that you are interested in than the one that was used to calculate this advertised lease payment. As far as the sunroof goes, even if this item is an option I highly doubt that you will be able to find many Audis in dealer stock that are not equipped with one.

    Car_man
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  • Edwardsf, the only option on the 2006 Audi A4 that has an impact upon its lease money factors is quattro. A4 models that are equipped with quattro have slightly higher lease money factors than those that are not equipped with it. The fact that AFS' residual values are one point higher for quattro models makes up for the higher money factor though.

    Car_man
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  • Hey nvnick. The lease program info that you posted is incorrect. Audi Financial Services' current buy rate lease money factor and residual value for a 36 month, 15,000 miles per year lease of a 2006 Audi A4 4dr Sedan 2.0T without quattro are .00127 and 58%, respectively. Also, AFS' buy rate month factor for a 3 year lease of an otherwise equivalent car equipped with quattro is currently only .00139.

    Car_man
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  • HI aka5. You never mentioned the selling price of the car that you are interested in leasing. 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. I would be more than happy to give you my opinion on this deal if you let me know what its selling price is.

    Car_man
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  • Greetings j0916. Using Audi Financial Services' actual 24 month,12,000 miles per year, lease program for this car, a .00139 money factor and a 75% residual value, an MSRP of $36,360, and a selling price of $34,813, I come up with a zero down, pre-tax monthly payment of around $401 for this car. The money factor that you were quoted is higher than AFS' actual buy rate factor for this car, assuming that you are not having your car's security deposit or acquisition fee waived.

    Car_man
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  • j0916j0916 Posts: 9
    Thanks Car_man,

    I think I have a bit more negotiating to do as it seems that at least this Bay Area dealer does not want to use the AFS buy-rate. I wish I knew whether the Bay Area lease special was the 0.00137 rate with about a $700 discount or a bigger discount and and the 0.0018 rate. I'm not sure how much wiggle room I have given the Manual Quattro/sport inventory over the next 2 months is very low and my current lease is expiring. Those that are available are mostly black/ebony and have a strange mix of options. A lot of the stuff in-transit and on lots is already sold as I did have the opportunity to browse the whole inventory list. I'd be happy with the less than awesome selling price of $35161.58 and the buy-rate of 0.00137 which would get me out the door 0 down and $450/mo (taxes in), which is $27/month less than where we are at now. That still leaves them with $1611 over invoice.

    In the end, I could only find one car that came somewhat close to my specs in California and it's still in transit to another dealer. I'll have confirmation in a day or two whether we can get it.

    Thanks,

    J
  • aka5aka5 Posts: 24
    Hi j0916,
    Thanks. The MSRP price is $30,940 + $475 for the colour + $1400 for the sunroof package + $1950 for the navigation and $720 for destination. It is with zero down but he says this is for title and reg fees. The one thing that is very worrying is that he says he can order like this with the navigation. But other dealers are saying that i need to get the technology package + the premium package in order to get the navigation? Thanks for your help. :)
  • aka5aka5 Posts: 24
    Hi Car man
    The MSRP price is $30,9409 (gave me a print out which shows this price with retail prices Audi of America Inc, Effective 1 June 05 on it) + $475 for the colour + $1400 for the sunroof package + $1950 for the navigation and $720 for destination. It is with zero down but he says this is for title and reg fees. The one thing that is very worrying is that he says he can order like this with the navigation,(90 days wait though. But other dealers are saying that i need to get the technology package + the premium package in order to get the navigation? Does this smell fishy? Thanks. :)
  • aka5aka5 Posts: 24
    I fogot to mention that the money factor is 1.37 down from 1.77 :)
  • j0916j0916 Posts: 9
    Aka5,

    Not sure what to tell you except that according www.audi.com a 2006 A4 quattro configured with the Nav system does in fact need the Sunroof, Premium and Technology Packages which fully configured in Dolphin Grey has an MSRP of $39385 (including destination fee). It is possible that it may have been available a few months ago as they recently changed the option packages a bit, but honestly I don't think that was the case. Other than that, the upfront costs they quoted seem high if none is used as a downpayment. Even if they were hitting you with a security deposit, aquisition fee, first months payment and fees. My calculation for this car using the 75% residual and 0.00139 for 24 months is $508/mo plus taxes, 0 down plus upfront fees. This is based on the MSRP so you can likely do better, but this is a much more expensive car than posted in the Ad specials.

