Audi A6 Lease Questions

CarMan@Edmunds · August 2006

Thanks for the additional information, dtawil. OK, so you leased a 2006 Audi 3.2 quattro with an MSRP of $48,640 and a selling price of $45,000. A base '06 A6 3.2 Sedan has a spread of $3,329 between its full MSRP and dealer invoice price. You were quoted a discount of $3,640 on the specific model that you are interested in. This looks like a good price to me. This car's lease payment will vary depending upon how long you lease it for and its mileage allowance. Assuming that you are leasing it for 36 months with 12,000 miles per year, I come up with a zero down, pre-tax monthly payment of around $687 using the prices that you mentioned. As you can see, $499 per month isn't happening without a large down payment, which is never a good idea.

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CarMan@Edmunds · August 2006

Hey jjomalley. Here's the info that you're looking for. Audi Financial Services' current buy rate lease money factor and residual value for a 36 month lease of a 2007 A6 4.2 Sedan with 10,000 miles per year are .00140 and 55%, respectively. You definitely don't want to lease this car for 48 months because its 48 month factor jumps all the way to .00360, but you can lease it for 39 months with a factor of .00160 and residual of 45%.

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CarMan@Edmunds · August 2006

Hello anyalytical99. You are getting quite a low selling price on this car. The dealer that you are working with must be running your lease through a bank other than Audi Financial Services. By doing so, they can take advantage of the whopping $6,000 dealer cash that is available on it right now. This cash is not compatible with AFS' special lease program. If this is the case, even with the large discount this dealer is still making over $2,200 on this car. This late in the model year, you may be able to do better than this if you are in an area that has a decent level of competition. Make sure to stop by the following discussion to see how much other community members have paid for similar cars lately: "Audi A6: Prices Paid & Buying Experience".

Since you asked, AFS' current buy rate lease money factor and residual value for a 36 month lease of a 2006 Audi A6 3.2 Sedan without quattro with 12,000 miles per year are .00085 and 46%, respectively.

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CarMan@Edmunds · August 2006

Hi Marc. I'm glad that you enjoy this forum so much. Volkswagen is not currently providing any lease cash on 2006 A6 models. However it has a ton of dealer cash on this car, $6,000 to be exact. This dealer cash is not compatible with Audi Financial Services leases, so many dealers are running consumers' leases through independent banks to take advantage of it.

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CarMan@Edmunds · August 2006

Greetings mandeson. This car's lease program varies by trim level. For now I will assume that you are interested in a 2006 Audi A6 3.2 Sedan with quattro. Let me know if you want something different. Audi Financial Services' current buy rate lease money factor and residual value for a 36 month lease of this car with 12,000 miles per year are .00105 and 47%, respectively. Audi is still providing $6,000 dealer cash on this car in August, but this cash is not compatible with leases through AFS. If you want to take advantage of this cash you have to either pay cash for this car or finance / lease it through an independent bank.

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CarMan@Edmunds · August 2006

Here you go, Al. Audi Financial Services' current buy rate lease money factor and residual value for a 36 month lease of a 2006 Audi A6 3.2 Sedan without quattro with 12,000 miles per year are .00085 and 46%, respectively. You may find that you are better off taking advantage of the $6,000 dealer cash that is available on this car right now and leasing it through an independent bank.

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CarMan@Edmunds · August 2006

Hi shawn757. See my previous post for an answer to your question. This car's 15,000 mile per year residual value is 2% lower than its 12,000 mile per year residual.

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CarMan@Edmunds · August 2006

Hello jjomalley. The money factor tat you were quoted for this car is much higher than Audi Financial Services' current buy rate for it. Its current 36 month buy rate for the '07 A6 4.2 Sedan is only .00140. You're right, the dealer that you are working with may be trying to mark your car's buy rate money factor up to add additional back-end profit to your deal. You definitely should shop around a little bit. You should be able to do better than full MSRP and a jacked up money factor. This car's 48 month lease program is much worse than its 36 month program. The longest you should lease this car for is 36 to 39 months. If you go any longer than that its money factors more than double.

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skollie14 · August 2006

Hi,

Thanks for the info. We are looking at the A6 3.2 with the tech plus premium packages with the wood and leather wheel plus sunroof and we have been quoted a 36 month lease rate of $764 with included maintenance (extra ($8/month). The dealer in Long Island has not given us a written quote which makes me suspicious. Mercedes for the E350 had no qualms in putting it in writing and their prices come in @$711 for 27 monthe and $705 for 39 months.

