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Audi A4 Lease Questions

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    sje3333sje3333 Member Posts: 13
    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
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    kyfdxkyfdx Moderator Posts: 237,254
    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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    sfhondapilotsfhondapilot Member Posts: 7
    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.

    :)
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    audia4smaudia4sm Member Posts: 1
    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%.
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    edwardsfedwardsf Member Posts: 190
    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?
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    sfhondapilotsfhondapilot Member Posts: 7
    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.
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    edwardsfedwardsf Member Posts: 190
    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....
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    talon4x4talon4x4 Member Posts: 21
    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?!?
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    maybeanaudiguymaybeanaudiguy Member Posts: 1
    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.
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    talon4x4talon4x4 Member Posts: 21
    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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    sfhondapilotsfhondapilot Member Posts: 7
    Yes, we still have the X3. It is a great car. It's my spouse's daily driver. My DD is a Pilot and my weekend car is an M3Cic. The A4 is for my daughter. Her prior car, a 2003 Matrix, was declared a total loss after the car was rearended. So, the A4 represents a significant upgrade, for her.
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    govols2govols2 Member Posts: 9
    Now, for a limited time, Audi is offering an exceptional lease through Audi Financial Services on a nicely equipped 2006 A4 3.2 quattro® Sedan with 6-Speed Automatic Transmission, Sunroof Package, and Premium Package. (See complete details below.) This offer is good through November 30, 2005 so hurry into your local Audi dealer today to take advantage of these winning savings.

    2006 A4 3.2 Sedan with quattro
    $399 per month
    24-month lease*
    ---------------------------------------------------
    Down payment $1,400
    Refundable security deposit $0
    Acquisition fee $575
    First month's payment $399
    ---------------------------------------------------
    Amount due at lease inception $2,374

    24months
    20k miles

    How good is this deal off of their website?

    Thanks,
    David
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    sje3333sje3333 Member Posts: 13
    Just for information/negotiation purposes:

    Car - 2006 A4, Quattro, 6sp, Premium package, Sunroof package, Bose Sound and Sport Suspension

    MSRP - $34,960
    Invoice - $32,808 (plus port & advertising of $395)
    Purchase Price - $33,508 (or $700 over invoice)
    Money Rate - .00067 (Multiple refundable deposits totaling $3,750 reduced money rate from .00139)
    Term - 24 months
    Lease Payment - $343.68 before tax
    Other Fees:
    Aquisition Fee - $575
    Documentation - $239
    DMV Plate transfer - $85
    Down Payment - $0
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    wco81wco81 Member Posts: 590
    He's claiming he has to pay to transport these. Both would be 2.0T with CVT or Tiptronic:

    1) 2.0T CVT, Quartz/Ebony, Premium, Sunroof, Tech-Bluetooth:

    MSRP: 35,210
    Cap Cost: 33,776
    Monthly: 404.52 plus tax

    Due at least inception:
    - 1st month: 437.89
    - Tax: 51.15
    - DMV: 270.00
    Bank Fee: 575.00
    Doc Fee: 45.00

    TOTAL: 1,379.04

    2) Quattro Tiptronic, Silver/Ebony, Premium, Sunroof, Tech/Bluetooth

    MSRP: 37,160
    Cap: 35,689
    Monthly: 421.55 plus tax (24 months)

    Due at inception:
    - 1st payment: 456.33
    - Tax: 51.15
    - DMV: 283.00
    - Bank Fee: 575.00
    - Doc Fee: 45.00

    TOTAL: 1,410.48

    I told him I knew about the AFS terms of 76% and .00139 buy rate. But he didn't identify the MF.
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    wco81wco81 Member Posts: 590
    OK, just ran the numbers on leaseguide.com assuming the 76% residual and .00139 MF. Sales tax here is 8.25%.

    He's about $30-35 high on the FWD and $20-25 high on the Quattro.

