Audi A6 2016 lease evaluation, need help

kiwi5094

I am looking Audi A6 prestige with drivers assistance, s line , 20 inch wheel, cold weather package
Can someone please if this is good offer and provide monthly payment please

MSRP :69320
Sale price :67450
rebate : 2750 (giving me extra rebate because I have lexus)
Negotiated price: 64700
Tax : 4043.75
OTD: 69070
acquisition fee 695
license and reg, fees : 326.44
residual : 52 % 36 mo 12000 mi

Michaell

kiwi5094 said:

I am looking Audi A6 prestige with drivers assistance, s line , 20 inch wheel, cold weather package
Can someone please if this is good offer and provide monthly payment please

MSRP :69320
Sale price :67450
rebate : 2750 (giving me extra rebate because I have lexus)
Negotiated price: 64700
Tax : 4043.75
OTD: 69070
acquisition fee 695
license and reg, fees : 326.44
residual : 52 % 36 mo 12000 mi

Lease numbers for the 2016 Audi A6 3.0T Prestige are 52% and .00069 for 36/12.

Using your MSRP and OTD prices, I calculate a payment of $990/mo.

What state is this? Only a few charge sales tax against the entire selling price.

kiwi5094

thank you for your help
it is texas

Michaell

kiwi5094 said:

thank you for your help
it is texas

Figured as much ... one of 4 states that tax the entire selling price, unfortunately. That's adding over $100/mo to the lease payment.

kiwi5094

can buy in California then bring it to Texas?

Michaell

kiwi5094 said:

can buy in California then bring it to Texas?

 not sure that the Texas Department of revenue will allow you to avoid paying them what you owe.  But, you should check with the state first 

kyfdx

kiwi5094 said:

can buy in California then bring it to Texas?

That won't save you any money... you'll owe Texas tax, either way.

kiwi5094

oh ok
thank you

kiwi5094

one more questions to you
so I guess texas sale tax which is almost $4000 will be included in net cap cost as OTD price ? and afftect the finance charges on lease ?

Michaell

kiwi5094 said:

one more questions to you
so I guess texas sale tax which is almost $4000 will be included in net cap cost as OTD price ? and afftect the finance charges on lease ?

If you don't pay the taxes up front and they are added into the cap cost, then yes, that amount is subject to the rent charge.

kiwi5094

thanks

porscheaudinut

I am interested in leasing a 3.0T A6 Prestige with an MSRP of $68,950 and a selling price of $64,200. Term is 42 months and mileage allowance is 12,000/year.

Added to the SP is the following:
Doc Fee: $80.00
Acquisition Fee: $695.00
Cap Fees: $557.75
Cap Taxes: $1,110.02
For a TOTAL Gross Cap Cost of $65,532.75

Question 1: I think the SP is fair, but what are "Cap Fees" and are the Acquisition and Doc Fees negotiable?

Then, for Cap Reduction:

I'm putting $12,000 down, to lower payments.
I have a "Rebates Reduction" of $1,875.24
Total Cap reduction is the sum, or $13,875.24

Question 2: Total rebates are elsewhere stated as $2,500...why a "reduction" of $1,75.24

Residual is listed as .47 and the "Rate" is .0011. Calculated payment is $578.48 before tax, and $624.76 including tax. These payments include, over the course of the 42 month term, $3,934.98 in "Rent/Lease Charge."

Questions 3: The Rent/Lease Charge is $93 of every payment or 16% of the simple Depreciation number/42...isn't this high?

Question 4: If it is high (as I suspect), what would good deal look like?

Thank you!

kyfdx

porscheaudinut said:

I am interested in leasing a 3.0T A6 Prestige with an MSRP of $68,950 and a selling price of $64,200. Term is 42 months and mileage allowance is 12,000/year.

Added to the SP is the following:
Doc Fee: $80.00
Acquisition Fee: $695.00
Cap Fees: $557.75
Cap Taxes: $1,110.02
For a TOTAL Gross Cap Cost of $65,532.75

Question 1: I think the SP is fair, but what are "Cap Fees" and are the Acquisition and Doc Fees negotiable?

