Audi A4 Lease Questions

CarMan@Edmunds

Hi everyone. Please use the following discussion to post any questions that you have about leasing an Audi A4. Thanks.

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asheh

It might be high... this is what I am looking at and I still think its too high... I also have a G35X with Sunroof for $398/m 36000 and 12,000 miles with $1500 down. The G seems to be the better deal.

Black/Black A42.0 Quattro
Automatic
Invoice 29,315

Premium Package $1,684
Sunroof Package $1,274
D&D $720

Invoice: $32,993
Inception $1500

$1500 Drive off.

56% Residue
..00042 Money Factor

$429.69

gflo1

do you know if the current deal $2k down, $350 month, 10k miles, 2.0t quattro for 2 years applies for the avant as well?

and what kind of monthly payment would I be looking at if I did $0 down for the same time frame except 15k miles?

CarMan@Edmunds

Hi gflo1. Audi's August lease program, which is scheduled to run through September 6th, for these 2006 A4 2.0 Sedan with quattro and 2006 Audi A4 2.0Avant are exactly the same. The only thing that would cause these two models to have different lease payments is the fact that they are priced a little differently. If you provide me with the full MSRP (with the destination charge added in) and an approximate selling price for the vehicle that you are interested in leasing, I would be happy to estimate what sort of lease payment you can expect it to have for a zero down lease with 15,000 miles per year. Post a reminder in this discussion with this information in a few days, by then I should have an idea of what Audi's new September lease program is like. Talk to you soon.

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gpulls

I've got a very similar question. I'm working on a deal to get the last '05 3.2 Avant on the lot. The specs of the lease sound a bit elevated. To get a $450.mo total payment on a three year lease, with only 10k miles/yr, I have to put down over $7K. The MSRP is over $43K, but the selling price is $40,200 (about $750 over invoice). I'm curious how everyone is getting equal payments than my potential deal when they put almost nothing down (on an A4 sedan). Is it the money factor on Avants that's driving the monthly payment up? Do you by chance know what the typical money factor is on an '05 Avant, vs. an '06 Avant? Thanks.

gflo1

auto
premium package
bose premium sound system
17" double spoke rims
15k
msrp $36,670 w/ dest charge

I have not gone into discussions yet for purchasing so unsure as to how much it should cost. However, I would like to know the maximum I should be paying. Additionally, I currently own an Audi, so I was wondering if that loyalty program was still in effect.

thanks car_man

cluelessinla

I need to lease a new car within 4 weeks and have tentatively decided on the 2006 A4 3.2 Quattro. I recently went to the dealership in Santa Monica; they were extremely helpful, but I'm afraid they might take "advantage" of me (I'm female in my late 40's and doing this on my own). I'm interested in a 36 month lease and low monthly payments. I do not currently own an Audi.
Help. Thanks. clueless in LA

mcmuney

Hi, you just missed out on the deal that expired on the 6th. Just to give you an approximate, your payment on any lease would be, at a minimum, $100 higher per month. I'm working with someone who's trying to get me the special offer even though it expired. I'm supposed to know within the next few hours if he can make it happen. If he can, I'll be driving a new Audi.

If it happens, I can refer you to him, but there's no contact info allowed on this post, so I'm not sure how to exchange information.

Here's a tip, DO NOT work with just any salesman, ask for the Internet/Fleet salesman and have an approximate idea of the invoice price. Try to deal from invoice rather then from MSRP.

cluelessinla

Thanks. I found on the net (@ CarPrices) the invoice for this model. It was almost $1200 less than the dealer invoice price I read at the dealership. That's when I became concerned about how I was being treated by the salesperson.

How much wiggle room do you think I have re: invoice price and packages?

I'm curious, why would I ask for the Internet/Fleet salesperson?

mcmuney

Depending on when you buy, you have plenty of wiggle room. I was being offered the car at $1500 below invoice. This isn't because they were willing to take a loss, but because of MFG rebate and incentives that the consumer doesn't know about. However, they'll be more stingy on the 2006 models, I was shopping for the 2005.5, which is the same as the 2006. I don't think they're offering any lease on the 2006 3.2's yet.