    So he's obviously not using the same MF. The selling prices for both are below the TMV and the Carsdirect prices however.
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    4doorhunter4doorhunter Member Posts: 3
    I received a first offer from an Audi Dealer in NJ for a 2006 A4 2.0T Manual 6 with Premium & Sunroof packages. This is the email offer, but I'm confused b/c his MSRP/List seems wrong compared to what I find on Edmunds for this car ~
    MSRP $34,610, $1,045 DISCOUNT, CAP COST $33,565.
    Lease 24 Months Mo. $400.95
    $2,392.80 down payment
    $25,957 residual
    12,000 miles per year.

    He said he used MF of .00139 and 75% residual.

    I'm looking for guidance. My math skills may be faulty, but this looks high.
    :confuse: ">
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    mdanemdane Member Posts: 10
    Can you tell me whether the 24 and 36 month programs also apply to the Avant (station-wagon version) of the Audi?
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    wco81wco81 Member Posts: 590
    OK, another dealer has a FWD, Silver with "grey" interior (I think Audi calls it Platinum), Premium, Sunroof and Sirius. MSRP is 34,285 and the selling price quoted is 32,734.

    Seems good but when I ask him about MF he's using, the monthly or residual, there is no response. But I also let him know that I know about the 75 or 76% and .00139 buy rate.

    So I would take it he's not interested in selling it at those terms.
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    nvnicknvnick Member Posts: 50
    Car man -

    I see these great residuals of 76% & 75% for 24 months on the A4 Quattro; what about the FrontTrak? Can you post 24/36/39 month residuals & money factors (if different than the .00139)for a 12k and 15k lease? Also, do you have A3 rates? No current postings on the A3 leasing questions forum. THANK YOU!

    Would love to know how you are able to obtain all manufacturers lease rates, as I have freind/family/co-worker asking me all the time what's the best car/best deal questions. I always have to check Edmunds, specifially your posts, for the best deal part. Great service!!!
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    wco81wco81 Member Posts: 590
    OK, another dealer has a FWD, Silver with "grey" interior (I think Audi calls it Platinum), Premium, Sunroof and Sirius. MSRP is 34,285 and the selling price quoted is 32,734.


    He's quoting $1,272.43 total drive off and $375.09 plus tax per month.

    Those figures seem to be exactly around the 75% residual for the 2-year, 10k miles FWD lease with .00139 MF, if I'm not mistaken?
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    tlabrietlabrie Member Posts: 5
    Car_man, do you have the residuals for a 24 or 36mo lease for 15k/year lease on the 3.2? I have gone back a few pages and cannot find if they have been posted. Also, is the MF the same through AFS for the 3.2 as the 2.0?
    Thx
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    4doorhunter4doorhunter Member Posts: 3
    I figured out the dealer failed to note the $750 paint option and $150 Wheel option, so the MSRP is now correct. Now, I just need to get him closer to invoice.
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    aussiem8aussiem8 Member Posts: 27
    I am leasing a 2006 3.2 A4 quattro with 15k miles/yr for 3 yr lease. Residual is 57% and MF is 0.00165. Security deposit currently being waived. No money down either. Delivery is this Wed.
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    govols2govols2 Member Posts: 9
    What is the base payment workout to be?
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    tlabrietlabrie Member Posts: 5
    Thanks a lot aussiem8.
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    magmirmagmir Member Posts: 17
    I think someone else already asked this, but how is the current lease deal Audi is offering? I've never considered leasing before (in fact, I thought bad things about it), but it seems like a good deal. Also, the thought of taking 25k out of various investments, plopping it as a down payment, and then making payments for a few years doesn't appeal to me. I would rather invest my money and maybe in a few years go that route. So anyway, is this current deal a good one? I looked at the some various other cars and this one seemed to be the best. I'll be coming from a 10 yr. old civic w/ cloth seats and roll-up windows, so anything will be really nice. Thanks!
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    4doorhunter4doorhunter Member Posts: 3
    I'm wondering How much I should expect to pay for going from the 10K offer to 12K miles per year. Is there any general practice?
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    j0916j0916 Member Posts: 9
    At the moment it's 1% of MSRP, divided by 24 months plus finance charge and taxes as the residual drops from 76% to 75%. Should be $15-20 a month.
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    wrkaholicwrkaholic Member Posts: 1
    I am pricing a 2006 A4 Cabriolet 1.8 metallic paint with premium package and tire monitor to lease for 3yrs and 15k miles p/yr. The best lease deal was $610 per month. I am prepaying sales tax and they are waiving security deposit. Am I being quoted a fair price? I live in Long Island NY.
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    blueitblueit Member Posts: 3
    Greetings!