Then, for Cap Reduction:

I'm putting $12,000 down, to lower payments.
I have a "Rebates Reduction" of $1,875.24
Total Cap reduction is the sum, or $13,875.24

Question 2: Total rebates are elsewhere stated as $2,500...why a "reduction" of $1,75.24

Residual is listed as .47 and the "Rate" is .0011. Calculated payment is $578.48 before tax, and $624.76 including tax. These payments include, over the course of the 42 month term, $3,934.98 in "Rent/Lease Charge."

Questions 3: The Rent/Lease Charge is $93 of every payment or 16% of the simple Depreciation number/42...isn't this high?

Question 4: If it is high (as I suspect), what would good deal look like?

Thank you!

.00070 MF and 47% residual.

Answer 1) I would assume that "capped fees" are your title/registration fees. They usually run about 1% of MSRP. I'll assume you are in California, because of the $80 doc fee. "capped taxes" is the upfront tax on the $13875 cap reduction.
Acquisition fee is not negotiable. Doc fee is technically negotiable, but since every single CA dealer charges the state maximum fee (and, it's only $80), then really no point in focusing on that.

Answer 2) If $12K + $2500 rebate is the total due at signing, then the 1st payment is coming out of that amount and that's why the CCR is reduced by the $624.

Answer 3) The rent charge or finance portion of the lease is applied to the average of the CAP cost and the residual, not the depreciation. You aren't borrowing the depreciation amount, you are borrowing the NET Cap cost, and paying that amount down to the residual, over the life of the lease. (At least, that's the gist of the calculation. In reality, you are renting the car). Calculating the rent charge as a percentage of depreciation isn't relevant or instructive to how the lease works.

Answer 4) I get a payment of $546/mo.+tax, if the Net cap cost is $51457 ($65532 - $13875). So, off nearly $32/mo. there.
Also, the MF is marked up from the base MF of .00070. That adds about $33/mo. pre-tax (in addition to the discrepancy in calculations).

The information you have is very good and complete. But, I'd ask for that NET cap cost number, after the cap cost reductions, and see if you can find where that extra $1300-1400 is coming from that causes their payment to be $32+tax more than the one I calculated. (after that, you can work on the money factor)

porscheaudinut

Thank you! The Net Cap Cost is $52,767.53...but the Total Cap Reduction is listed as just what you describe: $13,875.24. That's about $1,100 more than your calculation, and on the spreadsheet I have, it's set up to make it seem like they were literally subtracting one from the other, yet it's wrong!

They've come back and reduced the base payment (without taxes) by about $20.00, but the above discrepancy hasn't been brought to their attention yet. This shouldn't be so complicated!

To make this simpler, can you give me what would constitute a "good deal" on a SP of $62,400, 42 month lease, with $12,000 cash injection, plus the benefit of $2,500 in rebates? Thanks so much for your help!

kyfdx

porscheaudinut said:

Thank you! The Net Cap Cost is $52,767.53...but the Total Cap Reduction is listed as just what you describe: $13,875.24. That's about $1,100 more than your calculation, and on the spreadsheet I have, it's set up to make it seem like they were literally subtracting one from the other, yet it's wrong!

They've come back and reduced the base payment (without taxes) by about $20.00, but the above discrepancy hasn't been brought to their attention yet. This shouldn't be so complicated!

To make this simpler, can you give me what would constitute a "good deal" on a SP of $62,400, 42 month lease, with $12,000 cash injection, plus the benefit of $2,500 in rebates? Thanks so much for your help!

Exactly what I posted before.. $32/mo. less, minus another $33/mo. with the base MF. So, $65/mo. less than their quote.

porscheaudinut

Thank you; and just to see the other extreme, what about the same vehicle negotiated with $0 down?

kyfdx

porscheaudinut said:

Thank you; and just to see the other extreme, what about the same vehicle negotiated with $0 down?

Subtract the $12K and add $294/mo. to the pretax payment