But as I said, the money factor is now .0025 from .00072, which expired on 9/6/05. So if you get one now, you'll pay a pretty penny.

Why the Internet/Fleet salesperson? Because when you ask for them, they know that you've done your homework and will try to give you a better deal. A regular salesman, on the other hand, will not even match that deal. One negotiates from MSRP down and the other from Invoice up.

cluelessinla

Thanks for the prompt response.

As my screen name implies I am clueless.

1. What is the money factor?
2. Where did you, as a wise, but mere, consumer find out about the MFG rebate and other incentives? Are these incentives that the MFG offers the dealer? All dealers?
3. It seems like I would do better shopping for a 2005.5 (it is the new body style).
4. A woman's mag referenced a web site thru the better business bureau that rated dealerships. Unfortunately, it was not a viable site. Are you aware of any source (preferably free) that rates the dealerships ala J.D. Powers?

thanks. thanks. thanks.

clueless in LA

mcmuney

I'd highly recommend you use carsdirect and use their services, they can get you a great deal.

cluelessinla

thank you. Your patience (I do have a tendancy to ask too many questions) and expertise (I've contacted carsdirect) is greatly appreciated.

quest3

I am about to lease an 06 A4 2.0 while the current leasing specials are still around (until 30 Nov I believe) 2 yr lease, first payment (369) plus acquisition fees due at signing. Now the vehicle I have picked out has a higher msrp then the model leasing for 369 so I'm obviously willing to have a higher payment. My question is this , can you negotiate on car pricing when your leasing and not buying? It may be an obvious answer to some but this will be my first lease and was not sure. Along with that how much over invoice should I be trying to haggle with assuming you can with a lease? here is what I'm looking at MSRP and what NADA had for invoice. the car I want with its options has an msrp of 37,335. invoice on NADA is 34,791. Now on top of the dealers pricing and this leads to another question they have a dealer mark up of 1,995 (alaskan mark up) dealer prep 250$, a pan heater 200$( cold weather this I need) and something called propack 989$(which is marked as optional) so that brings their selling price to 40,768.. Now with all this info I'm hoping someone can tell me where I need to start at when negotiating the price I will lease it for. I have no intention of getting the propack (dont even know what that is) or paying the alaska mark up or the dealer prep. Is this being realistic or will I have to pay this? If not that takes off 3,234$ of their asking price of 40,768 bringing the total to 37,534 about what the MSRP was originally. All that mark up, dealer prep, propack seems like bull crap to me, is it? Any help would be appreciated and soon please, also keep in mind this is the only Audi dealer in Alaska so if I leave with out the car I cant just go to the next town to another Audi dealer. And this is the only car I want. I am not trying to get the car for invoice or 200$ over invoice just something reasonable for both parties cause I cant see paying exactly what they are asking, is 1500 over invoice appropriate perhaps? Help please anyone with knowledge on pricing and leasing..

CarMan@Edmunds

Hi gpulls. Let me begin by saying that you definitely do not want to make a $7,000 down payment on a lease! I always advise consumers against making any sort of down payment when leasing. I do so for two main reasons. The first is if your vehicle is totaled in an accident or stolen during your lease, your insurance company pays off the bank that you were leasing it through and your down payment essentially disappears. The second main reason is that down payments on leased vehicles do nothing to reduce their lease-end purchase prices. So your lease-end purchase option price for your A4 would be exactly the same, regardless of whether you had put $7,000 down, or had made absolutely no down payment at all.

The selling price that you were quoted for this car is a little on the high side. While at first $750 over invoice seems reasonable, once one take the fact that Audi is currently providing $2,500 dealer cash on this car into account it is more like $3,250 over invoice. You need to renegotiate this car's selling price and then have the dealer that you are working with calculate your lease payment using Audi Financial Services buy rate lease money factor of .00270, or better yet find an independent bank that bank that has a better lease program and run it through that.

While it is not providing any dealer cash on the '06 version of this wagon, its lease program is much more attractive on it. Its 3 year, 10,000 miles per buy rate lease money factor and residual value for a 2006 A4 3.2 Avant are currently .00155 and 57%, respectively.