    Noticed a bit of talk about pre paid leases. I'm in the process of doing just that. Need a bit of guidance though.

    2006 Audi A4 2.0 OT FrontTrak
    Premium Package
    Leather
    Sunroof
    Wood Grain

    339.00 month
    Acquisition 575.00
    Total due at lease inception 914.00 +T-T-DF
    10,000. miles yr

    I'm not real sure what the actual sticker is (and understand that info may be needed to fully answer my question).

    I would like to walk in, sign and make one full payment. What is the best number I could hope for?? With tax the total payments and acq-fee is 9,239.00
    I would really like to get that down a bit. Any thoughts or advise???

    Thank you very much!!

    JB
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    aussiem8aussiem8 Member Posts: 27
    $560 pretax. Negotiated to $400 over invoice. Picked mine up 2 days ago and it is sweeeet. Dolphin grey w/ebony, sunroof, premium, technology, cold weather packages. Drives on rails.
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    leasemeleaseme Member Posts: 14
    Headed to dealer tomm - trying to obtain
    Audi A4 - 2006 2.0 Quat. Auto w/ Premium and Sunroof Black/ Black and 12k/yr

    was quoted all in (taxes, lic. fees, etc.) of $460/ month or a one payment lease of $10,080 btw...how much are all of these fees?

    are either of these good deals - claims he is using .00139 and 75% residual and selling price is $33,700 - which is about $1,200 over invoice - is this good? is it worth negotiating more - could really use some advice as I only have until tomm...
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    mictlanmictlan Member Posts: 4
    Does anyone know if Audi will be getting rid of this current leasing specials after November? Will they be offering a new lease rate? Better? Worse? I want to get my audi, but not sure i'll be able to do it before the holidays. Does anyone have any suggestions? Should I take my chances and wait? Or bite the bullet and do it before November ends?
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    rws0131rws0131 Member Posts: 27
    Can anyone please tell me how I save money by doing a one-time lease payment for 24 months? I'm trying to figure out what the difference is in total money paid in one time is versus paying the total for 24 months. What is reduced? Interest, taxes, cap cost????
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    kyfdxkyfdx Moderator Posts: 237,254
    The money saved is usually through a discounted money factor.. They calculate the lease as though it were a no money down lease, using a money factor that is lower than the standard money factor for the lease... Then they add up the payments, and that is the one-time amount that you pay upfront, along with any acquistion fees and title/license fees...

    regards,
    kyfdx
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    CarMan@EdmundsCarMan@Edmunds Member Posts: 38,514
    Hi mictlan. Yes, Audi dealers can lease used vehicles to consumers. I know that Audi Financial Services has a lease program for Certified Pre-Owned Audi vehicles. Unfortunately, given the lack of popularity of used vehicle leases I do not personally keep tabs on banks' used vehicle lease programs and cannot tell you what sort of a lease payment you should expect on this car. I can tell you though that used vehicle leases often do not turn out to be as good a deal as one would think. This is because automakers provide support on new vehicle leases in the form of cash incentives, low interest rates, artificially inflated residual values, or a combination there of to help promote new vehicle sales. Used vehicles usually have little, of any lease support available on them. As a result, it often ends up being almost as expensive, or possibly even more expensive, to lease a used vehicle than it would be to lease an otherwise equivalent new model. Make sure you get a quote on how much it would cost you to lease a brand new Audi A4 before you agree to lease the used one that you are considering.

