Audi A4 Lease Questions

CarMan@Edmunds · January 2006

Hi fuddruker. I would not be surprised if Audi Financial Services waived its disposition fee for lessees who lease or finance another Audi through it. If you opt not to lease another I suspect that you will have to pay the charge.

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CarMan@Edmunds · January 2006

Congratulations on your new car, dwdm. Thanks for taking the time to stop in and let us all know the details. Enjoy!

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CarMan@Edmunds · January 2006

Hi rws0131. Given their lack of popularity, I do not personally keep tabs on the details of banks' balloon note programs. sorry that I could not be of more help.

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CarMan@Edmunds · January 2006

Hi clarky81. 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 your car's selling price was.

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CarMan@Edmunds · January 2006

You're very welcome aka5. Audi's new lease program did not come out until around 5th so I don't see how your car's money factor could have increased when your dealer said it did. Besides, Audi's new January lease program has even lower money factors available than its December program did. 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 .00080 and 70%, respectively.

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CarMan@Edmunds · January 2006

Hi ej1111. Audi's December lease program ran through January 4th. Its new January lease program is still very attractive though. If you were to lease a 2006 Audi A4 2.0T Sedan with quattro through AFS right now for 24 months with 12,000 miles per year, its buy rate lease money factor and residual value should be .00080 and 70%, respectively.

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CarMan@Edmunds · January 2006

Nope, the fun is not over, spencermfi. Audi usually takes a few days after its lease program is introduced to add its new advertised lease payments to its web site. It still a very attractive lease program on the A4 in January. If you let me know exactly which car you want, how long you want to lease it for, and how many miles per year you need to be able to drive it I can tell you what the new lease program is like.

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ej1111 · January 2006

Not bad, but definitely more costly then the dec program. Do you have the info for the 36 month 12k miles? Also are hte quattro and fwd rates different?

cjeric · January 2006

That isn't bad at all. Would the money factor and residual be the same for the 2.0 CVT as the quattro with the same terms? What would they be for 10K miles/year? Also, is getting a selling price 1,000 - 1,500 below the MSRP good? I wasn't sure if there is a dealer contribution for 24 months or if it has to be negotiated.

dwdm · January 2006

Car_man,

Why did the residual for 24months, 12k/yr lease drop from 75% (Dec lease) to 70% (Jan lease) for 2006 A4 2.0T sedan quattro?

demars581 · January 2006

Car_Man,
Can you tell me what the residuals and money factors are for a 24 and 36 month lease with 15/k year with Audi's new January program?

Thanks,
Matt

rjlaero · January 2006

Well, the "fun" is somewhat over, as the total money down went from about $950 to $2300 per the Audi website today.

So it'll cost you $1400 more dollars to lease the same car, and it's 36 months instead of 24.

cjeric · January 2006

I thought it was 74% for 12k and 75% for 10k. Some of this reduction is offset by the fact that the money factor was lowered to 0.00080 from 0.00139, so it shouldn't be a big difference.

cjeric · January 2006

Looks like it, but if you use the 24 month lease with the residuals and money factors quoted here and get a decent selling price, you should be able to get about the same deal as in December.

ej1111 · January 2006

im thinking based on the new money factor/residuals your at about a 40 difference in the lease at 24 months based on getting the same selling price as last month. if i could get the same as last month i would probably end up buying this month. but i can wait!

skenterprises · January 2006

CARMAN,
I am negotiating a deal on a 06 A4 Quattro 2.0T with a selling price of around 35,000. I live in TX and know the leasing rules are a little different here and have to pay taxes on the entire car. (Is that correct?, please explain) Can you tell me what I should expect to pay for a 24 month / 15,000 mile Lease under the new plan?

Also, I know the $999 down payment has been added, but with the lower money factor and residual, will that make purchasing the car at the end more attractive? I appreciate any feedback you may have.

Thank-you

ledname · January 2006

I drive 22-24K miles per year but like to have something new just about every year or 2. I am currently leasing an 05 BMW X3. I like the car but miss the standard transmission and now really want navi. I have had my eye on the A4 2.0T Quattro. I am wondering about lease vs buy given my situation. What is the current money factor on these leases for 1, 2, and 3 years? Do they hold value on a trade in maybe 18 months if I wanted to finance?

Thanks!

dl7265 · January 2006

I figured about $20 a month or about another $496 extra over the 24 months. That was assuming just a mere 1K discount in both synario s. So a little negotiating should end about the same.