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CarMan@Edmunds

Hi gflo1. I really can't calculate a realistic lease payment on this vehicle for you without some sort of selling price. For now I can calculate one for you using a selling price of $1,000 under MSRP, which you should be able to beat. If you were to lease a 2006 Audi A4 2.0T Avant with an MSRP of $36,670 and a selling price of $35,670 through Audi Financial Services right now for 36 months with 15,000 miles per year, its zero down, pre-tax monthly payment should be around $477. I do not believe that Audi is currently offering any owner loyalty cash on this model.

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CarMan@Edmunds

Welcome clueless in LA. Since you are new to the world of leasing, you definitely should check out the following informative articles that are available here at Edmunds.com prior to visiting any dealers: 10 Steps to Leasing a New Car and Calculate Your Own Lease Payment.

The two most important numbers to focus on when leasing are your vehicle's selling price and the lease money factor that is being used to calculate your monthly payment. These are the two main profit centers for dealers on leases. The selling prices of leased vehicles are negotiable, just as if you were paying cash for or financing them. You may be able to get a good idea of how much you will have to pay for the car that you are interested in by visiting the following discussion: "Audi A4: Prices Paid & Buying Experience". Once you have negotiated an attractive selling price, have the dealer calculate a lease payment on your car using Audi Financial Services "buy rate" lease money factor. If you do not insist upon the dealer using the buy rate, which is currently .00220 for a 2006 A4 3.2 Quattro sedan there is a chance that they will try to mark up this car's factor to add additional back-end profit to your deal.

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CarMan@Edmunds

Hi quest3. The selling prices of leased vehicles absolutely can and should be negotiated, just as if you were paying cash or financing. The exact amount over dealer invoice that you are able to negotiate will vary from model to model. You may want to stop by the following discussion to get an idea of how much you should pay to lease the car that you are interested in right now: "Audi A4: Prices Paid & Buying Experience". The prices that you find posted in this discussion will likely be lower than the one that you eventually end up paying because you are in a market, Alaska, where there is not much competition for your business. I suspect that you already know this but just in case you don't, I have heard that it is actually cheaper for many Alaskans to purchase their vehicles in other states, such as Washington, and have them shipped home than it is to pay the large mark-ups that Alaskan dealers charge.

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nick_metro

Hi Car_Man,

Can you tell me the money factor and residual values on the 2006 A4 2.0T Quattro Sedan for 24 months with 15k miles per year? Also, can you tell me how much dealer cash Audi is currently providing?

Thanks for all you do!

bigdveedubgirl

I can help you too.......

The residual value on a 24 mo 15k is 73% and a converted lease rate of 3.336%. There is no cash back on 06 models right now..... :P

Leigh

nick_metro

Thanks so much bigdveedubgirl!! Those are the exact numbers quoted by the dealer.....Any thoughts on getting this car at or close to invoice?

Thanks Again!

bigdveedubgirl

It just depends on what car it is and what Market you are in. As you know Audi does not have holdback, so what what profit over invoice is it. No 2% kickback. The markup is 1200-2000 depending on equipment on a 2.0tq A4. According to TMV Sticker is market value. But if the car you are looking at is an in-stock vehicle, you can ask for about 800 over invoice, but I can not guarantee you will get that. Since you were quoted the buy rate on the lease factor, even at sticker you would be getting a great deal. Some dealers might offer you close to invoice, but they probably will mark-up the lease rate. Profit needs to be made somehow. Please let me know what kind of offers you get.

nick_metro

I am in NJ. The car has the premium and sunroof pkgs, MSRP is 35385, invoice is 32879. I could care less about the sunroof however I can't find one without it. I was offered 1400 over invoice. Works out to be $434 mo /24 months + Tax, Motor Vehicle fees ($259), acquisition fee ($575) and a $129 doc fee. The dealer has been up front with me with regard to the buy rate and residual, which I am happy about. If we get to about 750 and over invoice and lose the doc fee we will have a deal this week. If not I move on, no regrets...Should be fun!