What should I be paying for the above car with the tech package?

Thanks

jjomalley · August 2006

Thanks for the reply Car Man. I appreciate the information.

kirku · August 2006

Hello. Looking to lease a 2006 audi a6 avant. 36 month, 12k per year
MSRP 54,000- premium package, premium leather seats, navigation & 18inch wheels
Dealer offered 46,000 with 3500 down. MF of .0024 and residual of 44%. Monthly payments of 760. Is this a bad deal?? MF seems high. Residual too low.

Thanks

rjlaero · August 2006

Everybody needs to realize that if you take advantage of dealer cash, you can't use Audi financial services for leasing.

An 06 model is technically 1 year old, and you can't expect to have a great money rate factor & residual. It's the end of the model year and that's when residuals go down.

Audi does not have a tier system based on beacon score as they are a yes/no approval system. But if you take the big dealer cash, you're at the mercy of whatever bank your dealer uses. And even if you have a high 750 plus score, the money rate factors and residuals are always so-so at the end of the year.

shawn757 · August 2006

Does anyone know the residual factor and money factor for private bank lease? Like US bank?

billmv · August 2006

Hi

I'm interested in taking the $6,000 in dealer cash Audi is offering on the 2006 A6 3.2s and then leasing through an independent bank, since you can't take both the cash and get special lease deals from Audi. Anybody been able to find a bank which offers decent residuals and money factors for this car? I'm looking for numbers on 36 months/15,000 miles.

Thanks!

sfcharlie · August 2006

Car_Man: could you post those, please, if still on hand?

Thanks,
Charlie

sfcharlie · August 2006

"This dealer cash is not compatible with Audi Financial Services leases, so many dealers are running consumers' leases through independent banks to take advantage of it."

Car_Man, my first dealing with this issue with an Audi dealer in California was a choice between (1) subtracting the $6000, along with other discounts, from MSRP, and going through Bank of the West (where MF = 5.4% interest rate = .00225) versus (2) foregoing the $6,000 extra discount (assuming the dealer would have passed the whole thing along to me in scenario 1) and taking AFS's MF = 1.8% = 0.00075 (can't find my notes -- I think that's August rate on 2006 A6 3.2 Quattro).

With the numbers from the specific deal I'm considering, the MSRP is roughly $57,000. If I can get a total of $9000 off (with the $6000 dealer incentive), then the depreciation part of the monthly payment (on 36 months, 15K miles/yr) will be $555 and lease charge would be $171 for a total monthly payment to Bank of the West = $726+tax.

If, on the other hand, I went through AFS and could, then, only get, say $3000 off MSRP , instead of $9,000, the monthly depreciation charge (based roughly on 54,000 - $28,000) would be $722 over 36 months. So, even though the monthly lease charge would drop significantly to about $60, I'd still be paying more; but not so much more that, if there was advantage to going with AFS, I wouldn't consider it.

I think I just knew what I was talking about ... maybe

sfcharlie · August 2006

"Does anyone know the residual factor and money factor for private bank lease? Like US bank?"

36 months and 12K/yr

MF for 2006 A6 3.2 Quattro at U.S. Bank is .0024

Residual is 46%.

sfcharlie · August 2006

Anybody know those for 36 months and 15K per year

billmv · August 2006

I presume that 46% residual is an ALG number, which is what most private banks use. Shows you what residual support by a manufacturer is worth.

sfcharlie · August 2006

"I presume that 46% residual is an ALG number, which is what most private banks use. Shows you what residual support by a manufacturer is worth."

Yes... Audi is either being realistic or they are helping to create a self-fulfilling prophecy. ALG's annual awards for brands holding their value went like this for 2005 ...

Luxury Brand Residual Value Rankings
BMW
Lexus
Land Rover
Mercedes-Benz
Acura
Infiniti

...in that order. "Below industry average" were Audi, Cadillac, Jaguar, Lincoln, Saab and Volvo.

So, Audi might be seen as just realistic about demand for three-year-old A6s. Or, as your comment left me thinking, maybe they contribute to their own poor residuals by highlighting them with their own lease offers. I did get the sense from my local Audi dealer that AFS is discouraging people from leasing from them (and thus bringing the cars back to them to dispose of in three years) by offering a $6000 dealer incentive only if you run the lease through a private bank. Don't know if his offhand comment is true.