DL

dl7265 · January 2006

You sound like my co-worker

. Typically high mileage leases or short term purchases are not going to be very favorable in either situation. A diesel vehicle would hold its value the best. At the mileage your speaking of. But atlas Audi is not importing them

. Would you look :shades: enough in a Jetta ?

DL

max_anderson · January 2006

Hello. I am looking at leasing a new Audi A4 Avant, 2.O, 36-months, 12K per year. I test drove one today and started talking numbers. The list was $41K. The salesman told me the lease payment, with taxes (I live in Illinois), rolled in, would be $700.00. He based this off of a residual of 58% and said the money factor was "5%". Are these numbers accurate? Seems a little inflated to me. Any help would be greatly appreciated. Thank you.

ledname · January 2006

Already had a Jetta...2000 GLS VR6...fun car. Thanks for the suggestion!

max_anderson · January 2006

I'm sorry for asking essentially the same question, but if I'm leasing an Audi A4 Avant 2.0T with an MSRP of just over $41K, 36 months, 15K miles, what should the residual and money factor be? The dealer told me 58% on the residual and .0021 on the money factor. Neither seems to jibe with what I'm reading here.

My goal is to negotiate the sales price, but get a residual/MF consistent with Audi finance. With this information, I should be able to accurately determine the lease payment and find out if they are playing games. The "around $700" monthly payment, which when pressed, became "maybe $715" doesn't seem quite right. This is with nothing down except for title, license, seurity deposit, and first month's payment. Taxes (8.75%), which in Illinois means on the whole enchillada, would be rolled in.

Anyone, Car Man, or some other helpful soul, please advise. I need to put a deal together ASAP as my current lease is expiring.

Thanks in advance.

pfje · January 2006

Car_Man,

Happy New Year! Thanks for the help you provide us with.
I would like to know the residuals and money factor for a 2006 Nissan Altima 2.5s and 3.5SE. I am interested in leasing either one for 24 months and 12-15,000 miles/year.

I have negotiated the following prices:
2.5S - MSRP: 22,145 and cap cost: 20,500
3.5SE - MSRP: 25845 and cap cost: 24,500.

I would appreciate it if you could work up approximate numbers for both vehicle. I would prefer to put very little or no money down. Thank you so much.

pfje · January 2006

Car_Man,

Sorry, I will repost #378 in the Nissan Altima lease site.

5510xi · January 2006

Saw the post about .00080 and 70% on the Quattro version. Are these numbers curently the same for the FrontTrak? Thanks.

BB/Florida

kw345 · January 2006

I am looking to lease a 2006 A4 Cabriolet. I have no idea what deals exist. PLEASE please please let me know what people have put down and what your monthly is - much appreciated - THANKS

CarMan@Edmunds · January 2006

Yes, ej1111, Audi has different lease programs for the A4 with and without quattro. If you were to lease a 2006 Audi A4 2.0T Sedan without quattro through Audi Financial Services right now for 36 months with 12,000 miles per year, its buy rate lease money factor and residual value should be .00075 and 57%, respectively. The numbers for an otherwise identical lease of an A4 2.0T Sedan with quattro should be .00080 and 58%.

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CarMan@Edmunds · January 2006

Hi cjeric. Please see my previous post for info on what these cars' current lease programs are like. Audi Financial Services' 10,000 miles per year residual values are 1% higher than its 12,000 miles per resids.

As far as the discount that you mentioned goes, $1,500 off is a very reasonable price for an Audi A4. Audi has cut the margins on it to the point that a base '06 A4 2.0T Sedan with quattro and automatic only has a spread of a little over two grand between its full MSRP and dealer invoice prices. For more feedback on what sort of price you should expect to pay for this car, make sure to stop by the following discussion: "Audi A4: Prices Paid & Buying Experience".

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CarMan@Edmunds · January 2006

Hi Matt. Audi's lease program on the A4 varies by model. For now I will assume that you are interested in a 2006 A4 2.0T Sedan with quattro. Let me know if you want a different version of this car. If you were to lease the aforementioned vehicle 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 .00080 and 68%, respectively. The numbers for an otherwise identical 36 month lease should be .00080 and 56%.

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CarMan@Edmunds · January 2006

Hey skenterprises. Yes, Texas has strange sales tax rules that force lessees there to pay a ton of tax on leased vehicles. As a result, leasing in your state is more expensive than it is in most other parts of the country. To get around this problem, most manufacturers offer balloon notes in addition to leases to Texas residents. Balloon notes, seem to work out better in your area, tax-wise. they are very similar to leases in that they provide consumers with low monthly payments and the option to purchase their vehicle at a specific price after a certain period of time. The main difference between balloon notes and leases is that with leases the bank's name is on your vehicle's title, while with leases yours is. Audi usually has an attractive balloon note program, I believe that it is called its Premier Purchase program. Ask your dealer about it. I can still estimate what your lease payment should be on this car if you would like, but in order for me to do so I need you to tell me its full MSRP.