    Car_man
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    CarMan@EdmundsCarMan@Edmunds Member Posts: 38,514
    You're welcome edwardsf. You are right to look at the fees that you mentioned as part of the dealer profit. Even if they technically are not profit items, they still are part of the total price that you are going to pay for this car, so it really doesn't matter. The acquisition fee of $575 that you were quoted is right on the money, which is good because it means that the dealer that you are working with is not trying to mark it up on you to add hidden profit to your deal. The base acquisition fee goes straight to Audi Financial Services and the dealer does not profit from it. Dealers are not required to charge any sort of prep fee.

    Car_man
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    CarMan@EdmundsCarMan@Edmunds Member Posts: 38,514
    You're welcome effort. As far as the 24 month lease program for this car goes, Audi Financial Services' current buy rate lease money factor and residual value for a 24 month, 15,000 miles per year lease of a 2006 A4 2.0T sedan with quattro are .00139 and 73%, respectively. 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 $415.

    Car_man
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    CarMan@EdmundsCarMan@Edmunds Member Posts: 38,514
    I'm glad that you find this discussion so informative, Steve. Multiple security deposits are a great way to lower a vehicle's lease payment. They certainly are a lot better than making a down payment because you actually get the security deposits back at lease-end. I also estimate that you will get getting over a 13% return on your money by making the additional deposits. That's even a better return than one can get on GM and Ford Corporate Bonds right now :P . If you have the extra money, I don't see any reason not to make the additional deposits.

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    CarMan@EdmundsCarMan@Edmunds Member Posts: 38,514
    Hi audia4sm. I believe that there is around a $2,500 margin between the full MSRP and dealer invoice prices of the vehicle that you described. You are being offered a $1,565 discount on this car. This is around $900 to $1,000 over invoice, which is not bad. If you are in an area where there is a ton of competition for your business, I would not be surprised if you were able to beat this price by a couple hundred dollars, but again it is a decent price. For additional feedback on A4 pricing, you may want to stop by the following discussion: "Audi A4: Prices Paid & Buying Experience".

    As far as the lease program that you were quoted goes, the money factor and residual value that the dealer told you are right in line with Audi Financial Services' numbers for this car. This is good because it means that the dealer that you are working with is not trying to make any additional back-end profit on this aspect of your deal.

    Car_man
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    CarMan@EdmundsCarMan@Edmunds Member Posts: 38,514
    Hi talon4x4. In your post you stated that the A4 that you are interested in leasing has an MSRP of $35,440 and that $1,186 of the proceeds from your trade will go towards reducing that price. Is that the only reduction in your car's selling price? I ask because the selling prices of leased vehicles are negotiable, just as if you were paying cash for them. you definitely do not have to pay full MSRP for this car right now. Shop around and negotiate as low a price as you can for this car and then have the dealer calculate a lease payment on it for you. Also, you really shouldn't use any of the proceeds from your trade in as a down payment for your new lease. Have the dealer cut you a check for all of the equity that you have in your car. 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 a thousand dollars down, or had made absolutely no down payment at all.

    Another thing that I noticed about this deal is that the money factor that the dealer is using to calculate your car's payment is a too high. Audi Financial Services' current buy rate lease money factor for a 24 month lease of a 2006 Audi A4 2.0T sedan with quattro is only .00139, assuming that you qualify for its top credit tier and pay a security deposit and its $575 lease acquisition fee. It sounds to me as though the dealer that you are working with may be trying to mark this car's base money factor up to add additional back-end profit to your deal.

    Car_man
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    CarMan@EdmundsCarMan@Edmunds Member Posts: 38,514
    Hi maybeanaudiguy. Yes, the fact that the vehicle that you are interested in is a wagon will cause it to have a different lease money factor. The .00185 factor that you were quoted for this vehicle is right in line with Audi Financial Services' buy rate factor for it. So, that's as low as it is going to get, unless you make additional security deposits to buy your vehicle's factor down.

