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Audi A4 Lease Questions

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  • I am getting my A4 2.0 with evereything but nav system msrp 38,085 for 35,300. That is 471 below invoice!
  • Went to another dealer today and they offered me $585 above invoice price. The breakdown is:

    24 month Lease
    12,000 miles per year
    MSRP: $34,135
    Total Down: $2,246.32
    Total Monthly Payment: $390.11
    MoneyFactor: 0.00169
    Residual: 75%
    Lease End Value: $25,601.25

    Does this seem like a good deal? The car is pretty basic but good enough for what I need. I upgraded the wheels, added the sunroof package and heated front seats.
  • dtm3dtm3 Posts: 3
    Well thanks for nothing.

    But for what it's worth, after checking with an accountant I decided to go with the one-pay (option 3). Also learned that the 59% residual is about 4% better than the expected value.
  • ckelly14ckelly14 Posts: 105
    I guess what you're "missing" is that if you put money down up front, you lose the interest that you would be making on investing that money. If you took the 15K up front, and made about 5% on your investment, the first year would produce $750, which is more than the $550/year you would be "saving" with the lump-sum payment. This is very oversimplified just to prove a point.

    This being said, I know nothing of the tax implications for your specific situation. Go with what your accountant says...
  • You're welcome j0916. Low inventory of the vehicle that one wants never helps their bargaining power. Good luck and let us know how everything turns out.

    Car_man
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  • Thanks for the information aka5. This car's full MSRP is a good starting place, but we still need to know what its selling price is in order to determine how good a deal you are getting on it. Always remember that the selling prices of leased vehicles are negotiable, just as if you were paying cash or financing. You wouldn't finance a car or pay cash for it without knowing the price would you :)? Let me know the selling price and I will give you my opinion on the deal that you were quoted. I can even use it, along with the MSRP that you already mentioned, to estimate what this car's lease payment should be if you were to lease it through Audi Financial Services right now.

    Car_man
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  • Hi disney2. 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 of this deal if you let me know what this car's selling price is.

    Car_man
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  • Greetings lrein. I always advise consumers against making any sort of down payment when leasing. I do so for two main reasons. The first is if your vehicle is totaled in an accident or stolen during your lease, your insurance company pays off the bank that you were leasing it through and your down payment essentially disappears. The second main reason is that down payments on leased vehicles do nothing to reduce their lease-end purchase prices. So your lease-end purchase option price for this car would be exactly the same, regardless of whether you had put several thousand dollars down, or had made absolutely no down payment at all.

    Car_man
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  • disney2disney2 Posts: 25
    msrp 35,700 price 34, 500

    Thanks
  • I am looking for a lease on a 3.2, and the best quote that I have so far is for $400 over invoice. Where are you buying yours?
  • Hi Dave. Pre-paid leases are different than making a large down payment on a normal lease. While they are not interest-free, most banks will provide some sort of reduction in the interest rate that they normally charge to consumers who opt to pay for their entire lease in advance. If I am not mistaken, I believe that there is less risk associated with pre-paid leases than there is with making large down payments on normal leases because with a pre-paid lease you should be refunded the unused portion of the total cost of your lease in the event that your vehicle is stolen or totaled in an accident. While they often provide an attractive way to get a new vehicle you probably don't hear more about pre-paid leases because most consumers either don't have the cash or are not willing to shell out the large amount of money that pre-paid leases require. You are right, with this particular model right now the pre-paid lease program looks very attractive. One never knows exactly how much a vehicle will be worth at the end of a specific period of time, but I agree that it is probably unlikely that the A4 that you are interested in will be worth nearly 60% of its original MSRP after a 3 year, 15,000 miles per lease. If you have the cash to pay for an entire lease in advance, you may want to consider going with that option. Just don't forget to take the opportunity cost, aka lost interest on the money that you are laying out, into account when you make your decision.

    The .00139 lease money factor that you were quoted for a normal lease of this car is in line with Audi Financial Services' current buy rate for it. Dealers are not allowed to lease you this car with a lower money factor than this. It is not that bad a rate, it's equivalent to an interest rate of around 3.33%.

    Car_man
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  • Hi snal23. 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 if you let me know what these numbers are.

    Car_man
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  • Hi jmdonarum. I would be happy to give you an idea of what a good lease payment is on the car that you are interested in. It would be a big help though if you were able to provide me with an approximate selling price for the exact car that you are interested in. Always remember that the selling prices of leased vehicles are negotiable, just as if you were paying cash for or financing them. You should be able to get an idea of how much you should pay for this car by visiting the following discussion: "Audi A4: Prices Paid & Buying Experience". Once you have an approximate selling price, stop back and let me know and I will work up a sample lease payment on this car for you using Audi Financial Services' current base lease program for it. Talk to you soon.