But, also, we're talking about 2006s. Right now, if you lease a 2007 A6 3.2 Quattro (80%) of A6s are sold with the 3.2 rather than the 4.2, AFS rates are:

12 mo/15k mi  Residual Value 77% of MSRP  .00140 Base Money Factor Rate
24 mo/15k mi  Residual Value 64% of MSRP  .00140 Base Money Factor Rate
36 mo/15k mi  Residual Value 53% of MSRP  .00140 Base Money Factor Rate
48 mo/15k mi  Residual Value 42% of MSRP  .00360 Base Money Factor Rate

Actually, these rates for 2007 are higher than those offered by BMW for the 2007 5-series ...

24 mo/15k mi  Residual Value 70% of MSRP  .00160 Base Money Factor Rate
36 mo/15k mi  Residual Value 60% of MSRP  .00160 Base Money Factor Rate
48 mo/15k mi  Residual Value 43% of MSRP  .00315 Base Money Factor Rate
60 mo/15k mi  Residual Value 34% of MSRP  .00315 Base Money Factor Rate

So, there, for the new cars coming in, Audi appears more optimistic than ALG's stats suggest they should be.

sfcharlie · August 2006

CarMan, can you post the August MF and residual for a 2006 A6 3.2 Quattro sedan, please?

Thanks,
sfcharlie

P.S. If anyone else knows these figures, please post.

sfcharlie · August 2006

Car_Man,

You have posted the August MF and residual for a 2006 A6 3.2 Quattro sedan, 12K/yr and 36 mos as .00105 and 47%.

Are the figures for the same car, but for 15K/yr and 36 mos, .00105 and 45%? MF provided by local dealer here in California, on Lease Review sheet I took home, appears to be .00125. Thought I'd double-check with you before questioning him.

Thanks,
sfcharlie

sfcharlie · August 2006

Car_Man ... I somehow posted my request twice (#227 and #228) ... I thought I was editing #227...Charlie

billmv · August 2006

sfcharlie

Am I reading your numbers (or your interpretation) incorrectly? It appears as though the BMW rates are higher, not AFS'. e.g. AFS 36/15k = 53% & .00140, vs. BMW 36/15k = 60% & .00160.

These are obviously factory generated residuals, but I always thought the intent of the factory sponsored lease programs was to get a relatively low mileage used car back into the dealership so they could sell it again. You always read about how the dealers "make more on a used car than they do on a new car." I have no idea if that's true or not. Does anybody? When you look at the big jump in MF from 36 to 48 months from virtually every manufacturer, you get the impression that they really do not want the cars back if you're going to lease them for more than 36 months. Why? Must be too hard to sell at that point is all I can figure.

When I leased my wife's MB four years ago we used a private lease company and they used Bank of the West. Residuals were much lower at BWE (44% vs. 53% at MB), but the MB MF was .0036 vs. BWE's .0026. That, and a jacked up acq fee at MB, swung the deal in favor of the private lease co.

Thoughts, anyone?

johnscar · September 2006

I am planning to lease a 2007 A6. I'm wondering if I'm anyone can tell me if I'm getting a reasonable deal. Here are the details:

2007 A6 3.2 Quattro
Options: Premium(WB6), Convenience(PPX), Technolgy(WTC), and heated Steering wheel (2ZM)
MSRP: $54,220
Sale Price: $53,000
Lease Term: 36 months, 10,000mi/yr, $.25/mile over 30,000.
Residual Value: 56% of MSPR
Money Factor: .0014
Additional Security Deposits: $6750 (9 at 750 each, lowers the MF from .0020 to .0014)
Monthly Payment: $751 ($628 depr, 117 interest, $6 lux tax)

Looking at the lease deals people were getting on 2006 A6's has given me pause.

Thanks for the insight and feedback.

petrie3 · September 2006

My lease is about up on my 2003 4.2 A6 and i am looking for a 2007 4.2 A6. What are the residuals and MF for Sept.? any other incentives like the dealer cash for non-AFS leases, etc. I am coming off an AFS lease. Any credit for returning Audi/AFS customers? Thanks much for your help.

