2017 Audi A4 Lease Questions

Michaell

tessler240 said:

kyfdx said:

tessler240 said:

Do you have the MF and residual for the newly announced manual version? Premium and quattro. With and without Audicare would be great.

Transmission does not affect the numbers.

What term and mileage?

36 mo/12K miles

.00079 and 58%

tessler240

Michaell said:

tessler240 said:

kyfdx said:

tessler240 said:

Do you have the MF and residual for the newly announced manual version? Premium and quattro. With and without Audicare would be great.

Transmission does not affect the numbers.

What term and mileage?

36 mo/12K miles

.00079 and 58%

Thanks. What about with AudiCare?

kyfdx

tessler240 said:

Michaell said:

tessler240 said:

kyfdx said:

tessler240 said:

Do you have the MF and residual for the newly announced manual version? Premium and quattro. With and without Audicare would be great.

Transmission does not affect the numbers.

What term and mileage?

36 mo/12K miles

.00079 and 58%

Thanks. What about with AudiCare?

Add 1% for AudiCare.

Numbers expired yesterday, though

msrp20000

Hi. Can you please share October lease numbers for a 2017 A4 Quattro prestige, 7.5K and 10K miles, for 36, 39 and 42 months? I'm also considering a single-pay lease, which I have never done before. Presumably there is a tax savings (I'm in Texas), but also something called an L&M fee. Can you guide me in how the single pay lease should work, and share MF and reside numbers if they are different from a standard lease?

Thanks.

cladbolg

Hello everyone.
Could you help me out please?
I was looking for the new numbers on audi a4.
36/15. 36/12.
Thank you so much.

sixsence

October lease numbers for 2017 A4 Premium Plus Quattro 42/15 please?

kyfdx

msrp20000 said:

Hi. Can you please share October lease numbers for a 2017 A4 Quattro prestige, 7.5K and 10K miles, for 36, 39 and 42 months? I'm also considering a single-pay lease, which I have never done before. Presumably there is a tax savings (I'm in Texas), but also something called an L&M fee. Can you guide me in how the single pay lease should work, and share MF and reside numbers if they are different from a standard lease?

Thanks.

10K/yr.. add 1% for 7.5K/yr

.00061 MF and 58% residual
.00081 MF and 56% residual
.00081 MF and 54% residual

Single Pay:
Deduct .00060 for 36 months
Deduct .00075 for 39 months
Not available for 42 months

Michaell

cladbolg said:

Hello everyone.
Could you help me out please?
I was looking for the new numbers on audi a4.
36/15. 36/12.
Thank you so much.

What trim level?

FWD or Quattro?

Michaell

sixsence said:

October lease numbers for 2017 A4 Premium Plus Quattro 42/15 please?

.00081 and 51%

sixsence

kyfdx said:

msrp20000 said:

Hi. Can you please share October lease numbers for a 2017 A4 Quattro prestige, 7.5K and 10K miles, for 36, 39 and 42 months? I'm also considering a single-pay lease, which I have never done before. Presumably there is a tax savings (I'm in Texas), but also something called an L&M fee. Can you guide me in how the single pay lease should work, and share MF and reside numbers if they are different from a standard lease?

Thanks.

10K/yr.. add 1% for 7.5K/yr

.00061 MF and 58% residual
.00081 MF and 56% residual
.00081 MF and 54% residual

Single Pay:
Deduct .00060 for 36 months
Deduct .00075 for 39 months
Not available for 42 months

What is single pay?

Michaell

sixsence said:

kyfdx said:

msrp20000 said:

Hi. Can you please share October lease numbers for a 2017 A4 Quattro prestige, 7.5K and 10K miles, for 36, 39 and 42 months? I'm also considering a single-pay lease, which I have never done before. Presumably there is a tax savings (I'm in Texas), but also something called an L&M fee. Can you guide me in how the single pay lease should work, and share MF and reside numbers if they are different from a standard lease?

Thanks.

10K/yr.. add 1% for 7.5K/yr

.00061 MF and 58% residual
.00081 MF and 56% residual
.00081 MF and 54% residual

Single Pay:
Deduct .00060 for 36 months
Deduct .00075 for 39 months
Not available for 42 months

What is single pay?