    Car_man
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  • I think that you need to change your username, mazdabuyer ;). No the lease money factor that you were quoted for this car is not a good deal. Audi Financial Services' current buy rate lease money factor and residual value for a 24 month, 12,000 miles per year lease of a 2006 A4 2.0T Sedan with quattro are currently .00139 and 75%, respectively. As long as you pay a security deposit (equivalent to your car's monthly payment rounded up the the nearest $25 or $50 increment) and AFS' $575 lease acquisition fee, you should be able to qualify for this factor. If you are being charged a higher factor than this, there is a good chance that the dealer that you are working with is marking-up your car's buy rate to add additional back-end profit to your deal. This practice is completely legal and happens all the time, especially with luxury dealers, but it can be avoided by consumers who know what their car's buy rate is and who insist that it is used to calculate their lease payment. So the money factor for your car is sort of negotiable, but its residual value is set in stone.

    Car_man
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  • Greetings nuggs. I am not sure what sort of selling price the advertised lease that you mentioned is based upon, but generally speaking most manufacturers' advertised lease payments leave a little meat on the bone so to speak. I would not be surprised if you were able to beat this deal by shopping around.

    Car_man
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  • Hey mazdabuyer. $500 over invoice is a very reasonable price for a 2006 Audi A4 right now. As I mentioned earlier though, if you are paying a security deposit and acquisition fee the money factor that you are being charged is a little high.

    Car_man
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  • Thanks for the additional informaiton disney2. So you were offered this car with a $1,200 discount. This is probably around $1,000 over invoice or so on this particular model. This isn't a bad deal, but you might want to stop by the following discussion to compare the price that you were quoted to what other community members have paid for similar cars lately: "Audi A4: Prices Paid & Buying Experience". Let's use the prices that you provided to calculate a lease payment using Audi's actual lease program and see what we come up with. According to my calculations, if you were to lease a 2005 Audi A4 2.0T Sedan with quattro with an MSRP of $35,700 and a selling price of $34,500 through Audi Financial Services right now for 24 months with 12,000 miles per year, its zero down, pre-tax monthly payment should be around $408. The payment for an otherwise identical 36 month lease should be around $432. With these deals, at lease signing you would have to pay your car's first month's payment, a security deposit equivalent to that payment rounded up to the nearest $25 or $50 increment, AFS' acquisition fee of $575, and any required state taxes or fees. These payments are a little lower than the ones that you were quoted, but if you are having your security deposit waived, or your acquisition fee added into your car's cap cost it would account for most of the difference.

    Car_man
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  • Hi Car Man. I'm looking to lease a 2005+ 3.2 A4 in the next couple of days (although the dealer doesn't know yet that I intend to lease). The dealer is offering three that I'm interested in:

    1. MSRP $40,520, dealer invoice $37,553 (excl. $2,500 rebate), sell price $36,720
    2. MSRP $40,320, dealer invoice $37,371, sell price $36,566
    3. MSRP $39,920, dealer invoice $37,007, sell price $36,202

    Want 36 month lease with no down payment, and 15,000 miles/yr. My questions for you are what residual % and money factor should apply (assume I have an outstanding credit rating)? What would you calculate as the monthly payment before tax for each of the above. Thanks for your help, mate.
  • Hi there all.
    I am looking for a good deal on an Audi A4 Quattro 2.0T and seem to be getting the runaround from my local dealer.

    Here is the lease deal on the Audi website:
    2006 A4 2.0T Quattro
    2006 A4 2.0 T quattro Sedan
    $369 per month
    24-month lease**
    ---------------------------------------------------
    Down payment $0
    Refundable security deposit $0
    Acquisition fee $575
    First month's payment $369
    ---------------------------------------------------
    Based on 33060.00 MSRP
    Amount due at lease inception $944
    This includes 10000 miles a year and residual= $25125.00

    Here is the Audi that I am looking at. The sales price is very similar to the MSRP that the lease is based off of but they want $399.00 a month for the same 24 mo lease!

