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Audi A4 Lease Questions

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  • 2006 A4 2.0T CVT
    WPX - Premium Package
    WB6 - Sunroof Package
    Dolphin Grey

    $33,560 MSRP
    $31,875 Gross Capitalized Cost

    0.00127 money factor
    24 month term
    10,000 miles per year
    75% residual.
    $625 acquisition fee
    $0 security deposit
    $0 cap cost reduction

    Drive off: First month's payment and DMV fees.

    The acquisition fee is high but is more than made up by the money factor.
  • edwardsfedwardsf Posts: 187
    Hi Car Man, I have a price and was wondering about two respective leases.

    2006 A4 2.0T Quattro AT

    Sunroof Package
    Quartz Grey
    Bose/Sirius
    California Car

    $34,535 MSRP
    $32,105 Invoice
    $33,030 Price

    I would like to lease for 3 years but realize the AFS deal is for 2 years. What are the respective numbers (monthly, residual, money factor) for 3 and 2 year leases with 10,000 miles?

    Thank you!
  • Edward,

    Looks like you are in SF Bay Area. Carlsen offered 0.00127 MF and 75% residual on 2-year, 10,000 mile lease. Royal (in SF) said they would match deal (but they never quoted exact numbers so I wasn't convinced about their offer). That should provide you with an indication of what is out there in the market.
  • edwardsfedwardsf Posts: 187
    Thanks Pilot. Royal played a little game with me as well. I requested a quote on a similar car with few options and she came back with a price on a car that was loaded. When I told her I would like to order the one I wanted, I never heard from her. Rector was even worse. Sonnen seems the best so far. That Carlsen deal does sound like the AFS deal on the AudiUSA website. I am hoping that Car man can confirm and give me the calculations soon to compare the 2 and 3 year leases.
  • Here's the current offer from my local central Iowa Audi dealer:
    '06 A4 2.0T quattro quartz grey metallic, 6 speed manual, premium package, sunroof package, technology package, xm radio
    $35,810 MSRP
    $34,400 cap cost
    $27,215 residual (76%)
    24 month term/10k miles per year
    0.00169 money factor
    $575 acq fee

    opinions?
  • Hi aussiem8. Unfortunately, Audi is not providing any sort of lease support on 2005 models any longer. As a result, if you were to lease this car through Audi Financial Services right now, you would have to use its standard lease program, which is not very good. AFS' current buy rate lease money factor and residual value for a 36 month, 15,000 mile per year lease of a 2005 A4 3.2 Sedan with quattro are .00280 and 48%, respectively. Using these numbers, I estimate that a car with an MSRP of $40,520 and a selling price of $36,720 should have a zero down, pre-tax monthly payment of around $637. The payment for an otherwise identical lease of a car with an MSRP of $40,320 and a selling price of $36,566 should be $635. The lease payment for an otherwise identical lease of a car with an MSRP of $39,920 and a selling price of $36,202 should be $629.

    Car_man
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  • Hello ineedanaudi. The lease money factor that you were quoted to lease this car is too high. Audi Financial Services' current buy rate lease money factor for a 24 month lease of a 2006 A4 2.0T Sedan with quattro is only .00139. Audi is even waiving its security deposit requirement for leases of 2006 model year A4s this month, so that can't be the reason why the factor that you were quoted is higher. Most likely, the dealer that you are working with is trying to mark-up this car's money factor in an attempt to add hidden, back-end profit to your deal. This sort of practice is completely legal. In fact, it is fairly common with luxury brand dealers, but now that you know what your car's money factor should be, you should be able to get them to use it if you confront them.

    Car_man
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  • You're very welcome Dave.

    Car_man
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  • Greetings lawgirl1. A base 2006 Audi A4 2.0T Sedan with quattro has a spread of over $2,100 between its MSRP and dealer invoice price. You are only being given a $575 discount on this car. I am not sure what the market is like for it in your area right now, but I suspect that there is a good chance that you will be able to negotiate a larger discount than this. You may want to stop by the following discussion to see how much other community members have paid for similar cars lately: "Audi A4: Prices Paid & Buying Experience".

    I just calculated a lease payment on this car using Audi Financial Services' actual lease program and the prices that you were quoted. Even without a larger discount in this car's selling price the payment that you were quoted looks a little high. Using AFS' buy rate lease money factor, I came up with a zero down, pre-tax monthly payment of around $414. It looks to me as though the dealer that you are working with may be trying to mark your car's money factor up to add additional back-end profit to your deal. You may want to do some more negotiating to try to get a lower selling price and to make sure that a money factor of .00139 is used to calculate your car's lease payment.

    Car_man
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  • Welcome talon4x4. 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.

    Once you have read the aforementioned articles, you will see that you need to know what this car's lease money factor and residual value are. I can help you out with these numbers. If you were to lease a 2006 Audi A4 2.0T sedan with quattro through Audi Financial Services right now for 24 months with 12,000 miles per year, its buy rate lease money factor and residual value should be .00139 and 75%, respectively.

