Audi A4 Lease Questions

goscfighton

Hi Carman,

I'm looking for the current Audi Financial lease info.

I'd like to compare money factors and residual percentages for both the A42.0 quatro and the 3.2 quatro (2006).
length of lease==24 and 36 months.
milage==both 12,000 and 15000.

This would be a great help. I see that the Honda leases appear to be a good deal also, so I'm trying to compare.
If anyone knows how the Honda Accord V6 stacks up against the A4 2.0T quatro--I'd love to hear your opinion.
Thanks.

msmrugby

I am in the process of purchasing an A4 with Quattro Premium Package/Sunroof. Sale price is at $33,087. I will be paying $420/month which will include 22,500 miles a year. Is this the best I can get for the A4?

casanova2

22,500 miles/yr?

yammers

casanova,

i am located in pittsburgh, not far from you (go stillers!) i came across your post on the deal you recieved on your Audi A4 2.0 Quattro. i'm interested in an a4 2.0 quattro as well with leather, sunroof and heated seats at the least. I would like it for 12,000. i must admit that i am a novice. could you help me understand how you were able to negotiate your price down that low? also why are the residuals so important for a lease? additionally, can you help me understand the multiple payment option?

i am not opposed to driving out to cleveland to purchase. i just began initial discussions with dealerships in pittsburgh today. so far, i have one quote for a A4 2.0 quattro sedan with heated leather seats, satellite and sunroof only for $512 a month (including pa tax of 10%). i know this is entirely too high..but i wanted to see what he would throw out the first round.

any and all help would be really appreciated. thanks!

amy

casanova2

Amy

Before you decide to lease an Audi, configure one from the Audi web site or, preferably, the Edmunds.com web site. This will tell you not only MSRP on your desired vehicle but also invoice.

Armed with this information, find out what your money factor is from the dealer in Pitt that you spoke with. Find out whether they are using Audi's money factor of 0.00139 or not (without giving away that you know what it is). Ask them what residual value they are using for 12,000 miles/yr.

The residual is important because you are paying for the difference between what the car was worth when the lease began and what it will be worth at the end of the lease.

PA tax - I used to live in Philadelphia and I could swear Philadelphia county tax was 7%, is Pitt that different?

Get all the facts without committing to anything then come back to this forum and post and discuss.

msmrugby

They have structured my plan to include 45,000 miles to use in the next 2 years. I am not held to just 22,500 a year. It is an aggregate plan.

gregga

I was offered a residual of 74% for 12K and a MF of .00165 on the 3.2. This is worse than the 75% and .00139 offered on the 2.0. Can anybody confirm these numbers? Did anybody receive better offered terms for the 3.2? Please let me know.

hobbitfan

I'm shopping for a 2006 A4 Avant 3.2 w/Sunroof, Premium, Tech, S-Line and Nav+ in Southern California. Does anyone know the residual % and money rate based on a 24 month lease and 10,000 miles/year?

Thanks!

yammers

MSRP = $35385
Selling price = $34025
Audi money factor = .00139
Residual for 12k = 74%

Yes, there is 10% sales tax in PA

I used the lease calculator and it turned out to be $450.

He offered me $449 a month for 24 mo for 12k ....

Is this right? is this a good deal? as good as it gets? did i miscalculate?

Amy

lamusic

Casanova2,

I am new to leasing, and something you said struck me as interesting: Why don't you want the dealer to know that you know what the base MF is? Once they give you the selling price you want, why wouldn't you demand the base MF and the highest residual?

Thanks!

casanova2

Your deal looks good to me. I hate your tax situation but it's kinda hard to argue with the PA government.

I would check your residual. For the 2.0T Quattro for 12k/yr it should be 75%, not 74%. I do not have numbers for other models but if you post exactly which car you're after then I'm sure someone here could comment.

Your selling price looks good - $1,360 under invoice. I'd say you've done well. Make sure they're not quoting you a 2005.5 model!