One payment at the beginning of the lease - it's the sum of the calculated monthly payments; you get a discount on the MF if you do that.

sixsence

Wouldn't it be easier for you guys to just release a spreadsheet or something once a month, instead of repeating answers all month long?

Michaell

sixsence said:

Wouldn't it be easier for you guys to just release a spreadsheet or something once a month, instead of repeating answers all month long?

Yes, except the information is confidential. And, we answer questions for all brands and models.

And, we don't mind answering the questions ... it gives us purpose.

kyfdx

sixsence said:

Wouldn't it be easier for you guys to just release a spreadsheet or something once a month, instead of repeating answers all month long?

200 different make/models, plus different trims, terms and mileage.

If you had bought a car last month, that's four less questions we'd have already..

cladbolg

Michaell said:

cladbolg said:

Hello everyone.
Could you help me out please?
I was looking for the new numbers on audi a4.
36/15. 36/12.
Thank you so much.

What trim level?

FWD or Quattro?

It is the Premium Quattro.

Thank you so much.

Michaell

cladbolg said:

Michaell said:

cladbolg said:

Hello everyone.
Could you help me out please?
I was looking for the new numbers on audi a4.
36/15. 36/12.
Thank you so much.

What trim level?

FWD or Quattro?

It is the Premium Quattro.

Thank you so much.

36/15 - .00079 and 56%. Add 2% for 12K

tessler240

Any idea when the manual version will be available? Haven't seen anything officially announced by Audi.

Also, what would the new numbers be for premium plus 12k/36mo?

Thanks.

tessler240

tessler240 said:

Any idea when the manual version will be available? Haven't seen anything officially announced by Audi.

Also, what would the new numbers be for premium plus 12k/36mo?

Thanks.

Whoops, forgot to mention Quattro. Thanks.

kyfdx

tessler240 said:

tessler240 said:

Any idea when the manual version will be available? Haven't seen anything officially announced by Audi.

Also, what would the new numbers be for premium plus 12k/36mo?

Thanks.

Whoops, forgot to mention Quattro. Thanks.

.00061 MF and 57% residual

mszkoda

kyfdx said:

tessler240 said:

tessler240 said:

Any idea when the manual version will be available? Haven't seen anything officially announced by Audi.

Also, what would the new numbers be for premium plus 12k/36mo?

Thanks.

Whoops, forgot to mention Quattro. Thanks.

.00061 MF and 57% residual

Would going to 15k/36 just drop the residual 2% on this like I've usually seen?

Michaell

mszkoda said:

kyfdx said:

tessler240 said:

tessler240 said:

Any idea when the manual version will be available? Haven't seen anything officially announced by Audi.

Also, what would the new numbers be for premium plus 12k/36mo?

Thanks.

Whoops, forgot to mention Quattro. Thanks.

.00061 MF and 57% residual

Would going to 15k/36 just drop the residual 2% on this like I've usually seen?

Yes, that is correct.

msrp20000

Thanks. Can you please confirm that these residuals are for a Prestige quattro, and not a premium plus? My dealer is quoting a 53% residual for a 10K lease.

kyfdx said:

msrp20000 said:

Hi. Can you please share October lease numbers for a 2017 A4 Quattro prestige, 7.5K and 10K miles, for 36, 39 and 42 months? I'm also considering a single-pay lease, which I have never done before. Presumably there is a tax savings (I'm in Texas), but also something called an L&M fee. Can you guide me in how the single pay lease should work, and share MF and reside numbers if they are different from a standard lease?

Thanks.

10K/yr.. add 1% for 7.5K/yr

.00061 MF and 58% residual
.00081 MF and 56% residual
.00081 MF and 54% residual

Single Pay:
Deduct .00060 for 36 months
Deduct .00075 for 39 months
Not available for 42 months

sixsence

Premium Plus Quattro
42/12 and 36/15 please

Michaell

msrp20000 said:

Thanks. Can you please confirm that these residuals are for a Prestige quattro, and not a premium plus? My dealer is quoting a 53% residual for a 10K lease.

kyfdx said:

msrp20000 said:

Hi. Can you please share October lease numbers for a 2017 A4 Quattro prestige, 7.5K and 10K miles, for 36, 39 and 42 months? I'm also considering a single-pay lease, which I have never done before. Presumably there is a tax savings (I'm in Texas), but also something called an L&M fee. Can you guide me in how the single pay lease should work, and share MF and reside numbers if they are different from a standard lease?