    Let me know if you have any other questions.

    Car_man
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  • Hi ijs1. since this is your first time leasing, you definitely should check out the articles that I just mentioned in my previous post. The contain a ton of useful information on leasing.

    as far as the lease that you mentioned goes, 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 work give you my opinion on the deal that you were quoted if you let me know what its selling price is.

    Car_man
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  • Hello a4effort. Audi's 48 month lease program on this car is terrible, so you are much better off leasing it for 36 or 39 months. I'm not sure which one will result in the lower lease payment, but I suspect that the 36 month program will be a little better. 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 A4 2.0T sedan with quattro are .00139 and 59%, respectively. The numbers for an otherwise identical 39 month lease are .00159 and 56%. Using these numbers, an MSRP of $39,360, and a selling price of $36,500, I estimate that this car should have a zero down, pre-tax 36 month payment of around $452 and a 39 month payment of around $464.

    It is in your best interest not to make any sort of down payment when leasing. You can still trade in your BMW if you want to, but have the dealer cut you a check it rather than using rhe proceeds as a capitalized cost reduction. 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 your Audi 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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    P.S. I just noticed how strong this car's 24 month residual values are. They are so strong that even though short leases are normally more expensive than long ones, this might not be the case with this car. Let me know if you want me to give you the 2 year info.
  • I am glad that you have learned so much from visiting this discussion, darwin3. Kyfdx is right, I am not aware of any source that provides accurate information on manufacturers' lease programs to the general public.

    Car_man
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  • Hey sfhondapilot. I guess that you're going to have to change your username to sfaudia4 ;). The deal that you were quoted looks good to me. Not only are you being given a reasonable selling price for this car, but the dealer that you are working with is using Audi Financial Services' buy rate lease money factor to calculate its lease payment. The only aspect of this deal that looks a little padded is the acquisition fee that you were quoted. AFS' current base lease acquisition fee is only $575. Still, the dealer is only adding $50 in there. If you like this car, I don't see any reason not to pull the trigger on this deal.

    Car_man
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  • Hi edwardsf. Even though Audi is advertising a 2 year lease on this car, it has a special program for 3 year leases of it as well. 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 76%, respectively. Using these numbers, an MSRP of $34,535 and a selling price of $33,030, I estimate that this car should have a zero down, pre-tax monthly payment of around $365. If you were to lease it through AFS for 36 months with 10,000 miles per year, its buy rate lease money factor and residual value should be .00139 and 62%. Using these numbers and the above prices, I come up with a lease payment of around $399. The residual values for the 2 year lease are so high that it is actually the best deal, which is unusual for a shorter term.

    Car_man
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  • Hi iowa_audi. The selling price that you were quoted for this car is reasonable, especially given the fact that I doubt there is a lot of competition from other Audi dealers in your area. The acquisition fee that you were quoted looks good to me as well. However, it appears as though the dealer that you are working with may be trying to mark this car's money factor up to add additional back-end profit to your deal. Audi Financial Services' current buy rate lease money factor for a 2 to 3 year lease of a 2006 Audi A4 2.0T sedan with quattro is only .00139. Try to get the dealer that you are working with to use this factor to calculate your car's lease payment.

    Car_man
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  • I've never leased a vehicle so I wanted to be sure I have all the info before I did.

    I have found a used 2005.5 A4 2.0T Front Track CVT, with Premium Package, Bose Audio Package, and the Sport suspension package. It has 2,800 miles on it and is selling for $28,800. The MSRP on it new (according to the sticker I saw) was about $33,000. I found this vehicle in the Los Angeles Area.

    Question 1: Is it even possible to lease a used car from an Audi dealership? If so what kind of lease can I expect?

    Question 2: Is the price they're selling a "slightly" used A4 reasonable or should I still try and negotiate a lower price still?

    Thanks in advance any help would be appreciated, as I'm probably going to jump on this deal unless I hear otherwise.
  • edwardsfedwardsf Posts: 187
    Thanks Carman! You da .... ah well, you already know that!

    They are charging me a Bay Area Assn fee of $150 and a preparation and inspection fee of $195. This is included in the 33,030 price which is $925 above invoice (which I am okay with). I am just looking at their fees as part of their profit. They are including a destination charge of $720 and will then be adding an acquistion fee ($575), right? Does the acquistion fee include such dealer prep or is that an Audi fee? I have already given a deposit and ordered the car.
  • wco81wco81 Posts: 495
    What did you get (options, color) and from which dealer in the Bay Area?

    They let you order it and still honor the lease deal which ends at the end of Nov?