CarMan@Edmunds · September 2006

You're very welcome, skollie14. 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 of this deal if you let me know what these numbers are.

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CarMan@Edmunds · September 2006

No problem, jjomalley. I;m glad that I was able to help you out.

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CarMan@Edmunds · September 2006

Hey Charlie. I don't know if you have leased yet or not, but for the month of September Audi decided to stop providing lease support on 2006 models. This isn't necessarily a bad thing because the dealer cash that it is providing on them was not compatible with Audi Financial Services' special lease money factors anyhow. Your best bet is to lease this car through an independent bank and use the $6,000 dealer cash that Audi is currently providing on it to negotiate a very low capitalized cost. Unfortunately I do not personally keep tabs on the lease programs that independent banks are offering, but dealers usually have computer systems that enable them to search the country to see what banks are running the most attractive lease programs on a particular vehicle at any given time.

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CarMan@Edmunds · September 2006

Hi again Charlie

. I am not surprised that the lease through an independent bank using the dealer cash and AFS' lease program end up with monthly payments that are about the same. Manufacturers often provide dealer cash allowances on vehicles at the end of the model year that are fairly similar to the cost of providing lease support.

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CarMan@Edmunds · September 2006

Hi johnscar. The lease money factor and residual value that you were quoted for this car are right in line with Audi Financial Services' current program for it. This is always a good sign because it means that the dealer you are working with is not trying to mark up your car's money factor to add additional hidden back-end profit to your deal.

Now let's take a look at this car's selling price. You are only being given a discount of $1,200 on this car. I am not personally all that familiar with what the market is like for the A6 right now, but if you are in an area that has a decent level of competition I personally would not be surprised if you were able to beat this price. Make sure to check out the following discussion here at Edmunds.com to see how much other community members have paid for similar cars lately: "Audi A6: Prices Paid & Buying Experience".

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CarMan@Edmunds · September 2006

Here's the information that you're looking for, petrie3. You never mentioned how long you want to lease this car for and what sort of mileage allowance you need, so for now I will assume that you are interested in a 36 month lease with 15,000 miles per year. Let me know if you want something different. Audi Financial Services' current buy rate lease money factor and residual value for a 36 month lease of a 2007 A6 4.2 Sedan with 15,000 miles per year are .00140 and 52%, respectively. Audi is providing close out dealer cash on 2006 A6 models, but it does not currently have any cash on 2007 models.

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ccap · September 2006

2007 A6 4.2, MSRP of 62k.
The dealership said
$2,800 up front (first, security, aqu fee)
36 months 12k miles
$960 month

Is this the range I woul dbe paying for a 62k car? Seems high

petrie3 · September 2006

Thanks Car Man! I am looking for a lease of anywhere from 2-4 years depending on where the "sweet spot" of lease rates, residuals, dealer cash and negotiated Cap Cost is on these cars. I only need 10K miles/year. Thanks again.

schange · September 2006

2007 A6 4.2
MSRP: 496,900
selling price: 476,900
36 months
12K miles
Res. Value: 54%
MF: 0.00155
No down
Orange county, Southern California
$751 + tax = $809

is this a good deal?

mnoker · September 2006

What kind of deal can I get on a 07 A6 3.2 Auto Multitronic FrontTrak® with these options..
Options:
Sunroof Package $1,450
Premieum Package $2,500
MSRP: 46,490
24 or 36 (which ever is better) month lease 12k miles.

mnoker · September 2006

Is this a good deal.
It's a 2006 Audi A6 3.2 Quattro: MSRP: $49,190

Model Year: 2006
Model: 4F25NL A6 3.2 SEDAN 4-DR AUTO QUATTRO
Exterior Color: B5B5 ARCTIC WHITE
Interior Color: NK EBONY
Options: 0LM CALIFORNIA EMISSIONS
6W9 FRONT PLATE FILLER PANEL
N1F LEATHER SEATING INSERTS
PPX PREMIUM PACKAGE
QV8 SIRIUS SATELLITE RADIO
WB6 SUNROOF PACKAGE

36 months/ 12K per year with $2500 total out of pocket @ $682.00 per month including CA tax.

He told me he would give it to me 6k under invoice, which would come out to around 39,500, but with that payment its hard to believe that.

rjlaero · September 2006

This has been discussed before.