Other than that you look on the money. Your money factor is fine and you could also ask about MSDs. I calculate the return on MSDs to be just over 14%, very good indeed. MSDs are fully refundable and if you can put the cash up you can save real money and make it work hard too. Good deal all round.

Enjoy, seems like you've got good numbers except for the residual.

casanova2

I have dealt with enough car dealers to know that not all of them are honest, upstanding citizens - many are, but not all. By not revealing that you know the MF, you can find out whether the dealer is playing with you and, potentially, just walk away. If you KNOW that Audi finance is charging 0.00139 and your dealer offers 0.00150, something's wrong. Now some dealers use other financing outlets, not always Audi, so that could account for it, but unless you've got some idea of the game you're playing you risk being played yourself.

I'm all for negotiating fairly and in the case of a car purchase/lease I believe the buyer should be the one that comes out feeling good, the car dealer always makes money regardless of the BS he feeds you.

yammers

thanks for your response! i will check with the dealership

can you help me understand what MSD's are and how I can save money by using one?

Thanks!

Amy

lamusic

Thanks, Casanova2! I understand and agree....

barut77

Hello Everybody,
I just made a deposit for A4 2.0L Turbo CVT with
Sunroof Package
Dophin Gray Metallic Color

The MSRP runs for $31,710.

Here's the deal I got:
24 months 12K/year
Selling Price: $30320 (
I got $1390 off the sticker since I originally asked for a Black w/ prm. package)
Money Factor: 0.00127
Residual: 74%
Will pay:$3338 (1st month lease + about 1338 inception + 2000 dwnpymnt)
Monthly Payment: 287 + 7% (miami-dade tax) = $307 per month

I realize that you usually discuss a 75 percent residual for 24k for 24 months. But the money factor was .00127

Do you think the dealer is giving me a good deal with these figures?
My first option was to get a black A4 2.0L Turbo CVT with premium package+sunroof. Which had a MSRP of $32810. They offered me a deal for $298 + tax for the same dwnpayment and inception terms. But they would not have black before end of JAN 2006. So they could not promise to honor the same terms at that date?

Any suggestions? Should I take what I am being offered?

casanova2

My advice: don't even think of placing a $2,000 downpayment. Use the same money instead as multiple security deposits (MSDs) that have the effect of reducing the money factor. Big difference - MSDs are refundable, downpayment is not. Plus MSDs "work" for you in the financial sense; you should see a 15% virtual return on your MSD money, you get none whatsoever on downpayment cash.

Your MF is otherwise good - better than the 0.00139 that Audi is offering. Residual might be different for CVTs than for Quattro I suspect but maybe the dealer gave up something with the lower MF and took with the lower residual? You should ask. The Audi web site will have the residual value for the 10,000 mile/yr deal, subtract 1% to get the 12,000 mile/yr deal.

Obviously when you factor out your downpayment your lease payment is going to rise but don't be fooled - you're doing yourself a financial favor. Go the MSD route.

indy_driver

Hi Car_Man,

Can you please tell us the December MF and residual for the 2006 A4 1.8 Cabriolet on the 24-month and 36 month leases at 10k per year?

One dealer is quoting 0.0026 which seems quite a bit higher than the going rate of 0.00139 on the A4 sedans.

Thanks !

rjlaero

Cab's are a totally different situation. Audi is really pushing the A4 sedans with the lease special, but there are no special money factors or interest rates on the convertibles right now.

mori2

I live in Morris County, NJ and am interested in the leasing rates for a 2006 A4 quattro, auto. with premium and sunroof packages 36 mo., 12K and 15K rates with no money down. What are the money factors and residual percentages? There doesn't seem to be too much discussion on the bottom line monthly figure.

goscfighton

I have the same question as mori2.
I'd also like the rates and percentage for 24 months and 15K.
Thanks.

fuddruker

First off, I wanted to thank all the contributors of this forum. It is an outstanding resource for anyone looking to buy or lease a car.

Here's what I've been able to negotiate:
2006 Audi A4 2.0T quattro with Sunroof, Premium, and Technology packages.