    I thought you had to take possession within Nov.
  • Thanks Car_man! I would like to the two year info as well. It does seem that this might be a better deal for me. Appreciate all your help!
  • Car_Man,

    Great info here - thank you very much. I am currently negotiating to lease a 2006 A4 over a 24 month period. I will be financing $32,700 over the 24 month period at the money rate of .00139. Each of the 3 dealers I have visited have offered to lower the money rate to .00067 if I put down a security deposit of $3,600 which is fully refundable at the end of the lease term with no interest paid on the deposited funds (they refer to it as "Multiple Deposits"). The reduction in the money rate lowers my monthly payment by $40 or $960 over the full term of the lease. This seems like an outstanding deal to me since if I were to hold those funds in the best interest bearing account I could find I would not be able to match the 13.3% annual return that I am effectively getting on the deposited funds. Am I missing something here or is it as good as it seems?

    Thanks for your help!

    Steve
  • kyfdxkyfdx Posts: 27,985
    I don't think you are missing anything.. the Audi MSD program is very good (Lexus is also).... It really is a no-brainer, if you have the excess cash sitting in a money-market account.

    regards,
    kyfdx
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  • Carlsen was $500 over invoice + $150 advertising and $195 port prep fee (at least that's how those fees were described to me).

    You are exactly right, everything is all part of the overall negotiation package. In my case, to correct my earlier post, the acq fee was $620, which I knew was higher than the standard fee, but the money rate was so much better that I was better off, at the end of the day.

    I also paid the destination charge, as well.

    Good news, the car arrived at the dealership today. Should be able to pick up on Friday.

    :)
  • I am currently looking into different dealerships for the best deal on a 2006 Audi A4 quattro lease with 10k miles per year and 24 months. So far the best deal I have recieved is $399 month with $850 down including RI sales tax of 7%. How does this deal match up ? The car has the following specs:

    Auto transmission, sunroof package, cold weather package, and heated front seats (not the entire premium package)The color is gray quartz which adds $475 to the price. The MSRP of the vehicle is 34,135 and I am getting it for $32,750 with the above payment. How much are they making on me and do I have more room to negotiate? The money factor is .00139 and the L.E.V is 76%.
  • edwardsfedwardsf Posts: 187
    WCO, I am dealing with Sonnen, although Livermore offered something similar (and Pilot reports Carlsen is also similar). Sonnen seems much better than Rector, Oakland or Royal. I ordered Quartz Grey with Ebony. (Black interior is insane here in sunny CA but it is so gorgeous!). I wanted liquid blue but it does not come with black interior. Note that my package does not have 17" wheels - you have to order premium or sport package. I don't want those wheels as I have had flats and side blowouts on those low profile tires.

    Here is the deal on ordering and leases - as I understand it. As you suggested, if the lease special is still valid when your car comes in, you can take it. In this case, Audi USA (on the 800 customer service line) said the lease deal is good through December. But if my car arrives January 1, I can simply say, nah, changed my mind and get the refundable deposit back. I don't think I would and my guess is that January might bring an even better deal - hard to know, but it is essentially no risk. Now, the price itself is subject to change due to Audi changing prices or the Euro going up but that should not be a huge deal.

    Pilot, thanks for confirming those fees. The overall price is good so I didn't want to quibble. Cool that your car is coming in! What color?
  • Glad to help. It easier to pull the trigger when you have a good frame of reference. I agree with you about quibbling. There are only a couple factors involved: price, money factor, residual and fees. Push too hard on one and you cannot expect to get the best numbers on the other three. I don't need the best deal, just a fair deal.

    Interesting that we have the same experience with Royal and Rector. FWIW, Sonnen never contacted me when I requested a dealer quote, via Edmunds. Of course, Sonnen would have been on the bottom of my list after they jerked me around when I was buying my X3, last year.

    Anyway, the A4 was delivered to Carlsen on Monday. We'll pick it up on Friday. It's Dolphin Grey.
  • edwardsfedwardsf Posts: 187
    Cool - I love that dolphin grey. I just had to have black interior though, so the combo would have been a bit hot for me.

    Sorry to hear they jerked you around. Audi and BMw may also be run by different managers. Do you still have the X3? That car would have been my first choice - roomy, sporty, cool looking (and I don't like 3 series looks) but I had to have really good MPG. Get a hybrid in that car and....
  • Finally got some info from the dealer, it was like pulling teeth for the numbers I got.

    The MSRP is $35,440. The value of my trade is $7186. $1186 of that will go towards reducing the price of the A4, making it $34,254. $3000 of the $7186 from the trade will go towards paying off the rest of the loan on the trade in. I will be getting a check from the dealer for $1350, the remaining amount from the trade-in. My monthly payment is $400 for the next 23 months. They also said they are using a residual value of 75% and money rate of .00169.

    Does this seem decent?!?
  • I have the following quote and want to know what you all think:

    MSRP 36,385
    Purch Price 35,700
    75% residual value
    Money rate of .00185

    Is the money rate higher than the .00139 you're all quote above due to it being the avant vs the sedan? why are they so different?

    Thanks for any help.
  • The .00139 I was quoted was for the A4 sedan quattro. Reading through everything it sounds like the dealer is trying to make some extra cash. Push for the .00139.
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