    J
  • aka5aka5 Posts: 24
    Hi j0916,
    Thanks. I think i have to get down to the nitty gritty with this sales guy then get back to,if you don't mind. Waiting to hear from Car man too. :confuse:
  • rjlaerorjlaero Posts: 659
    You do have to order the technology and premium packages to get navigation and there's nothing fishy about it. Go to audiusa.com and build your A4. It won't let you build a navi car w/o those packages.
  • disney2disney2 Posts: 25
    How am I doing? I was offered $425/mo for 24 months or $451 for 36 months with $1068 due at signing (? first month and $575 acquisition and registration?) for either $35935 msrp cold and premium silver A4 quatro auto or 34910 black on black premium (salesman said more requested color so not as good deal). I am in NJ. Tax is included in payment. Thank you :confuse:
  • lreinlrein Posts: 1
    I am looking at the A4 2.0T I haven't ever leased a car and really dont know the important details about money down and the money factor and residual value would be. I was told not to put money down when I lease is this true?
  • dtm3dtm3 Posts: 3
    Hi, I just signed a purchase agreement for a new A4 and have a few days to decide how to pay for it while waiting for delivery. Was intending to pay cash but then started looking at the lease pre-pay option. I've never leased before, and I know the smart minds on this forum recommend avoiding lease down payments, but I haven't seen any discussion on the full pre-pay option and would greatly appreciate any insight.

    My assumptions:
    Typically drive ~15,000 miles / year
    Don't want the car after warranty expires (~3.25 years)
    Doubt I could sell the car for much over residual (59%)

    This is the car:
    2006 A4 8EC5EL 2.0T Quattro Auto
    WPX Premium Package
    WB6 Sunroof Package
    PX3 Technology Package (the rare $1,275 non-BT version)
    PAW Cold Weather Package
    5MG Dark Walnut Wood Trim
    8X1 Headlight Washer
    Black on Black, no paint upcharge
    $720 Destination charge
    MSRP $37,135
    Selling price: $35,367 ($500 over invoice)
    State taxes: 5%

    Option 1: Buy
    Buy for cash, unload it for ~$20-22K in ~3.25 years
    Cost is $35,367 + 5% Tax = $37,135

    Option 2: Typcal Lease:
    Term: 36 months
    Annual Miles: 15,000
    Residual: $21,909.65
    MF: 0.001390
    Down: $1,000
    Inception $767.94
    Assignment $575
    Cost: $463.75 + 5% Tax = $486.94 / Month

    Option 3: Pre-pay Lease:
    Term: 36 months
    Annual Miles: 15,000
    Residual: $21,909.65
    MF: 0.000390
    Down: $15,867.82
    Inception $281.94
    Assignment $575
    Cost: $14,844.59 + 5% tax = $15,867.82

    My (unvalidated) Observations:
    The pre-pay option seems equal to or better than the buy option, if my assumptions about resale and keeping the car for ~3 years hold.
    There's $1,750 sales tax for buying compared to $742 for pre-pay
    Leasing plans have do involve extra fees, like the $575 assignment
    Regarding the whole lost/stolen equity-gap argument against lease down payments... wouldn't you be equally screwed inconvienced in the buy out-right scenario?
    Lower money factor for pre-pay yields a ~$550/year savings over the standard 36 month term.

    Some Questions:
    What am I missing?
    What are the hidden traps in a pre-pay lease (and why don't you hear much about them)?
    Is the (option 2) 36 month MF rate of .001390 standard, or a little high?

    Thanks for any thoughts,

    -dave
  • disney2disney2 Posts: 25
    Car man are you out there? We haven't heard from you.