Thanks.

10K/yr.. add 1% for 7.5K/yr

.00061 MF and 58% residual
.00081 MF and 56% residual
.00081 MF and 54% residual

Single Pay:
Deduct .00060 for 36 months
Deduct .00075 for 39 months
Not available for 42 months

36/10 for Prestige Quattro is 54% - 53% is 36/12.

Looks like we did accidently quote the Prem Plus residuals; deduct 4% from them for Prestige. MF is correct.

zlaninomma

can you share MF and residual for A4 premium quattro 36/12? Denver Region

Michaell

zlaninomma said:

can you share MF and residual for A4 premium quattro 36/12? Denver Region

.00061 and 57%

maxmolly1

HI
Can you please tell me the the money factor and residual for for A4 Prestige Quatro (42 months 7500 miles) for Nashville TN? Thank you so much.

Michaell

maxmolly1 said:

HI
Can you please tell me the the money factor and residual for for A4 Prestige Quatro (42 months 7500 miles) for Nashville TN? Thank you so much.

.00081 and 51%

sixsence

Can I have the MF and RV for Premium Plus Quattro 39/12 and 42/12 please?

kyfdx

sixsence said:

Can I have the MF and RV for Premium Plus Quattro 39/12 and 42/12 please?

.00081 MF and 55%/53% residual.

zoodi18

Good morning! Can you kindly share the MF and RV for Premium Plus Quattro 36/10 - located in IL.

Michaell

zoodi18 said:

Good morning! Can you kindly share the MF and RV for Premium Plus Quattro 36/10 - located in IL.

.00061 and 58%

sixsence

42/12 is the sweet spot for premium plus quattro

msrp20000

Michaell said:

sixsence said:

kyfdx said:

msrp20000 said:

Hi. Can you please share October lease numbers for a 2017 A4 Quattro prestige, 7.5K and 10K miles, for 36, 39 and 42 months? I'm also considering a single-pay lease, which I have never done before. Presumably there is a tax savings (I'm in Texas), but also something called an L&M fee. Can you guide me in how the single pay lease should work, and share MF and reside numbers if they are different from a standard lease?

Thanks.

10K/yr.. add 1% for 7.5K/yr

.00061 MF and 58% residual
.00081 MF and 56% residual
.00081 MF and 54% residual

Single Pay:
Deduct .00060 for 36 months
Deduct .00075 for 39 months
Not available for 42 months

What is single pay?

One payment at the beginning of the lease - it's the sum of the calculated monthly payments; you get a discount on the MF if you do that.

Thanks a bunch for the MF and residual information.

I have a follow-up question regarding the answer to "what is a single pay." I had thought that in a single-pay lease, you pay the depreciation up-front, and finance only the residual amount. If you compute a standard monthly lease, and multiply that by the lease term, aren't you paying interest on money you aren't borrowing?

I would think that the lower MF compensates for the decreased risk from not having a monthly payment. But you should not have to pay the MF on an amount that was paid up-front. If the single-pay is computed by multiplying the standard lease's monthly payment, you can't determine the cost of capital from the MF.

Michaell

msrp20000 said:

Michaell said:

sixsence said:

kyfdx said:

msrp20000 said:

Hi. Can you please share October lease numbers for a 2017 A4 Quattro prestige, 7.5K and 10K miles, for 36, 39 and 42 months? I'm also considering a single-pay lease, which I have never done before. Presumably there is a tax savings (I'm in Texas), but also something called an L&M fee. Can you guide me in how the single pay lease should work, and share MF and reside numbers if they are different from a standard lease?

Thanks.