I really appreciate your input! I will let you know how it goes....

bigdveedubgirl

You sound like you have a very very fair deal. What a high doc fee!! $750 over is going to be difficult, like I said, NO HOLDBACK. Since the dealer is giving you buy rate, try to get a 1000 over. Doc fees are not really negotiable. If you go to another dealer, they might give you a cheaper price, but charge you higher rate. Make it easy on yourself. Since you are leasing you are only looking at a 12 dollar difference in payment. Most Audis come with sunroof package. You are already way below TMV so if they do not budge, you are still getting a awesome deal.

GOOD LUCK!!!!

rprettitore

In NJ too and received a quote for 2006 A4 2.0 Quattro Metallic Paint, Premium, Cold Weather, Sunroof, Headlight Washer. 24-months lease 10K miles. MSRP is $35,935 and cost $34,080.
Deal
$1744 Down Payment $394 per month.

Is this a good deal??

bigdveedubgirl

What is the selling price of the Vehicle? 1744, is that total out of pocket? (Also called initial investment) Sounds good to me!!! In regards to pricing, you really can't get screwed out of thousands of dollars. There is an average markup of 1500 on an A4........

rprettitore

selling price is $34,080 ($700 above invoice of $33,380). The 1744 is the total out of pocket and includes Tax, Title, registration and doc fees.

ozzynyc

Was it $394 included taxes? What's the name of the dealership and the city. I've got a quote from Zumback in NYC and it was around 450 a month, similarly equiped. I think this is a great deal, considering i was quoted $437 for a 2005 acura TL, that had a selling price of just $30,800 and that was for 42 months will $1200 up-front! The only MAJOR issue i have with A4 is tha it's small. It's very narrow in driver side (i test drove it twice) compared to mid-size cars and there is NO leg room in the back if i move the driver sit to a comfortable position. It's nice and tall, but not wide/long enough .... Yet, the price is great!

nick_metro

rprettitore,

Just an FYI.

I was quoted $390.70/mo with $1557.06 oop which included tax for 24 mo 10k.
I was also quoted 429.00/mo with $1595.00 oop which included tax for 24 mo with 15k miles. What I have found through discussion with dealers in NJ and also this forum (thanks to bigdveedubgirl) is that the markup is usually around 1k with little wiggle room - so far anyway. Even without the wiggle room I think it is pretty apparent that this model "leases" very well right now.

Hope this helps.

-Nick

mooselook

Hey Car Man...
I'm trying to decide between an A4 and a BMW 325i. With regard to the Audi, I configured a car on their website and the MSRP came in at $35,445. According to the Edmund's TMV, people in NJ are paying MSRP. Assuming I can get this car for MSRP or maybe $1000 below, what do you think the lease payment might be for a 15,000 Mi 3 yr lease and what is the current money factor, etc.? I'm in NJ, if that makes a difference. Also, how frequently does the money factor or other lease deal variables change? I plan to get my new car within the next 2 months. Finally, can you provide a link to a forum where I can ask similar questions re: BMW 325i?

Thank you, Sir!

***Mooselook***

CarMan@Edmunds

Hi nick_metro. Here is the information that you are looking for. If you were to lease a 2006 A4 2.0T Quattro Sedan through Audi Financial Services right now for 24 months with 15k miles per year, its buy rate lease money factor and residual value should be .00139 and 73%, respectively. While Audi is providing dealer cash on 2005 A4s this month, it does not have any sort of cash support on '06 models.

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CarMan@Edmunds

Hi Mooselook. Despite the fact that this car's Edmunds.com True Market Value is full MSRP, in a competitive market like the one that you are in I suspect that you should be able to get a 2006 Audi A4 for around $1,000 or so over invoice. For the purpose of calculating a lease payment for you I will assume a discount of $1,000 off of full MSRP as you suggested. According to my calculations, if you were to lease a 2006 Audi A4 2.0T quattro sedan with an MSRP of $35,445 and a selling price of $34,445 through Audi Financial Services right now for 3 years with 15,000 miles per, your zero down, pre-tax monthly payment should be around $453. I used a money factor of .00139 and a residual value of 59% to arrive at this payment. Audi's current lease program for this car is scheduled to run through October 4th. Stop by the following discussion to ask any questions that you have about leasing a 2006 BMW 325i: "BMW 3-Series: Lease Questions".