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CarMan@Edmunds · January 2006

Hello ledname. Audi Financial Services' current buy rate lease money factor for a 1, 2, or 3 year lease of a 2006 A4 2.0T Sedan with quattro is .00080. The highest mileage allowance that AFS publishes residual values for is 15,000 miles per year. You can lease a vehicle through it with more miles than this, but in order to do so you will need to purchase additional miles on a per-mile basis. It is less expensive to do so at lease signing than it is to wait until lease-end and have to pay an excess mileage penalty.

I'm not sure exactly how strong the resale value of the A4 is, but I suspect that it is fairly good. You may be able to find out how well this car holds its value by posting your question in the following discussion: "Real-World Trade-In Values".

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CarMan@Edmunds · January 2006

Greetings Max. Audi Financial Services' current buy rate lease money factor and residual value for a 36 month, 12,000 mile per year lease of a 2006 A4 Avant 2.0T are .00100 and 58%, respectively. I'm not sure what your dealer meant when they told you that this car's money factor is "5%" because AFS' base factor of .00100 is equivalent to an interest rate of around only 2.4%.

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CarMan@Edmunds · January 2006

Thanks pfje. Happy New Year to you as well. I believe that I already responded to your question about leasing a Nissan Altima over in the following discussion: "Nissan Altima: Lease Questions". Please check there for my response.

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CarMan@Edmunds · January 2006

Hey 5510xi. Audi's lease program is different for the A4 2.0T Sedan with and without quattro. Its numbers for a 24 month, 12,000 mile per year lease of the 2WD version are currently .00075 and 69%.

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CarMan@Edmunds · January 2006

Hi kw345. I haven't seen too many community members discussing how much they have paid for A4 Covertibles lately, but we can still discuss how to get a good deal on one. Always remember that the selling prices of leased vehicles are negotiable, just as if you were paying cash for them. Shop around and negotiate the best price that you can on the car that you want. If you are in a cold climate, the fact that we are in the middle of winter will help your cause. Once you have negotiated an attractive price, let me know what it is. This information, along with your car's MSRP will enable me to calculate a lease payment for you using Audi's actual lease program. I can give you the program details if you would like and you can use the formula that is outlined in the following article to work up a payment on your own once you know what the selling price is: Calculate Your Own Lease Payment.

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max_anderson · January 2006

Thanks Car_man. That is great information. Two questions: if I bump up the miles to 15K, does that change the residual (58%) or the MF (.00100)?

Also, now that I know that this guy was playing games with me, should I move on to a different dealership? More than doubling the MF seems pretty shady to me.

the_dude1 · January 2006

I'm looking at an Audi A4 3.0 Cabriolet with a MSRP of 52,960
36 month lease 12k miles year.
What would be a good lease rat for this vehicle.

p.s. has anyone seen the A4 Cab IN SILVER W/RED LEATHER ? iF SO HOW DOES IT LOOK ?

5510xi · January 2006

Many thanks for your response, indicating
.00075 and 69% at 12K on A4 2.0T FrontTrak CVT.

An e-mail inquiry to the dealer on same produced a response of
.00125 and 69% at 12K

Not sure what hymnbook they're singing from. How can I find out what finance sources these numbers represent, as well as find out what others are available?

Also - if you could take a sec to take me through "MSD 101" I'd be in your debt. Don't really understand how it works. Does dealer accept it in lieu of deposit, then pay you interest for holding the money (ref the 15% I'm seeing in postings...)? Is this unique to Audi?

Sorry to be so daft; this is the first lease I've ever had to negotiate. Many thanks.

Sign me,
:confuse:

edwardsf · January 2006

I too would like the answers to your MSD questions.