10K/yr.. add 1% for 7.5K/yr

.00061 MF and 58% residual
.00081 MF and 56% residual
.00081 MF and 54% residual

Single Pay:
Deduct .00060 for 36 months
Deduct .00075 for 39 months
Not available for 42 months

What is single pay?

One payment at the beginning of the lease - it's the sum of the calculated monthly payments; you get a discount on the MF if you do that.

Thanks a bunch for the MF and residual information.

I have a follow-up question regarding the answer to "what is a single pay." I had thought that in a single-pay lease, you pay the depreciation up-front, and finance only the residual amount. If you compute a standard monthly lease, and multiply that by the lease term, aren't you paying interest on money you aren't borrowing?

I would think that the lower MF compensates for the decreased risk from not having a monthly payment. But you should not have to pay the MF on an amount that was paid up-front. If the single-pay is computed by multiplying the standard lease's monthly payment, you can't determine the cost of capital from the MF.

The lease payment is calculated as normal, just with a reduced MF, then you make all the payments at one time. You don't avoid the 'rent charge' with a one-pay lease, it's just a reduced amount due to the lower MF.

You are still borrowing the same amount of money, either way.

Think of the discounted MF as an incentive for making the payments up front. Similar to MSD - you give the bank money up front for a reduction in the MF.

kyfdx

msrp20000 said:

Michaell said:

sixsence said:

kyfdx said:

msrp20000 said:

Hi. Can you please share October lease numbers for a 2017 A4 Quattro prestige, 7.5K and 10K miles, for 36, 39 and 42 months? I'm also considering a single-pay lease, which I have never done before. Presumably there is a tax savings (I'm in Texas), but also something called an L&M fee. Can you guide me in how the single pay lease should work, and share MF and reside numbers if they are different from a standard lease?

Thanks.

10K/yr.. add 1% for 7.5K/yr

.00061 MF and 58% residual
.00081 MF and 56% residual
.00081 MF and 54% residual

Single Pay:
Deduct .00060 for 36 months
Deduct .00075 for 39 months
Not available for 42 months

What is single pay?

One payment at the beginning of the lease - it's the sum of the calculated monthly payments; you get a discount on the MF if you do that.

Thanks a bunch for the MF and residual information.

I have a follow-up question regarding the answer to "what is a single pay." I had thought that in a single-pay lease, you pay the depreciation up-front, and finance only the residual amount. If you compute a standard monthly lease, and multiply that by the lease term, aren't you paying interest on money you aren't borrowing?

I would think that the lower MF compensates for the decreased risk from not having a monthly payment. But you should not have to pay the MF on an amount that was paid up-front. If the single-pay is computed by multiplying the standard lease's monthly payment, you can't determine the cost of capital from the MF.

You could make a big CAP reduction, and then only pay "interest" on the residual amount, but you'd have to pay the full rate. Of course, then you'd still have a payment for the finance charges on the residual amount.

If you'll note, once you make the single-pay money factor reductions above, it reduces the money factor to almost ZERO. So, in effect, you are paying very, very little interest. In the 36 month example, the money factor would be .00001, and the total amount of finance charges would be about $25.

mikeredii

Hi Michaell,

This is my first time leasing and I am interested in Audi A4 . DEALER SUGGESTED MODEL is "2.0T quattro S Tronic Premium plus with tech and cold weather package". Dealer quoted Price(MSRP $49K-3% discount=$47500). Please help me how to best negotiate to lease this . State is Arkansas. He is asking $600 with 5K down for 36mo/10K miles.. Any help will be greatly appreciated and thank you in advance.

Michaell

mikeredii said:

Hi Michaell,

This is my first time leasing and I am interested in Audi A4 . DEALER SUGGESTED MODEL is "2.0T quattro S Tronic Premium plus with tech and cold weather package". Dealer quoted Price(MSRP $49K-3% discount=$47500). Please help me how to best negotiate to lease this . State is Arkansas. He is asking $600 with 5K down for 36mo/10K miles.. Any help will be greatly appreciated and thank you in advance.

First, work to get 6% off sticker.

Second, find out what the $5k covers. You don't want to make a cap reduction - that money would be lost if the car is stolen or totaled.