    As far as the selling price goes, a base 2006 Audi A4 Avant 2.0T has a spread of a little over $2,200 between its full MSRP and dealer invoice prices. You are only being given a discount of $685 on this car. So there is a little room to play there. I don't know what the supply / demand for this model is like in your area though.

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    CarMan@EdmundsCarMan@Edmunds Member Posts: 38,514
    Hi David. The lease that you saw advertised on Audi's web site is a reasonable deal, but like most manufacturers' advertised lease payments I suspect that it leaves a little meat on the bone so to speak. If you think about it, it makes sense. Audi is not going to advertise the lowest possible deal on a vehicle. If it did, it's dealers would go bananas. I suggest that you shop around and try to negotiate as low a selling price as possible on the car that you are interested in. Once you have reached an attractive price, have the dealer work up a lease payment on it for you. There is a good chance that you will be able to negotiate a lower selling price than the one that this deal is based upon.

    Car_man
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    CarMan@EdmundsCarMan@Edmunds Member Posts: 38,514
    Thanks for taking the time to share the details of your deal with everyone, sje3333. There's nothing like real world examples to give consumers an idea of what they will have to spend to get the vehicle that they want.

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    CarMan@EdmundsCarMan@Edmunds Member Posts: 38,514
    Hi mdane. Audi Financial Services' lease program for the A4 Avant is different than its program for the A4 sedan. If you were to lease a 2006 Audi A4 2.0T Avant through Audi Financial Services right now for 24 months with 15,000 miles per year, its buy rate lease money factor and residual value should be .00185 and 75%, respectively. The numbers for an otherwise identical 36 month lease should be .00185 and 61%.

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    CarMan@EdmundsCarMan@Edmunds Member Posts: 38,514
    Hi nvnick. The residual values for the 2WD version of the A4 are only 1% lower than the ones that I have mentioned previously for the quattro version. Audi Financial Services is providing a slightly lower money factor, .00127, on the 2WD version to make up for the lower residual values. I just answered a question about leasing an A3 earlier this morning. Stop by that discussion and see if what I posted answers your question. If not, let me know and I will try to answer any questions that you have on that model in that area.

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    CarMan@EdmundsCarMan@Edmunds Member Posts: 38,514
    I sure do, tlabrie, and I would be happy to help you out. This car's lease program is not the same as the 2.0T model's. If you were to lease a 2006 Audi A4 3.2 quattro sedan through Audi Financial Services right now for 24 months with 15,000 miles per year, its buy rate lease money factor and residual value should be .00165 and 72%, respectively. The numbers for an otherwise identical 36 month lease should be .00165 and 57%.

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    CarMan@EdmundsCarMan@Edmunds Member Posts: 38,514
    Greetings wrkaholic. 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.

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    aka5aka5 Member Posts: 24
    Hi,
    I have been offered this lease deal on an Audi A4 2006. Sunroof pckg,dolphin gray paint,quattro,tiptronic and navigation for $34,260 (MSRP$35,460),money factor 1.47 and the residual is 74%. Is this a good deal?. Need advice on this as i am about to do it.
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    mazdabuyermazdabuyer Member Posts: 10
    Hi Car-Man,

    I am still looking for an A4 lease, and I have been offered this deal on a 2006 A4 in Light Silver with Premium Package, Sunroof Package, Technology Package, and Navigation with an MSRP of $39,660. The dealer insists they made a mistake with the calculations and the monthly payment should be more, but as I have it all in writing they said they would stand by the deal:

    Lease Period: 24 Months
    Mileage: 12,000 per year
    Residual: 75%
    Money Factor: 0.00149
    Acq Fee (Financed): $575
    Total Down: $2.389.21
    Monthly Payment inc Tax: $433.62.

    I am supposedly getting the car at $500 above invoice, but when I price it out on Edmunds it seems like more than $500. I am unsure whether to just take the deal, or question it if they are trying to sneak in a few extra dollars profit on me.

    Thanks in advance for your help!
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