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Can you please provide lease costs?

mgreillymgreilly Member Posts: 1
edited March 2016 in Audi
Hi -- I'm looking to lease a new 2015 leftover Audi SQ5, and I'd like to check on the costs as the numbers provided by the dealer seem high to me...

I'm looking at an MSRP of $61495, with a residual of 31,408 (51%), and money factor of .001. I'll put $3000 down on a negotiated price of $50,000 (It has sat at the dealership for at least 6 months so they want it gone!). Considering a 36 or 42 month lease with 12k miles per year -- He is claiming $675.46/mos, when I run the numbers I come in in the 500's... So one us is doing something wrong... Any thoughts? Thanks for your help with this!

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    kyfdxkyfdx Moderator Posts: 237,185
    mgreilly said:

    Hi -- I'm looking to lease a new 2015 leftover Audi SQ5, and I'd like to check on the costs as the numbers provided by the dealer seem high to me...

    I'm looking at an MSRP of $61495, with a residual of 31,408 (51%), and money factor of .001. I'll put $3000 down on a negotiated price of $50,000 (It has sat at the dealership for at least 6 months so they want it gone!). Considering a 36 or 42 month lease with 12k miles per year -- He is claiming $675.46/mos, when I run the numbers I come in in the 500's... So one us is doing something wrong... Any thoughts? Thanks for your help with this!

    If the CAP cost is $50,000, then the payment with your lease variables is $599/mo.+tax.

    Don't know if those are the correct variables, as we don't show a lease program for the 2015 SQ5.

    I didn't attribute any CAP cost reduction to the $3000, as we don't know the breakdown of that amount. You'll have first payment, $795 acquisition fee, title/license/doc fees.

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    ken117ken117 Member Posts: 249
    The monthly lease payment for a capitalized amount of $47,795 ($47,000 plus acquisition fee of $795) and MF of .001 and residual of $31,408 is about $534 for a 36 month lease. If you include sales tax of 6 percent on $50,000, the monthly lease amount is about $620.

    To get to $675, the sales guy would need to increase the capitalized amount from $47,795 to $52,695.

    Obviously something is wrong, either with your numbers or the sales guy is pulling something.

    To compute a lease payment, there are two calculations:

    First, subtract the residual from the capitalized cost and divide by the number of months. ($47,795 - $31,408)/36 is $455.

    Second, add the capitalized amount and the residual value and multiply by the MF. ($47000 + $31,408) X .001 is $79.

    Add the results of these two calculations to get the monthly lease payment. ($455 + $79 = $534)

    And remember, any document fee the dealer attempts to charge is not a fee of any kind. It is simply part of the price. The cost to prepare documents is a dealer cost. Price, by definition, includes ALL DEALER cost plus profit. Dealer F&I people came up with this fake fee tactic to increase profit as well as to advertise a lower price to attract people to the dealership).

    The dealer has many costs, the preparation of documents is just one and not a major cost in any case. Why don't they attempt to charge a fee for each cost?

    The dealer will not remove the doc fee from the contract, if they do they run the risk of being sued for not charging it to everyone. However, there is no legal or other requirement for you to pay the doc fee.

    To counter this fake fee, I simply reduce my offer to cover the fee.

    Example, my daughter recently bought a new Tacoma. I warned her about the doc fee When she entered the F&I office, the F&I sales person (they are just the dealer's best sales people) attempted to add a $250 doc fee. She balked and threatened to walk. The dealer immediately increased the value of her trade by $250.
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