Lease numbers are .00061 and 58%.

mikeredii

Hi Michael,

So based on the calculations I did for MF 0.00061 and Residual 58%, with MSRP of 49K and invoice of 46K, I am getting $595 per month before taxes and audi care for a 36month/10K lease. Is it a fair price to pay? Also 36/10 the best value for money? I dnt mind signing for 42mo if tats a better deal. Appreciate your reply. Thank you.

Michaell

mikeredii said:

Hi Michael,

So based on the calculations I did for MF 0.00061 and Residual 58%, with MSRP of 49K and invoice of 46K, I am getting $595 per month before taxes and audi care for a 36month/10K lease. Is it a fair price to pay? Also 36/10 the best value for money? I dnt mind signing for 42mo if tats a better deal. Appreciate your reply. Thank you.

I get $534/mo plus tax with those numbers - not sure where we differ in the calculations. For Audi, 6% off sticker is a good discount.

mikeredii

Hi Michael. I trust your numbers than mine. Can you tell where is my calculation going wrong.

MSRP $49,120.00
Residual $28,489.60(I calculated 58%Based on MSRP)
Invoice $46,172.80(After 6% Discount)
Depreciation $17,683.20(Invoice-Residual)
Monthly Depp Payment $491.20(Depreciation/36)
Invoice+Depp*MF $102.81(To add apr or smthing based on MF)
Actual Monthly Payment $594.01(before sales tax and audi care)

Can you tell me where I am doing the wrong calculation. ? Appreciate all your help. Thank you.

mikeredii

I figured out... the dealer quote MF is 0.00161 with a residual 58 and I did my calculations based of tat yesterday and was thinking the dealer quoted mf and residual match to yours lol....he probably knows i will be checking online and quoted tricky MF:) Thank you Michael for all your help

Michaell

mikeredii said:

Hi Michael. I trust your numbers than mine. Can you tell where is my calculation going wrong.

MSRP $49,120.00
Residual $28,489.60(I calculated 58%Based on MSRP)
Invoice $46,172.80(After 6% Discount)
Depreciation $17,683.20(Invoice-Residual)
Monthly Depp Payment $491.20(Depreciation/36)
Invoice+Depp*MF $102.81(To add apr or smthing based on MF)
Actual Monthly Payment $594.01(before sales tax and audi care)

Can you tell me where I am doing the wrong calculation. ? Appreciate all your help. Thank you.

The depreciation portion of the payment is correct; the rent charge calculation is not - the calculation is (cap cost + residual value) * MF - I get about $45.50/mo instead of your $102.81/mo

mikeredii

Hi Michael,

Dealer agreed for the 6 percent discount on MSRP , 58% residual and for a money factor of 0.00091. With state sales tax of 6.5 percent and city and county taxes, $634 a month with zero down. Is it fair or any room for negotiation? 36mo/10K A4 Premimum plus quattro . Thank you for all your help.

Michaell

mikeredii said:

Hi Michael,

Dealer agreed for the 6 percent discount on MSRP , 58% residual and for a money factor of 0.00091. With state sales tax of 6.5 percent and city and county taxes, $634 a month with zero down. Is it fair or any room for negotiation? 36mo/10K A4 Premimum plus quattro . Thank you for all your help.

MSRP and adjusted cap cost?

Is it $0 down or $0 out of pocket?

mikeredii

Hi Michael,

MSRP $49125, Adjusted CAP cost is 47K including the acquisition fee. He said if I agree to pay $634 month for next 36 months, I can sign for 36mo/10k lease and only first month payment is due at time of lease signing. He said his numbers are based on 58% residual MF 0.00091 and 9% (state+ city+county taxes). I am seeing a $25 dollar difference with a MF of 0.00061 which i felt is okay as I am not doing any down payment. Please share your thoughts on this michael . Thank you for all your help.

sixsence

Michaell said:

msrp20000 said:

Michaell said:

sixsence said:

kyfdx said:

msrp20000 said:

Hi. Can you please share October lease numbers for a 2017 A4 Quattro prestige, 7.5K and 10K miles, for 36, 39 and 42 months? I'm also considering a single-pay lease, which I have never done before. Presumably there is a tax savings (I'm in Texas), but also something called an L&M fee. Can you guide me in how the single pay lease should work, and share MF and reside numbers if they are different from a standard lease?