MSRP: $36,685
Selling Price: $35,284 ($1400 below MSRP)
Residual: 76% or $27,880
Money Factor: 0.00139

$1538 up front (incl. acquisition fee, 1st mo. payment, tax, title, license, etc.)

Monthly payment: $396, $422 with taxes

Is this a good deal? What do you think Car Man?
Thanks in advance...

fuddruker

Forgot to mention...24 months, 10k miles/year...

CarMan@Edmunds

Hi everyone. I've been away on vacation for a little while. I'm going to answer any questions that have been posted over the past couple of days. I would appreciate it if anyone who has an older question than than that they would still like to have answered would post it again. Thanks and Happy Holidays.

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CarMan@Edmunds

Hi indy_driver. If you were to lease a 2006 Audi A4 1.8T Cabriolet through Audi Financial Services right now for 24 months with 10,000 miles per year, its buy rate lease money factor and residual value should be .00295 and 76%, respectively. The numbers for an otherwise identical 36 month lease should be .00295 and 64%. As you can see, Audi's money factors for A4 convertibles are much higher than its factors for sedans.

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CarMan@Edmunds

Hello mori2. If you were to lease a 2006 Audi A4 2.0T Sedan with quattro through Audi Financial Services right now for 36 months with 15,000 miles per year, its buy rate lease money factor and residual value should be .00139 and 59%, respectively. The residual value for a lease with only 12,000 miles per year would be 2% higher.

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CarMan@Edmunds

No, goscfighton, the numbers for a 24 month lease of this car are not the same as they are for a 36 month lease of it. I would be happy to tell you what the 2 year lease program is like though. If you were to lease a 2006 Audi A4 2.0T Sedan with quattro 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 .00139 and 73%, respectively.

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CarMan@Edmunds

You're welcome, fuddruker. While it doesn't sound like much, a $1,400 discount on this car is actually fairly reasonable. The A4 doesn't have a huge spread between its MSRP and invoice prices like a number of other luxury models do. A base 2006 A4 2.0T Sedan with quattro only has a little over $2,100 spread between these two numbers.

Furthermore, the money factor and residual value that you were quoted for this car are right on the money. I just double checked the lease payment that you were quoted and I came up with the same number, to the penny. If you like this car, I personally don't see any reason not to pull the trigger on this deal.

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fuddruker

Car_man,

Can the $350 disposition fee be waived or negotiated?

Thanks in advance

cjeric

I'm thinking of taking advantage of the current leasing offer on the 2006 A4 2.0 T FrontTrak CVT Sedan with the sunroof package.
I'm new to leasing, so I definitely would appreciate any advice. The deal is based on a MSRP of $30,960, 24 months, 10,000 miles/year, but I'm not sure what the money factor and residual are. I assume they would be 0.00139 and 75%, but could anybody verify this?
Also, it was mentioned that the spread between invoice and MSRP is normally around $2,000, so should I be able to negotiate a selling price around $29,500? Finally, are the acquisition fee of $575 and the disposition fee of $350 non-negotiable? Can you also increase the mileage to 12,000 on this deal and keep the same money factor with only a slightly lower residual? Thank you!

cjeric

I was doing some math on this one, and it seems like the selling price would already be discounted to about 29,820 in order to come up with the lease payment of $349. Is that normally the case with these offers?

rjlaero

The Ad on the Audi website needs a dealer contribution of around $1000 off MSRP to meet the monthly payment of 349/369.

casanova2

Acquisition fee and disposition fee are non-negotiable far as I am aware.

You may get $1,000 off MSRP but on a base model with less wiggle room between MSRP and invoice don't bet on doing much better. If you add packages you might be able to squeeze an extra $500 off but don't push your luck. From what I hear the A4 sedans are moving briskly and your negotiating leverage is somewhat low.