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nick_metro

Thank You Car_man!!

jccai1

Hi Car_man! I've nevered leased a vehicle and am considering it. Just curious, how do you figure out the money factor and residue for each individual scenario that people ask you about? The money factor seems to be different in each scenario, why is that? Thanks.

mcmuney

No problem, I hope you get good representation from carsdirect. I just picked up my car last night (purchased it). Good luck!

mooselook

Thanks for the help, Car man!
***Mooselook***

skenterprises

Hello,
I saw ur forum and was wondering if you could help me. I've never leased a car and plan to lease an Audi A4 2.0T Quattro. I live in the Dallas, TX area. The MSRP of the car I have is $36,710 (Pemiium, Sunroof, S-Line Pack) + $720 Destination. The invoice is $34,005.

I recall in one of your posts last week you had said that Audi is offering $2500 dealer cash for this car. I asked Audi and they claimed to not know anything about this. Is this the case? I am looking for a 15K mile 24 or 36 month lease. What do you think my payments would be like respectively and fair? I know that Audi is offering special lease offers till Nov, but do you know what I should expect to pay out of pocket upon signup so they don't tack up fees?

I appreciate any feedback you can give. i just graduated college and this will be my first car lease and I don't want to be had. I would really be thankful for any of your expertise.

Thank-you again

Sincerely,
Steve K

acura_tl

MSRP: $36,710 + 720 = $37,430
I am assuming a Selling Price of $36,000 and MF = 0.00139

The monthly payment for a 24 month/15K mile lease should be 449 + tax
The monthly payment for a 36 month/15K mile lease should be 467 + tax

You should expect to pay the first month's payment (+tax), tag, title and the acquisition fees (about $575) upfront.

Hope this helps.

CarMan@Edmunds

You're very welcome nick_metro.

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CarMan@Edmunds

Hi jccai1. Manufacturers publish lists of lease money factors and residual values for vehicles and give them to their dealers. I am often able to get a look at these lists because I know a lot of people in the industry.

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CarMan@Edmunds

No problem Mooselook.

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CarMan@Edmunds

Welcome Steve. Since you are new to the world of leasing, you definitely should check out the following informative articles that are available here at Edmunds.com prior to visiting any dealers: 10 Steps to Leasing a New Car and Calculate Your Own Lease Payment.

Audi is currently providing $2,000 dealer cash on 2005 A4 2.0T models. Make sure to take this cash into account when negotiating your capitalized cost on this car. This dealer cash is not available on the '06 model. Any salesperson who claims not to know about the dealer cash on the '05 model is either really uninformed or is lying to try to get you to pay more than you should.

Let's calculate a sample lease payment on this car for you and see what we come up with. For now I will assume that you are paying $1,000 under invoice for the car that you want, if you are able to negotiate a better deal than this your lease payment would be a little lower. According to my calculations, if you were to lease a 2005 Audi A4 2.0T quattro sedan with an MSRP of $37,430 (including destination) and a selling price of ($34,005 invoice + $720 destination - $1,000), through Audi Financial Services right now for 24 months with 15,000 miles per year, your zero down, pre-tax monthly payment should be around $578. The payment for an otherwise identical 36 month lease should be $559. With these leases, at signing you would have to pay your vehicle's first month's payment, a security deposit of $600, AFS' acquisition fee of $575, and any required state taxes or fees.

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rjlaero

Just be aware that you CAN'T use dealer cash on a lease or purchase thru Audi Financial Services. This money is given in lieu of any finance or lease specials, and you'll have to finance with a different bank or lease company to get the dealer cash.

Also, dealer cash is something that is given to the dealer and used at their discretion. A dealer doesn't have to sell you anything @ 2000 below invoice. You''ll have more negoitating power depending on the inventory and the number of cars they have on the lot, and if you'll take something in stock vs locating a car somewhere else in the country they don't have.

skenterprises

Thank-you for the feedbacks, I really appreciate it.

I'm confused, according to one of the replies above (Acura TL), my payment should be about $469 with a Selling Price of $36,000 and MF = 0.00139 for 36 months. A coople of replies after that (Car_Man) has it at around $559 a month with almost the same selling price for 36 months?