According to previous posts here, if you finance with AFS, AFS sets the money factor and the dealer cannot change it. Apparently, the dealer CAN change the residual - which makes your situation even stranger.

skenterprises · January 2006

:surprise: Thank-you Carman for the information. I did some more research and Texas does have some odd leasing laws. To follow up, the MSRP is $36,691 and the selling price is $34,900 for a 06 2.0 Quattro 6 spd. I am looking to lease or in my case i guess (state of TX), an Audi Premier Purchase Plan, for 24 months, 15,000 miles a year. Can you tell me if the Premier Purchase Plan has differences or disclaimers I should be mindful of compared to a regular lease? I want to avoid any surprises. Also, is purchasing the car afterwards the same as a lease? Does the Audi MSD's also apply to lower the money factor in a Premier Purchase plan? I appreciate any feedback you may have, thanks

dl7265 · January 2006

You own the car.You can sell it at any time. (could be upside down of course) Last spring when we were shopping the MF of the Premier purchase was higher than the Lease offers by good bit. That is a decent discount on the sales price in TX. Where are you shopping at ?

DL

aka5 · January 2006

Thank you very much for getting back to me. I will let you know what happens. Once again, thank you.

CarMan@Edmunds · January 2006

You;re very welcome, Max. Changing the mileage allowance from 12,000 to 15,000 miles per year would not have any impact upon your car's money factor, but its residual value would be 2% lower.

It definitely wouldn't hurt to shop around a little bit. By doing so, you are more likely to get the best possible deal on the car that you want.

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CarMan@Edmunds · January 2006

Hey Dude :shades: . If you were to lease a 2006 Audi A4 3.0 Cabriolet through Audi Financial Services right now for 36 months with 12,000 miles per year, its buy rate lease money factor and residual value should be .00235 and 60%, respectively.

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CarMan@Edmunds · January 2006

Hi 5510xi. The numbers that I provided you with are correct for a lease through Audi Financial Services for a consumer who pays a security deposit and AFS' $575 acquisition fee. AFS will waive the security deposit waived in exchange for a .00015 money factor increase and the acquisition fee for a .00050 money factor increase. If you are being asked to pay both of these items at lease signing, the dealer that you are working with is most likely marking your car's money factor up to add additional back-end profit to your deal. You should be able to get them to lease you this car using the base money factor if you confront them with AFS' factor.

Most banks that lease luxury vehicles give lessees the option to make multiple security deposits on vehicles. These banks hold onto your additional deposits for the duration of your lease. They do not pay you interest on your deposit, but instead they reduce the money factor that is used to calculate the interest portion of your lease payment by a certain amount for each additional deposit.

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CarMan@Edmunds · January 2006

Hi edwardsf. Dealers definitely CAN change vehicles' lease money factors by marking them up to add additional profit to deals, but they CANNOT alter banks' published residual values.

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CarMan@Edmunds · January 2006

You're very welcome, skenterprises. The main difference between Audi Financial Services' lease and balloon note programs, other than the differences that I mentioned earlier, is that it uses money factors to calculate the interest portion of lease payments and interest rates to calculate the interest portion of balloon note payments. Your option to purchase your leased vehicle should be about the same, regardless of whether you lease or get a balloon note on it. I don't believe that multiple security deposits are available on balloon notes, but I am not positive that this is the case. You will have to ask your dealer to find out for certain.

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CarMan@Edmunds · January 2006

No problem, aka5. Thanks for offering to let us all know how things turn out.

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edwardsf · January 2006

Thanks, you da (Car)man. Regarding AFS's current deals:

1) 24 month. You cited the AFS MF (.00080) and the Residual (69% - CVT or 70% - Quattro). So given that the dealer can mess with anything but the residual, does this mean that they can move the MF up or down and then add a down payment on to that?

2) Regarding the down payment (e.g. $999 for the 36 month lease), can I tell them that I will gladly pay a MSD of $999, instead of a down payment? My understanding is both will reduce the monthly payment but I actually get back the MSD at then end of the lease!

aka5 · January 2006

Hi Car man,
I spoke with the car salesman today! He told me the car will be here in February. When i signed for the car it was $36,987(buying price) A4 white,sunroof pckg Quattro,tiptronic,tech + bluetooth and nav. Out of pocket $2200 put down in order to get monthly payment down to $433 incl 7% tax (FL.)At the time the MF was 1.39,residual 75%, 12,000 miles per year but thinking about doing it on 15,000 per year, 2 yr lease. Is this right? Also if i do it on 15,000 miles per year how much would the monthly payment be please? I have an Audi A4 1999 White Quattro,tiptronic,52,500 miles,one previous owner,transferable warranty,leather ,tape + 10 disc CD. Full maintenance history,done by Audi and new turbo done by Audi too,new tyres too. I have really looked after this car. I put it in Auto trader for $11,500 but if it comes down to trading it in, how nmuch do you think i should get for it, please Car man? I know this is a lot of info to ask for and you are very very busy but help me out please Car man. :confuse:

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