    Money factor is: .00195
    Here are the details:
    10000 miles/yr
    Down payment $0
    Refundable security deposit $0
    Acquisition fee $575
    MSRP- $34585.00
    Purchase price- $33000.00
    Invoice- $32608.50
    Options- Siver paint, premium, cold weather, sunroof. (I included these in the above MSRP and purchase price)
    Does the .00195 money factor seem high? What is the money factor of the Audi lease listed above my offer? Don't you think that I should be paying around $369.00 for this lease? Thanks to anyone who responds....
  • kyfdxkyfdx Posts: 27,991
    The MSRP of the unit you are considering is approximately 4.6% higher than the advertised model... I would expect the corresponding payment to be similarly higher..

    In this case, that would be approximately $386/mo... I wouldn't expect to pay the same amount for a more expensive car... though $399/mo. seems like too much, if all of the other variables are the same.

    regards,
    kyfdx
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    MODERATOR
    Prices Paid, Lease Questions, SUVs

  • dtm3dtm3 Posts: 3
    Thanks Car_man, that makes me feel much more comfortable.

    -dave
  • I am looking to lease a 2006 a4 2.0quattro. I just returned from my local dealer and this is the price he gave me. Is this a bad deal?
    Sticker price-34,110 Premium pack, sunrook pkg, 17 inch whls, heated seats, black on black.

    Offered me a price of 33, 535
    24 month lease
    12,000 miles per yr
    payment 438.24 per month
    Due at signing: 1st payment of 438.24 and tax of 867.72 = $1305.96.
  • This is going to be my first Audi and my first lease, I have always financed the full price and owned the vehicle after 4 years. So I would like some info to go to the dealer with, especially considering that the nearest dealer is over an hour away, so I would like to get this done in one trip.

    Here is the info I have found, hopefully it will be enough to figure out a starting point on a lease.

    I'm looking to lease an '06 A4 Quattro. The price the dealer quoted is $38,085. With these options:
    "Light Silver Metallic - Ebony Interior - Front License Plate Holder - Retractable High Pressure Headlight Washers - Cold Weather Package - X M (r) Satellite Radio - Sunroof Package - Premium Package - S Line Sport Package - Preparation and Inspection"

    The price on the Audi website with the same options is $38,735. I also looked at Autobytel and they show an invoice price of $35,416 and an MSRP of $38,260. I'm looking to get a 24month lease with 12k miles/year. The taxes in my area are 8.25%.

    Any help would be greatly appreciated. As I said this is my first venture into a lease!!!

    Thanks!!
  • The money factor that they are using is high. See post #169.
  • rjlaerorjlaero Posts: 659
    Even with a $2500 dealer incentive, you're much better off gettting an 06 model than leasing an 05.5. Buying for cash may be different.

    The residual and money rate factors are far better on the 06's. The 05.5 still say 05 on the sticker and the leasing companies look at these cars as 1 year old.

    Audi has a $399 lease deal on the 06 3.2 models. Checkout the website.
  • ijs1ijs1 Posts: 1
    This would be my first time leasing a car.

    A4 3.2 Quatro
    Silver Metallic
    Sun Roof
    Premium
    Sport Suspension
    (In Southern Cal)

    MSRP=$39,535

    Out of pocket $3,150 at signing. $475/ mo for 24 mos. with 12K / year. Mind you, I am upside down on my current car loan for approx. $1,500.

    Thanks,
  • I am looking to lease an 06 a4 2.0T quattro. this is a 6spd man, sline, premium, sunroof, cold weather, technology pkg car. MSRP is 39360. I need 15k/yr and i am open to term up to 48 mo. I want the lowest payment, obviously at any term 12-48 mo. What is the buy rate fro november and residual for 15k on this car. I live in Wisconsin where tax is 5.6%. Assuming I can buy this car for 36,500 what payment am I looking at? I would come up with up to 3000 at signing (about 1000 coming from trade equity on my 99 bmw)

    Thank you,
  • I have learned a lot in the past few days reading Car Man's various posts in the Audi and Lexus leasing forums. I'm trying to decide between leasing an A4 and IS350 right now. I understand how the leases are calculated, but what I don't understand is how Car Man is able to obtain the dealer's Buy Rate Money Factors.

    Is there a place on Edmunds.com (or any other website) where I can browse every car manufacturer's current buy rate money factors and residuals for each model? This would be VERY helpful information when evaluating lots of different leases.
  • kyfdxkyfdx Posts: 27,991
    Car_man has contacts in the industry..

    As far as I know, there is nowhere else you can go to get all of the information that he provides here.

    regards,
    kyfdx
    Host-Prices Paid Forums

    MODERATOR
    Prices Paid, Lease Questions, SUVs

  • Cool, perhaps you might consider mentioning to the decision makers at Edmunds that this information would be valuable if it were published somewhere on the site.
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