Thanks.

10K/yr.. add 1% for 7.5K/yr

.00061 MF and 58% residual
.00081 MF and 56% residual
.00081 MF and 54% residual

Single Pay:
Deduct .00060 for 36 months
Deduct .00075 for 39 months
Not available for 42 months

What is single pay?

One payment at the beginning of the lease - it's the sum of the calculated monthly payments; you get a discount on the MF if you do that.

Thanks a bunch for the MF and residual information.

I have a follow-up question regarding the answer to "what is a single pay." I had thought that in a single-pay lease, you pay the depreciation up-front, and finance only the residual amount. If you compute a standard monthly lease, and multiply that by the lease term, aren't you paying interest on money you aren't borrowing?

I would think that the lower MF compensates for the decreased risk from not having a monthly payment. But you should not have to pay the MF on an amount that was paid up-front. If the single-pay is computed by multiplying the standard lease's monthly payment, you can't determine the cost of capital from the MF.

The lease payment is calculated as normal, just with a reduced MF, then you make all the payments at one time. You don't avoid the 'rent charge' with a one-pay lease, it's just a reduced amount due to the lower MF.

You are still borrowing the same amount of money, either way.

Think of the discounted MF as an incentive for making the payments up front. Similar to MSD - you give the bank money up front for a reduction in the MF.

You aren't borrowing any money if you are paying everything up front...

mikeredii said:

Hi Michael,

So based on the calculations I did for MF 0.00061 and Residual 58%, with MSRP of 49K and invoice of 46K, I am getting $595 per month before taxes and audi care for a 36month/10K lease. Is it a fair price to pay? Also 36/10 the best value for money? I dnt mind signing for 42mo if tats a better deal. Appreciate your reply. Thank you.

Well first of all, audi care increases the residual 1% so it would be 59%. I would also question whether audi care is even worth it to cover 30,000 miles. You would have to pay out of pocket for the service at 20,000 miles, and maybe (or maybe not) the service at 30,000 since you turn the car in right at 30,000. But that 1 or maybe 2 services is all audi care would cover. So you could reduce monthly payment by not getting audi care. Also, 42/10 is likely a significantly better deal. And you want to pay as little as possible up front. Don't pay $5k up front, pay $1k-$2k at the absolute most, but if the monthly payment works for you, I would try to get away with only paying first month's payment.

Instead of trying to calculate it exactly yourself, you might be better off confirming with the dealer that you are getting the base MF and the correct RV. The calculation gets complex and differs between state's and dealers. Taxes are calculated differently between state's and your dealer will have different fees such as processing fee, dmv fees, etc. So noone here is going to be able to exactly calculate the monthly payments for you.

If you want a deal to compare it with, I just negotiated a deal in VA for pretty much the same car and MSRP that you are getting. I'm doing 42/12 with audi care and only paying the first month's payment up front, and my monthly payment is $600. I got base MF and 8.23% off MSRP.

Michaell

mikeredii said:

Hi Michael,

MSRP $49125, Adjusted CAP cost is 47K including the acquisition fee. He said if I agree to pay $634 month for next 36 months, I can sign for 36mo/10k lease and only first month payment is due at time of lease signing. He said his numbers are based on 58% residual MF 0.00091 and 9% (state+ city+county taxes). I am seeing a $25 dollar difference with a MF of 0.00061 which i felt is okay as I am not doing any down payment. Please share your thoughts on this michael . Thank you for all your help.

I get $635/mo with those numbers.

If you're comfortable with the selling price, all is good.

Michaell

sixsence said:

Michaell said:

msrp20000 said:

Michaell said:

sixsence said:

kyfdx said:

msrp20000 said:

Hi. Can you please share October lease numbers for a 2017 A4 Quattro prestige, 7.5K and 10K miles, for 36, 39 and 42 months? I'm also considering a single-pay lease, which I have never done before. Presumably there is a tax savings (I'm in Texas), but also something called an L&M fee. Can you guide me in how the single pay lease should work, and share MF and reside numbers if they are different from a standard lease?

