Howdy, Stranger!

It looks like you're new here. If you want to get involved, click one of these buttons!





Audi A4 Lease Questions

16869717374214

Comments

  • simansiman Posts: 7
    We plan to revisit the dealership this Saturday and will let you know what I get from them.
    It looks like the special leasing program is the bottom price and I am sure they will try to add on some other fees as you are dealing with them in person.
    I will try to minimize my downpayment and monthly payments :-)
    Thanks!
    PS: My dealership is Crown Audi - clearwater, FL.
  • This just happened to me. I leased my audi and got my loan through Audi Financial Services (AFS). I had my mechanic sell my car and we listed it at the pay-off I was quoted by AFS. Needless to say I now owe my mechanic money because when the car sold yesterday and he purchased the car from AFS with the money he was given by the purchaser, AFS charges him the higher price (which neither of us knew anything about). This being said has anyone ever been succsesful in having AFS re-pay them the diffirence between the two pay-offs?
  • Kirstie@EdmundsKirstie@Edmunds Posts: 10,676
    A reporter from a large local newspaper would like to speak to consumers who have just leased a vehicle. Please respond to ctalati@edmunds.com no later than June 21, 2007 with your daytime contact information.

    Need help navigating? kirstie_h@edmunds.com - or send a private message by clicking on my name.

  • edwardsfedwardsf Posts: 187
    Thanks for your attempts to explain this. According to 2 contract attorneys in my office, your view that it is unethical for AFS to require that "ONLY [the lessee] can buy it for the price agreed," has no basis in contract law. The third party buyer has no privity with the lessor, AFS, and therefore has no right to the price that the lessee contracted for. Why you guys think that a lessee can transfer the lease buyout terms to a third party or that the lessor would allow the lessee to do so is beyond the understanding of the two contract attorneys I spoke to. That is, if you want out of a business deal, you got to pay.

    Remember, by selling to the third party at resdiual, Audi will lose interest. AFS can certainly agree to release the lessee but they can also make up for this lost profit by charging more to the third party. Even if the lessee himself can eliminate the interest through a prepayment buyout, AFS has no obligation to grant this original contract inducement to a third party. By agreeing to transfer this price to the third party, Audi loses the opportunity to sell the car for the price and manner they choose. After all, it is AFS' car and they get to sell it at the terms they set. Again, AFS is under no obligation to provide a third party with the terms that they have negotiated with the lessee.

    I never said that Audi is taking a consumer friendly position. I only said that I don't believe that such a consumer friendly practice is industry custom. Neither of your combined 5 or 6 posts has provided any support for the existence of this supposed custom, so I can only conclude that it does not exist. One thing that we can agree on is that lessees should not assume that Audi - who subvents these leases - will let them transfer favorable lease terms to a third party.

    BTW, I never bragged about residual rates, just made a typo that a low residual is good. I meant a high residual is favorable. I did not get a great residual (.51) but I did buy at $1000 under invoice.
  • hybidzhybidz Posts: 1
    what are the june buy rates on a 2007 a4 2.0 cvt cab
  • audihorseaudihorse Posts: 15
    I am happy that you finally understand the 3rd party issue.

    I did not say AFS was unethical - maybe unfriendly, yes. And I believe the original poster if he says his research indicates other car cos. will sell to 3rd party for same price as they will to lessee.

    BTW, if you or I pay off a lease early- AFS will not charge interest on remaining payments so that is not the issue. Base payments + residual. But at equivalent of 1.29% interest, etc. who wants to do that? And as you noted, none of their terms -prepayment buy out of remaining payments due less interest + set residual (or if at lease end residual only) are avail to 3rd party. I have no problem with their terms - I just leased another Audi - and I fully understand the deal. But I thought Mcwenzel's point of view was perfectly legitimate and that he explained it quite well.

    Very good that you got $1000 below invoice. Did you pay that $495 advertising/prep fee they claim is on their "invoice"?
  • cars0153cars0153 Posts: 45
    This is normal. You and Audi had the contract not a 3rd party. Any manufacturer can sell the car for anything they want other than the original lessee. You're lucky they would even sell the car to him. Most of the time the manufacturer won't.
    They nothing wrong! You avoided payhing sales tax if you bought it.
  • hello all:

    I was at a southern california dealership today and while I was negotiating the price of an '07 a4 2.0t the dealer tried to throw in two fees: an "ad" fee, around $250 or so and an "inspection and preparation fee" around $175. He claimed that he was giving me the invoice price of the car, but with these two fees, it really seemed like $400 over invoice. I have heard something about a coop ad fee that I think is legit, but do dealers generally waive this after some negotiation? With the inspection fee, I feel like this is total bs--any input?

