Howdy, Stranger!

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





Audi A3 Lease Questions

2456712

Comments

  • CarMan@EdmundsCarMan@Edmunds Posts: 38,515
    Congratulations on your new car, wflasales!

    Car_man
    Host
    Smart Shopper / Prices Paid Forums
  • cvpacguycvpacguy Posts: 14
    I've driven the A3 with DSG and absolutely love it, but I got a quote from an auto broker today that just shocked me because it was so bad...I'm curious if you think this is what I should expect from a dealership. Also-- does anyone know if this pricing on the website is accurate in terms of options and such?

    On a 2006 A3 2.0T DSG Lava Grey with Premium package with an MSRP of 29,415 (including dest. charge) he quoted me a MF of .00236 and a 48% residual! The lease payment he quoted ended up being something ridiculous like $570 a month, which is really discouraging considering I've got my heart set on this car.

    Does anyone know if this is even remotely close to what I'd get at a dealership? Some friends of mine used this guy to get a deal on a Mercedes and recommended using him, but after this conversation I'm thinking I'll just contact the internet sales manager at the dealership. Thoughts?
  • andres3andres3 CAPosts: 5,343
    That is a bad lease deal, and all lease deals on A3's aren't very good.

    Tell them to sell you the car (leased) at price of $28,000. They should be able to do that. That should lower the monthly fee. Also, putting more down initially helps.
  • CarMan@EdmundsCarMan@Edmunds Posts: 38,515
    Hello cvpacguy. Audi Financial Services' lease program on the 2006 Audi A3 is not very attractive right now. You never mentioned how long you want to lease for or how many miles per year you need to be able to drive, but if you were to lease a base 2006 A3 2.0T through AFS right now for 36 months with 15,000 miles per year, its buy rate lease money factor and residual value should be .00300 and 50%, respectively.

    In your post you mentioned this car's MSRP, but never said anything about its selling price. Always remember that the selling prices of leased vehicles are negotiable, just as if you were paying cash for or financing them. Make sure to negotiate a decent discount on the A3 that you are considering before having a lease payment calculated on it. For feedback on how much you should pay for this car right now, make sure to stop by the following discussion: "Audi A3: Prices Paid & Buying Experiences".

    Car_man
    Host
    Smart Shopper / Prices Paid Forums
  • niasnias Posts: 4
    in Southern California....I'm into finance or lease....I'm still trying to figure out what's better in this car's case.
  • rjlaerorjlaero Posts: 659
    The lease rates are pretty bad right now on the A3. You really need to buy the A3.

    You can lease a 36k A4 2.0 Quattro cheaper than you can a 30K A3.
  • kurtamaxxxguykurtamaxxxguy Posts: 1,752
    Any theory or comments as to why the A3 lease rates are bad?

    Is the A3 Sales volume too low for attractive lease packages from financial providers?
  • rjlaerorjlaero Posts: 659
    Maybe things will be different for 2007. 2006 was the 1st year for the A3 in the US. I doubt Audi was going to stick their neck out too far and put a very high residual on the A3 and cut the money rate factors down on a first year production vehicle.

    Also, the high-ups at Audi claim their profit margins are quite small on the A3, and it's mostly a break-even car here in the US. It's designed to get people into the Audi brand at a reasonable price and turn them on the bigger and higher end Audis down the road.

    It's tough to spiff a car with incentives when there's so little profit in the car to begin with.

    But the demo cars and used A3's that have been coming through the manheim auctions and such have been going for pretty good money though, so it's a good sign that a fairly high resale value will give the A3 lower lease payments down the road.
  • kurtamaxxxguykurtamaxxxguy Posts: 1,752
    If the A3 is truly a "break-even" car, then the production cost must be hideous. Then again, VW and Audi have repeatedly commented how expensive their German factories are to run.

    As for "bigger and higher end" Audis, that's not an option for me as I like hatchbacks, and Audi doesn't have one in a higher price bracket. But $40K for a small hatch is a lotta bucks.
  • Does anyone know the money factor and residual on '06 A3 S Line models for July? Any incentives? Finally, when are the '07s supposed to come out. Thanks in advance.
  • CarMan@EdmundsCarMan@Edmunds Posts: 38,515
    Hi phaedrus76. I know that all 2006 Audi A3 models that are leased through Audi Financial Services this money have a buy rate lease money factor of .00319. I am not sure what the residual values for the S-Line is like though. I believe that the addition of this package to models has some sort of impact upon their residual values, like a one point reduction or something like that. Don't quote me on that though. Audi just recently published a lease program for 2007 A3 models, so they should begin arriving at dealers very soon.

    Car_man
    Host
    Prices Paid Forum
  • moneymazmoneymaz Posts: 1
    Is there any word on new and (reasonable) lease terms for the 2007 A3's? Any idea when this will be announced?
  • nyaudimenyaudime Posts: 8
    What information do you have on the lease program for 2007 A3 models?

    Also, what is the money factor and residual for an A3 2006 with 12K miles for 36 months?
  • wdrauchwdrauch Posts: 22
    I would be interested in any lease info on the 07 model too. I really like the A3 and would like to lease, but find it hard to justify when an A4 Avant can be leased for less money!