Thanks.

10K/yr.. add 1% for 7.5K/yr

.00061 MF and 58% residual
.00081 MF and 56% residual
.00081 MF and 54% residual

Single Pay:
Deduct .00060 for 36 months
Deduct .00075 for 39 months
Not available for 42 months

What is single pay?

One payment at the beginning of the lease - it's the sum of the calculated monthly payments; you get a discount on the MF if you do that.

Thanks a bunch for the MF and residual information.

I have a follow-up question regarding the answer to "what is a single pay." I had thought that in a single-pay lease, you pay the depreciation up-front, and finance only the residual amount. If you compute a standard monthly lease, and multiply that by the lease term, aren't you paying interest on money you aren't borrowing?

I would think that the lower MF compensates for the decreased risk from not having a monthly payment. But you should not have to pay the MF on an amount that was paid up-front. If the single-pay is computed by multiplying the standard lease's monthly payment, you can't determine the cost of capital from the MF.

The lease payment is calculated as normal, just with a reduced MF, then you make all the payments at one time. You don't avoid the 'rent charge' with a one-pay lease, it's just a reduced amount due to the lower MF.

You are still borrowing the same amount of money, either way.

Think of the discounted MF as an incentive for making the payments up front. Similar to MSD - you give the bank money up front for a reduction in the MF.

You aren't borrowing any money if you are paying everything up front...

The point of a lease is that you only pay for the part of the car you are using. However, the bank has to buy the whole car, and you pay for the privilege of borrowing it from them for a specific amount of time and for a specific number of miles.

There is still a rent charge, albeit reduced, in a one-pay lease. That rent charge is the equivalent of interest on a traditional loan.

Michaell

Michaell said:

sixsence said:

Michaell said:

msrp20000 said:

Michaell said:

sixsence said:

kyfdx said:

msrp20000 said:

Hi. Can you please share October lease numbers for a 2017 A4 Quattro prestige, 7.5K and 10K miles, for 36, 39 and 42 months? I'm also considering a single-pay lease, which I have never done before. Presumably there is a tax savings (I'm in Texas), but also something called an L&M fee. Can you guide me in how the single pay lease should work, and share MF and reside numbers if they are different from a standard lease?

Thanks.

10K/yr.. add 1% for 7.5K/yr

.00061 MF and 58% residual
.00081 MF and 56% residual
.00081 MF and 54% residual

Single Pay:
Deduct .00060 for 36 months
Deduct .00075 for 39 months
Not available for 42 months

What is single pay?

One payment at the beginning of the lease - it's the sum of the calculated monthly payments; you get a discount on the MF if you do that.

Thanks a bunch for the MF and residual information.

I have a follow-up question regarding the answer to "what is a single pay." I had thought that in a single-pay lease, you pay the depreciation up-front, and finance only the residual amount. If you compute a standard monthly lease, and multiply that by the lease term, aren't you paying interest on money you aren't borrowing?

I would think that the lower MF compensates for the decreased risk from not having a monthly payment. But you should not have to pay the MF on an amount that was paid up-front. If the single-pay is computed by multiplying the standard lease's monthly payment, you can't determine the cost of capital from the MF.

The lease payment is calculated as normal, just with a reduced MF, then you make all the payments at one time. You don't avoid the 'rent charge' with a one-pay lease, it's just a reduced amount due to the lower MF.

You are still borrowing the same amount of money, either way.

Think of the discounted MF as an incentive for making the payments up front. Similar to MSD - you give the bank money up front for a reduction in the MF.

You aren't borrowing any money if you are paying everything up front...

The point of a lease is that you only pay for the part of the car you are using. However, the bank has to buy the whole car, and you pay for the privilege of borrowing it from them for a specific amount of time and for a specific number of miles.

There is still a rent charge, albeit reduced, in a one-pay lease. That rent charge is the equivalent of interest on a traditional loan.

One last point ... I just leased a car a couple months ago. On my credit report, the balance due is the sum of the payments I'm expected to make.

What I don't know - and would like to find out - is if there is any amount due on your credit report if you do a 'one pay' lease.