    Also, I was under the impression that maintenance is part of the 4 year warranty, but learned with Audis only the first--5K or 10K? miles--is free. So they tried to sell me the Audi car care program for $590 and said because the residual value is 55% instead of 54% it practically pays for itself. He also claimed they require certain maintenance as part of the lease contract which ends up costing more that $590. What's the deal with this?

    Appreciate your help. Thanks!
  • audihorseaudihorse Posts: 15
    The add on fees are something that Boston area dealers do, too - adding up to $495. Read the previous recent posts on this board for info. Negotiate to under invoice or tell the dealer you don't want to pay those fees and will go elsewhere. Although because every dealer in So Cal is in on these "invoice" add ons it might be easier to ignore the fees and just negotiate to the price you have in mind which should be invoice or below on an 07 (before the fees.) If I had it to do over I would have struck a better deal for myself and I did get my lease at invoice. At least in SoCal I think they go easy on doc fees $45? (for title, reg. etc.) - separate from this advertising/prep add on "invoice" fee. I made them throw in all weather mats and wagon mat to make up for that $300 doc fee in Boston area.

    Audi Care is legit. Audi used to include free maintenance. Now they don't. If your lease is for 36 mos. get the Audi Care. And yes they will make you sign a doc saying you will use the Audi Care because they want to insure that their leased car will be maintained. Since you are paying for it it makes sense you would use it. But because it does bring residual up a point it is worth it.
  • rallyfanrallyfan Posts: 36
    DID YOU LEASE THE A4 I WAS LOOKING INTO THE SAME CAR CAN YOU POST SOME OF THE NUMBERS DID YOU HAVE TO PUT THE 999 DOWN AND THE OTHER FEES THAT EQUAL APPR. 2300 DOLLARS I HEARD THE MAINTENCE FEE IS LEGIT AND A GOOD DEAL CONSDERING THEY CHARGE 100 DOLLARS FOR THE 10K OIL CHANGE AND SERVICE THANKS GOOD LUCK
  • alex320alex320 Posts: 8
    Siman,

    So what was the final downpayment and monthly payment you got from them? I'm thinking about taking the plunge soon but I want to know how much they try to add on. Did you ask them about more mileage and how much that would cost? I'm not sure I could get by on only 10k a year.
  • Well I don't have the numbers in front of me, but it definitely was less than $2,300. The only up front fees I remember are the acquisition fee, registration fee, and then potentially Audi Care, which I was hesitant at first, but now will probably do based on the posts here. I think it came out to around $1,300 or $1,400. I would never put any additional money down, and I'm sure others here agree, if you do you're just throwing it away when you lease. They always want you to put money down because it makes your monthly payments lower. You're never forced to put any money down unless your going through the Audi USA deals but I don't think the current one is all that great.

    As I mentioned, I negotiated to invoice except it was really around $400 over with the ad and inspection fees. When I go to the next dealership this weekend, I'll just aim for $400 below invoice, that way if they throw in the fees it will come out to invoice.

    MF is .00054 (no security deposit but previously financed through volkswagen so they gave me the better rate)

    I didn't end up leasing because they were trying to rip me off on my trade-in but that's another story.
  • They *CANNOT* force Audi-Care on you. It is illegal.

    (It's also a complete Rip-Off, as It *ONLY* covers 15K services (Mostly Oil Changes and a few Air Filters, No Brakes, or other items that Audi used to cover for free(!) Audi says you shoudl change the oil more under "severe service"... Right??? guess what... That's on YOUR dime, Audicare or NOT!

    I just leased an A4 Cabrolet, and yes, the finance person pre-added AudiCare, and I pointed to have it removed. Magically, they dropped it and still leased the car. They only added that we can purchase it later if we change our mind, it'll be the same $590!... wow... amazing).

    IT IS ILLEGAL FOR THEM TO FORCE YOU TO BUY SERVICE CONTRACTS... Google "Magnuson-Moss Warranty Act". That's Federal law, unless they want to do the service for free, they must allow you to have others service your car.

    I called my local German Auto Repair (who works on my other Audi's that are no longer in Warranty), and found out that he will charge me, about $300 for the same work. He'll also validate the service book, no problems.