The mileage going to 12,000/yr only changes your residual by 1%, from 75% to 74%. The money factor stays the same. Consider MSDs to reduce your money factor, I calculate the return on investment of the MSD to be 14% per annum for the Audi A4 deal.

cjeric

Thank you casanova2. I figured that if they have already taken 1,000 off that there wouldn't be much more room to negotiate.
That's good to know that the residual would only be one percentage point lower with adding the 2,000 miles/year. That could save up to $700.
How does MSDs work? How do you use them to reduce the money factor?

dwdm

Just closed the deal on an A4 2.0T quattro tiptronic sedan with:

Sunroof
Premium
Technology
Dolphin Gray Metallic

MSRP: 37,435
Invoice: 34,745
Selling Price: 35,545
24mos, 12k/yr, $0down
MF: 0.00139
Residual: 75%
Monthly: $399

Excellent info on this forum. Thanks to everyone that's contributed!!

ej1111

Looks good. Do you mind sharing where you got this deal? What was your out of pocket at signing?

j

rws0131

Car_Man,

Do you happen to know anything about the rate on the 24 month premier purchase? I have a trade and the dealership told me about Audi's Premier Purchase. No acq fee, tax on the whole price, same as lease but it's a buy with the same residuals and 12,000 miles a year for 24 months. I would like to know the rate b4 I go to the dealership...Thanks.

RWS

nyccarguy

Does your price include tax?

ivandrago

The dealership I bought my car from was really trying to push the Premier Purchase which is essentially the form of baloon financing. The rate was little over 4%, I chose to lease at 0.0139. Just FYI.

clarky81

Yesterday I leased an Audi A4 quattro with sunroof package, heated seats, 17" alloy wheels for $389/month and $1300 Due at signing for a 36 month/12K miles lease. Was this a fair deal? Car's MSRP was 34,900.

dwdm

The dealer is in the NY Tri-state area.

My OOP was:
575 (bank fee) + 399 (1st month payment) + taxes, DMV, etc.....

dwdm

No, price does not include tax. I paid the sales tax up front

rws0131

I found out it's 4.25% for 24 months. The premier purchase works out better if you have a higher trade. No acq fee, but you pay tax on the whole purchase price.

aka5

Hi Car Man,
Happy Holidays. Thanks very much for getting back to me. But i am stuck again. That deal was a mistake the salesman claims. I have got a new deal. Selling price of $36,987, 2 yr lease, 12,000 miles per year. I am putting down $2,200. The buy rate is 1.39, and the monthly payment with tax is $433.
I have placed the order but the salesman has not done my credit check and just gave me something with the price of the car and estimated build time. Also he rang last night to say that Audi are no longer offering rate protection and they increased the price by $600 but, he will confirm this on Monday. Can you tell me if this is true please as i feel i'm being jerked around by this car salesman.

Thanks Car man and wish you a Happy New Year.

aka5

Hi Jon,
I am in South Florida too. Which is the best in your opinion out of the three. As i hope to lease one soon.

casanova2

I am in Cleveland, OH, I got the exact same model as you except in white, same option packages though. I also have a monthly of just under $399 + tax, comes out to $425/mo once tax added on.

ej1111

Do you know how long the current programs for the A4 and a4 quattro will last for 24/12k miles? Is there any indication audi will maintain its current program through january?

Thanks

nyccarguy

Thanks. I like to roll taxes into my leases for the same reason I never put a down payment on a lease. If the car gets lost or stolen, good luck getting your money back from Albany, Trenton, or Hartford...

spencermfi

Is the fun over? the audiusa.com site no longer lists any lease deals on the A4 (or A6 for that matter). Does anyone know if the AFS money factor and residuals have changed?

cjeric

I believe it will continue. I was at the dealer a couple of days ago, and they told me that they just had gotten the word that the A4 lease special will continue until the end of the month. I certainly hope they were not mistaken when they told me that.

rjlaero

The fun may indeed be over for now. But I hope Audi will have some agressive lease deals to cary over. More than a few dealers are nearly sold out of 06's until more cars can be delivered. Business was very good from Sep thru the 1st of the year with the lease special.

Also, the MSRP on A4's built after Jan 1 will got up $600 across the board.