    In order to get the A3 optioned the way I want I would need to order it, but depending on how good the leases are I may want to order more or less extras.
  • CarMan@EdmundsCarMan@Edmunds Posts: 38,515
    Hello moneymaz. Audi has finally introduced a lease program for the 2007 A3. Its lease program for this car varies by trim level, term, and mileage allowance, so I'll have to make some assumptions. For now I will assume that you are interested in a 36 month lease of a 2006 Audi A3 2.0T base model with 15,000 miles per year. The buy rate lease money factor and residual value for the aforementioned lease are .00325 and 52%, respectively. Let me know if you want the numbers for a different set of variables.

    Car_man
    Host
    Prices Paid Forum
  • CarMan@EdmundsCarMan@Edmunds Posts: 38,515
    Hello nyaudime. This car's lease program varies by trim level. For now I will assume that you are interested in the base model. Let me know if you want a different version. Audi Financial Services' current buy rate lease money factor and residual value for a 36 month lease of a 2006 A3 2.0T base with 12,000 miles per year are .00325 and 53%, respectively. The numbers for an otherwise identical lease of the 2007 version of this car are .00325 and 54%.

    Car_man
    Host
    Prices Paid Forum
  • wdrauchwdrauch Posts: 22
    Could you provide MF and residual for 07 42-month lease?

    thanks!
  • Does anyone know the money factor and Residual for 2006 A3 2.0T manual for: 24/15K and 36/15K leases? That would be tremendously helpfull info if anyone has it. So far the MF's I've been qouted are really bad. Maybe this is a better car to buy? Thanks!
  • wdrauchwdrauch Posts: 22
    Yes, the A3 is a bad car to lease.

    I have ordered on '07 model and have been going through the calculations comparing leasing to buying. When I calculate the loan payment schedule (using Quicken) for 60 and 72-mos loans I have found that after 36 months I owe less principal on the vehicle than Audi's 36-month residual value.

    Basically, it seems that if you took the 60-month 4.9% financing that Audi offers on the 06 you should be able to trade it in after 3 years for more than you would owe.
  • Here you go, wdrauch. I haven't seen this car's 42 month lease program, so here is its 39 month program. Audi Financial Services' current buy rate lease money factor and residual value for a 39 month lease of a 2007 A3 2.0T base model with 15,000 miles per year are .00336 and 47%, respectively.

    Car_man
    Host
    Prices Paid Forum
  • I can help you out, chainsaw2. You're right, this car's lease program is not very good right now. Audi has not been providing much support on the A3. Audi Financial Services' current buy rate lease money factor and residual value for 24 month lease of a base 2006 A3 2.0T with 15,000 miles per year are .00316 and 58%, respectively. The numbers for an otherwise identical 36 month lease are .00316 and 46%.

    Car_man
    Host
    Prices Paid Forum
  • Has there been any info or comments that suggest why the A3 lease program is so weak?

    What might be the primary factors be in determining this poor lease value?
  • rjlaerorjlaero Posts: 659
    The leasing issue has been discussed in deal on here before, so you might want to scroll back and do some reading.

    But to give you the short version again, the A3 is a low volume car for Audi. It's expensive to manufacture in Germany, and there's not a lot of profit in the car. It's meant to bring people into the Audi brand at a reasonable price. A 10,000 a year volume car is not going to get much lease support. They don't need to move 50,000 a year and subsidise the money rate and residuals like a 3 series BMW or the A4.
  • Thanks for the short version.
    A pity Audi cannot get the A3's manufacturing costs down.
  • i offered 29,900 for a :

    A3 2.0
    DSG
    LAVa pearl
    cold weather
    premium package

    they did not accept my offer because i wanted the sirius thrown in. am i asking to much? they let me walk out over this and i was ready to buy right then. should i take it 29,900 and just do aftermarket sirius?

    THanks for your help
  • I've just been quoted the following lease offer:

    2007 A3 premium. $31,400 net, 36 month term, residual $17219, MF .00435, 10K miles per year.

    The MF seems VERY high to me. Doesn't .00435 work out to be almost 10% ?!

    Please advise,
    Thanks,
    Scott
    :confuse:
  • Never mind, they came down to a MF of .0028 but that is still pretty high. I decided to finance the car over 60 months instead and sell the car in 3 years.
  • Hi ridgeback. .00435 is a TERRIBLE lease money factor. Audi Financial Services' buy rate money factor for this car, .00314, is bad enough. If you really want to lease an A3, insist that the dealer you are working with uses its buy rate money factor to calculate your monthly payment.

    Car_man
    Host
    Prices Paid Forum
  • Ahhh, that will teach me to respond to a post before scrolling down the entire page. I think that you made a wise decision, ridgeback. Audi's lease program on the A3 is pretty weak right now. Enjoy your new ride!

    Car_man
    Host
    Prices Paid Forum
  • Full details are on the AudiUSA site, but here is the fine print of it:

    *24-month closed-end leases offered to qualified customers by Audi Financial Services through participating dealers. Must take delivery by January 2 , 2007. Required dealer contribution could affect final negotiated transaction. Lessee responsible for insurance and may have some financial liability at lease end. Lessee responsible for $0.25/mile over 15,000 miles per year and a disposition fee of $350 due at lease end. Rate based on $33,510.00 MSRP of 2007 A4 2.0T quattro with Tiptronic transmission, Premium Package, heated front seats and destination charge. Purchase option at lease end for $24,127.20. See dealer for details.

    Is this a worthwhile lease option?
Sign In or Register to comment.