    Thanks.
  • snal23snal23 Posts: 3
    I was quoted on 06 dolphin gray a4 2.0 quattro fully loaded based on
    MSRP $39185
    I'm in Seattle area
    FIRST PAYMENT 516.58
    |
    | CAP REDUCTION(DOWN PAYMENT) 0.00
    |
    | TAX ON CAP REDUCTION 0.00
    |
    | REFUNDABLE SECURITY DEPOSIT 0.00
    |
    | DOCUMENTATION FEE 35.00
    |
    | DMV / ADMIN FEES 153.25
    |
    | FEDERAL LUXURY TAX 0.00
    |
    | ==========
    |
    | TOTAL ADVANCE PAYMENT 704.83
    |
    |
    |
    | MONTHLY PAYMENT
    |
    | 24 LEASE PAYMENTS @ 473.49
    |
    | SALES TAX 43.09
    |
    | ==========
    |
    | TOTAL LEASE PAYMENT 516.58
  • kyfdxkyfdx Posts: 29,217
    It looks pretty good... What is the mileage allowed?

    regards,
    kyfdx
    Host-Prices Paid Forums

    MODERATOR
    Prices Paid, Lease Questions, SUVs

  • snal23snal23 Posts: 3
    It's 12k miles per year
    should I do it? or I can get sth batter than this?
  • disney2disney2 Posts: 25
    Kyfdx--

    Cay you please comment on my question (139) above?

    Thanks
  • I am trying to get a deal on a 2006 A4 2.0 MSRP 38,085. What would you say is a good price to pay and any tips on leasing or what to look out for? I am doing a 24 month lease with no money down.

    Thoughts?

    Thanks!
  • but isnt it true that when the residual is higher, the monthly payment is lower?
  • As wee speak, I am getting final prices from dealers for a 2.0 a4 with an MSRP of 38,085. What price do people think I should I be paying? Does 34,800 sound too low?
  • Hi,

    Is a residual of 75% with a money factor of .00179 a good deal on a 24 month lease of 2006 Audi A4 2.0 Tiptronic with an MSRP $35,935.00? Are either of these residual and money factor numbers negotiable? I was planning on putting $2000 of my own money down, but after reading these forums I realize that this is not such a good idea. The sales guy tried to offer me the car at $1600 above invoice which is a joke, but I was wondering if I can negotiate him down on the Cap Cost that the residual and money factor numbers make the deal worthwhile.

    Many thanks in advance for your help.

    MazdaSeller (Not MazdaBuyer)
  • I got a final offer from one dealership for 35,400 from an MSRP of 38,085. The are checking with the sales manager to see if they can go any lower. I am thinking this is a good price, amy I wrong? :confuse:
  • nuggsnuggs Posts: 1
    Hi. I am thinking of buying/leasing an A4. The following is a lease option advertised. What are your thoughts.
    Thanks!

    $369/month for 24 months.
    24-mo. closed-end lease . Rate based on $33,060 MSRP of 2006 Audi A4 2.0 T with quattro including Sunroof package and destination charge. Purchase option at lease end for $25,126. Lessee responsible for $0.25/mile over 10,000 miles per year and a disposition fee of $350 due at lease end.
  • disney2disney2 Posts: 25
    I agreed to A4, auto, quattro, sunroof, premium, cold msrp 35700. 24 mo, 10k miles. $1068 due at signing (first mo, $575 acq fee, mv). $425 per month (6% NJ tax is in the payments.) I was told this payment was based on $1200 below MSRP
  • disney2disney2 Posts: 25
    I think this is a very good deal but in NJ you can't find an A4 without premium. They say they have to order them.
  • rjlaerorjlaero Posts: 659
    Why is $1600 above invoice a joke? You're not buying an American made car or a honda or toyota. Audi dealers are not going to sell 2006 models for $200 above invoice. Edmunds has the true market value of A4 about $600-700 off MSRP.

    Dealers have 2 grand or so cash back on 05.5's, but they don't lease out very well. So if you're looking for a big discount and get $4,000 off sticker, that's where you need to go. But you need to get an 06 for the lease special.
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