Taking dealer cash and getting a huge discount off a 2006 model might not be the best thing to do when leasing. The car is already 1 year old, and the banks kill the residuals and money rate factors. You can't use Audi for leasing when you take dealer cash, so you're at the mercy of other banks.

CarMan@Edmunds · October 2006

Greetings ccap. The best way to tell if this lease is a good deal is to find out this car's selling price. This is a very important number for consumers to know because it shows you how much of a discount they are being given and it enables them to estimate what their vehicle's lease payment should be. I would be happy to share my thoughts on this lease with you if you provide me with this car's selling price.

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CarMan@Edmunds · October 2006

You;re very welcome, petrie3. 36 months is a pretty good term to lease this model for. If you were to lease it with only 10,000 miles per year, its residual value for this term would be 3% higher than its 15,000 mile per year residual.

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CarMan@Edmunds · October 2006

Wow, schange, this is one expensive car...with an MSRP of 496,900 :surprise: . Obviously something's not right with the prices that you posted

. If you post this car's correct MSRP and selling price I would be happy to give you feedback on them. You can always stop by the following discussion to see how much other community members have paid for similar cars lately: "Audi A6: Prices Paid & Buying Experience". For now I can tell you that the money factor that you were quoted for this car is right in line with Audi Financial Services' buy rate for it (with a waived security deposit). This is a good sign.

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CarMan@Edmunds · October 2006

Hi mnoker. I personally am not all that familiar with what the market is like for this car right now. You may be able to get an idea of how much you should pay for one, selling price-wise, by visiting the following discussion: "Audi A6: Prices Paid & Buying Experience". Once you have an approximate selling price for this car, let me know and I can use Audi Financial Services' actual lease program to estimate what its monthly payment should be.

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CarMan@Edmunds · October 2006

Hi mnoker. $6,000 under dealer invoice is an excellent price for this car. It is below invoice even after the $5,000 dealer cash that is available on this car right now is taken into account. Using Audi Financial Services' current 36 month lease program for this model, .00328 / 45%, I estimate that this car's zero down, pre-tax monthly payment should be around $685. With this deal you would have to pay your first month's payment, a security deposit equivalent to that payment rounded up to the nearest $25 increment, and AFS' $575 acquisition fee at lease signing.

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CarMan@Edmunds · October 2006

Rjlaero, now that Audi is no longer providing lease support on the 2006 A6 I believe that the dealer cash that is available on this car can be used on leases through Audi Financial Services.

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petrie3 · October 2006

Thanks Car Man! Any word on the October lease rates/residuals for Audi A6 and A8? Again, I would be low miles and term not exceeding 36 months unless there is a "sweet spot" a little longer than that. My current lease for example was for 39 months. Thanks again!

mitch1163 · October 2006

Audietc
Can you please name the dealer who gave you this deal in CT? Far as I know, dealer names ARE permitted on this site, only SALESPEOPLE names are not allowed. THanks
Mitch

dras · October 2006

My car comes off lease in March of 07 and I'm planning on leasing a 3.2 quattro A6 with Nav in the Washington, DC area. My question is whether anyone thinks it's beneficial to lease towards the end of '06, hoping to get a good deal on a 2006 model, or should I wait until my lease expires. Assuming I were to lease in December I'd be looking at about $1300 of lease payments I still need to make on my current car. Do you think savings could outweigh the remaining cost of my lease? Sorry if this is a naive question, it's only the 2nd time I've bought a car. Thanks!

lyndonw · October 2006

I can purchase a 2007 Audi A6 at invoice price. What would the lease factors be on this car? I can puchase a 2006 A6 with 4500 miles that has not been titled for $37000. I have not examined a lease for this purchase.
Any advice? Sorry to be so vague but I wasn't even in the market for a car until I got on this forum and found the prices others were getting.
Thanks so much for your help.

ccap · October 2006

Can you be more specific on the 07 A6? Is it a 4.2, what packages, etc. I don't think they are discounting the 4.2 that much because of the limited number of engines available

lyndonw · October 2006

I'm sure it's not a 4.2' Other than that I don't really know much. We have been communicating by e-mail and I was told they would sell 2007s at invoice. Went to the dealer last night and had a salesman who knew absolutely nothing about the car. Thought I would get a follow-up e-mail or telephone call today but nothing. Maybe they're not as anxious to sell a car as they appeared.
The 06 is still available at a $10000 discount.

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