    Funny is that my local dealer is famous for doing sloppy work. They use cheap Valvoline bulk-oil (not the VW-502 Rated Oil Audi states you must use). My local German Auto Service guy uses German Syntec (VW502 Rated), and a Mann or Maule Oil Filter (German OEM).... He charges a whole $50... out the door, tax and everything. He's got one Audi Trained tech that only works on Audi's and VW's. He's got another who just works on BMWs... no question on who worked on your car.
  • audihorseaudihorse Posts: 15
    I don't think anyone here stated that Audi was "forcing" anyone to buy Audi Care. They increase the residual by one percentage point in a lease to make the $590 cost more palatable. In my case this meant Audi Care cost $209. They did ask me to sign a doc stating that I would get follow thru and get the car serviced at the requested intervals or pay a penalty of $400 - which I think is to cover them in case someone blew off oil changes, maintenance since it is leased car. But since you pay for it in advance you might as well take care of the car - even if you plan to turn it in at end of lease. The maintenance intervals are 5,000 (which is free, period) and then it is in 10k intervals, - so it is 15k, 25k, 35K, and 45k that is covered. Brakes are covered under warranty until 12k - but yes, the previous warranty was much more geneorus and maintenance was free for the length of warranty. They replaced many more wear and tear items, too, but now they only do that until 12k.
  • Since I'm really bad at math can you confirm how you determine how much you save on Audi Care based on the one point residual increase: You take the difference between the residual value with Audi Care and without Audi Care, let's say that's $400. In that case you're really only paying $190 for the program?
  • kyfdx@Edmundskyfdx@Edmunds Posts: 25,881
    If you can negotiate a little bit off of the $590 cost, it might even be less than that.

    If you plan on getting your car serviced at the dealer, it is a no-brainer for a 36 month lease.

    Moderator - Prices Paid, Lease Questions, SUVs

  • audihorseaudihorse Posts: 15
    i will use an example: lets say the car is MSRP at 38,100. The residual is set by AFS on that months' program and is always based on MSRP regardless of the price you negotiate down to - those savings are attained within the leased portion of the car.

    So at 51% residual of an MSRP of it is $19,431 and a bump up to 52% (with Audi Care) is $19,812. That saves you $381. or subtracted from the $590 it is $209 that you are paying for Audi Care. Not a bad deal.
  • rallyfanrallyfan Posts: 36
    WHAT WOULD BE A GOOD LEASE FOR A A4 2.0 CVT APPR 15K A YEAR WHAT IS A GOOD FACTOR RATE AND WHAT IS A BAD ONE
  • I am a few months away from ending my current 24mo lease on an A4 2.0T Quattro. I have two questions:

    1) Is it possible to get the $350 lease termination fee waived if I choose not to purchase or lease another Audi/Volkswagon?

    2) I still have the original Continental brand tires on the car, but may need to replace all four since the tread might be getting close to the 1/8" minimum. If this is the case, how critical is Audi when it comes to the tires at lease turn in time? Should I not replace any and take my chances, or is it best to replace them? My lease contract under Excessive Wear and Use (part 22B) states that I will need to replace any tires that are not part of the matching set of five (including full size spare) with the same brand, size and quality. Will they hold me to this, or can I get away with putting a different/less costly brand? I planned on just going to a local Sams Club and putting the cheapest 235/45/17 tire I can find (Bridgestone Fusion at $95/ea). I am looking at a lot more $ for the same continental tires.
    Any advise would be appreciated. Thanks.
  • audihorseaudihorse Posts: 15
    No you have to pay the 350 if not leasing/buying from them again - they have no incentive to waive otherwise.

    on tires, get the lease inspection (call Audi or local dealer to get inspection co. # in your area) done as soon as you can within the 3 mos. window to turn in date and see if the independent inspector dings you on tires. If he doesn't, they will go by the inspection report even if the tires are bald by the time you turn it in 3 months later. If he does list it on the report he provides to you (they list everything and give you a chance to repair or replace before turn in), you will want to replace or confirm with Audi that each tire charge is $120 if they replace after turn in as it states in Wear and Tear info on Audi web site. The inspector did not enforce the matching spare with me. Depends on the inspector.

    You can put cheaper brand on as long as all four tires match. They don't mean you have to put original brand on - they just want all 4 current tires to match. Probably can get away with older, but good, spare as long as it is same speed rating.
This discussion has been closed.