According to Audi's site, an A4 Quattro with a selling MSRP price of $34,000 leases for $369 a month for 24 months at 10k miles per year (in the fine print)

I am more inclined to beleive that the Audi that I want (2006, I have to have S-Line Pack!) with a selling price of around the same $34,000 for 36 months as opposed to 24 months AND 15K miles/yr opposed to 10k/yr should be closer to the $469 a month payment, right?

The car I want sells for around the same price as the one listed on the Audi website ($34,000) and the only difference being is the length of lease (36 months) and the miles//year (15K).

I don't know which one to go on, I an inclined to assume the $469 payment is more accurate. Can the change from 15k miles and 36 month lease bump the montlhy price $200 a month?

Please help! I am even more confused now!

christin

I've been bouncing between the A4 and the BMW 3 series and I think I am going with the A4. I have 2 lease options.

Option 1 - 0 down 369/mth 10,000 miles for 24 mths. MSRP is 33060 and includes the sunroof package and 6 speed triptronic end of lease value of 25,125.60.

Option 2- Same thing but $439 down and the car includes a little more, almost exactly what I am looking for. Premium pkg, sunroof pkg, cold weather pkg, 6 speed triptronic. The only problem is that I want a manual transmission not an automatic.

I tried to negotiate a lower lease price due to the difference in the MSRP form one dealer with no luck, I was told that the manual transmission drops the residual value too much to make the difference. With lease option 2 do you think it is possible to have them waive the $439 down payment in lieu of a manual in place of the triptronic?

I was told that you can really negotiate leases but I don't understand why, the model I want costs less, I should pay less.

Christin

mooselook

SK, what is the "S-Line pack", anyway?

***Mooselook***

vinayg1

Hi everyone.

This is the first time I am considering leasing a car. Do the dealers give you hassels at the end of the lease and try to add on extra fees? e.g. what if there is a scratch or a small dent (like a shopping cart damage).

I would really appreciate some input from all you leasing pros out there.

Thanks in advance.

cluelessinla

Thanks for all of the help. I'm not nearly as Clueless as I was when I began my foray into the forum.

$36,912 is the Cap Cost, I've been quoted by the dealer for an A4 3.2 quattro with automatic, plus the sunroof and premium packages, including pearl effect paint. The residual value(after 36 months andd 30,000 miles) is $24,450 and is based on a money factor of .00255. Is this a good deal? (It's more than $1800 less than CarDirect.) Oh, and includes a free loaner whenever the car needs to be serviced.

thanks.

PS Does the Cap Cost include tax, license and registration fees?
PPS. Included in this price is the 1% advertising fee. The leasing manager refused to budge.

mooselook

I returned a 1999 A4 at lease end and received no hassels at all, plus 100% of my security deposit back. I have since leased a 2003 Saab, which I will be returning in November. They sent me a brochure to prepare me for lease turn in. In it, they say that tire tread must be a minimum of 1/8th inch, Dings, dents and scratches on exterior panels must be less than 2", windshield cracks or stars must be less than 1/2" and interior burn holes must be less than 1/8" to be considered "normal" wear and tear.
I am anticipating no problem with this turn in.
I think that if you take reasonable care of your car, you probably will not get whacked with any fees. On the other hand, if your car has damage, you may as well get it fixed right when it occurs and enjoy it for the rest of your lease, rather than drive a dented car for 3 years and then pay at lease end.

jblaze13

Question for Car Man. In Chicago, Audi is offering a lease for 24 months, 10k miles/yr, $575 acquisition fee with $0 down. They are advertising a payment of $389/mo. The price of the car they are using is $35,310 (2006 A4 Quattro w/automatic, premium pkg, sunroof pkg, and cold weather pkg. Can you provide the money factor & residual they are using in a deal like this. I want to make sure they aren't changing terms when I see the actual numbers.

I'd like to up the mileage to 12k/year. Any idea what that would change things?

I wonder if price is still negotiable on a deal like this?

vinayg1

I also have a question for CarMan

In the NY NJ tristate area the deal is $369/mo with MSRP of $35,310 but with a down payment of $439. (Its on Audi web-site under Regional Offers).

If I can negotiate the price down to, say $34K, how will the deal be affected? Will the monthly payments be reduced?