Audi A4 Lease Questions

desgnconcpts · December 2006

"Trading" in a car doesn't make it a bad deal -- but in effect it does if the trade-in value was simply used to reduce the capitalized cost which in turn will lower the per month payment. See my earlier post and those of Car_Man throughout these leasing forums -- he always advises against putting money down (and a trade-in is effectively the same thing).

If you total your new car and let's say your trade-in was worth $5,000 and that was used to lower your capitalized cost, when the insurance company pays out - YOU don't get paid to reimburse you because YOU don't own the car. Audi Financial Services gets paid -- THEY own the car and THEY will be made whole with the insurance payment.

If, in my example, you put $5,000 (your trade) into it, you will NEVER see that money again. However, if you ask the dealer to cut you a check for $5,000, you can put that money in a CD and you'll still have it, even if your car gets totaled.

The bigger thing to remember here -- if the dealer now has to pull the trade out of the lease (which would bring the capitalized cost back up by $5,000 in my example), you will see a corresponding increase (a BIG increase if your trade was actually $5,000). Here's a quick way to look at it: take $5,000 and divide by 24 months (the Audi lease deal term in this case) -- you'll get $208.33 -- and that's with 0% interest! So you see, this is how the dealers "take" the uninformed consumer by getting them to put money down or a trade into the lease to reduce the monthly payment.

Hope this helps folks understand it a bit better.

robroth · December 2006

I'd love to know where you found this vehicle. All my local dealerships are telling me an A4 with nav and sport suspension are near impossible to come by.

marvelm · December 2006

Thanks for the reply. Forgot to mention my third mistake....I did not negotiate the selling price, so I am paying MSRP for this lease deal! I was so uninformed that I thought this A4 year end lease deal's only valid for the full MSRP. Like I said, I would not get ripped off if I did my homework, i.e. researching it in the internet, reading this forum, etc, so I blame no one but myself. I would have probably save at least $2500 if I ever read this forum first before making a deal, may this be a lesson for me...a hard one if I may add. (In the past, I always did a research before I buy something, I didn't on this one because on Friday I was only thinking of test driving the car, but i ended up getting the lease signed)

Well anyway, I am picking up the car this afternoon and will just enjoy it.

igoral · December 2006

Other things being equal, how much less, per month, would you expect to pay for a 24 months/12K miles per year lease versus 24 months/15K miles per year?

A dealer told me it is about $5 for every 1K miles. Does that make sense?

woody50 · December 2006

Your messages on this board were very helpful as I went to negotiate a deal on an A4 lease. My salesman (Reitzl Audi in Hingham, MA) told me that my monthly payment would be $479 (24 months) with amount due at start of $1347. He also suggested I purchase the Audi Care pkg for $500 to cover regular maintenance if I were leasing for 36 months at $471/month.
Did I miss something or is there really a deal for $359/month with NO money down?
Thanks for the other tips too!
Woody

guru_ck · December 2006

Can you give us more information on the car, the negotiated selling price, money factor, etc?

marvelm · December 2006

The $359/month (exluding tax) and NO money down is for A4 with premium package only and non-metallic color (black, red and white). If you add navigation, convinient package, etc, your payment will be more. No money down does not mean that you dont have to pay anything, you still have to pay something...example:

--------------------------------------------------
Down payment $0
Refundable security deposit $0
First Monthly Payment $359
Acquisition fee $575
---------------------------------------------------
Amount due at lease inception $934

and $934 is excluding Excludes taxes, title and dealer fees!

Dont make the same mistake like I did, make sure you ask the salesman to give you all the numbers such as the MSRP of the car, the selling price of the car, dealer fee, title, etc..... I mean everything, before you say "yes"! And remember that you can always negotiate the selling price for this deal!!! If needed, once you get the numbers, post them in this forum to get some feedback.

Hope that helps!

woody50 · December 2006

Thanks Guru. The money factor he originally used was the .0020. I reminded him that the actual rate currently is.0015... and he apologized for the mistake.
I negotiated from 35,385 to 34,100 dollars. It was for a deep blue color and I asked about the A4 Wagon...with heated seats and premium pkg. He just called me with the specifics of the deal, so now I know about the colors and that it is for a sedan only....my mistake.
I appreciate your quick response. We'll see what I work out tomorrow morning.
Woody

desgnconcpts · December 2006

Sort of right -- you can have the acquisition fee simply added to your capitalized cost. This would mean, under the A4 lease (which does not require any security deposit), that all you would have to pay to drive off is the 1st month's payment.

The math is really simple:
Capitalized Cost - Residual / # of months of lease
add this number to:
Capitalized Cost + Residual x Money Factor

The total of those 2 numbers is your monthly lease cost.

Capitalized Cost is your negotiated price for the car PLUS anything else you are adding, whether that's dealer accesories, acquisition fee, state sales tax, license fees, title fees, etc. Just add up everything you want to "finance" in the lease. This is why it's important to have negotiated a good price on the car 1st.

Residual is ALWAYS calculated on MSRP -- simple math and there's lots of places to find this info that will give you residual for the #miles per yr and #months lease.

For the A4 quattro (the "$379 special") --
73% resid, 24 mos, 15K miles a year
59% resid, 36mos, 15K miles a year
add 1% resid if you buy the maintenance package for 36mos
61% resid, 36mos, 12K miles a year
again, add 1% resid if you get maint package

I know for sure that the maintenance plan DOES NOT include wear items like brake pads, wiper blades, etc -- these are things that BMW does cover in their normal warranty that includes maintenace.

I also know Audi requires a brake fluid flush after 2 years, regardless of miles -- and I don't think this is included in the maintenance plan -- I believe it only covers the 10K, 15K, 25K and 35K normal services but you can check with the Audi dealer to be sure.

igoral · December 2006

Here are the numbers I got from the dealer for A4 2.0T Quattro with Tiptronic, Premium package, and Heated Seats:

MSRP $33,510
Selling Price: $32,000
Monthly Payment: $379
Acquisition fee: $575
Down Payment: $0
Security Deposit: $0
Title Fees: $125
Money Factor: .00115
Residual: 73%

Does this seem fare or could I have done better?

Thanks!

woody50 · December 2006

igoral, you are a much better negotiator than I am. wowsers that's a sweet deal. I'll see how close I can get to that with AWD and a wagon version.
Thank you for sharing!

marvelm · December 2006

that looks like a good deal to me, igoral! I wish I could do-over my deal with that numbers ..hehe... I am assuming the $379 monthly payment slready includes the tax?

desgnconcpts · December 2006

Igoral -- that is the standard lease offer. You'll be paying $379 (1st mo) plus $575 (acq fee) plus $125 (title fee) at inception (plus taxes -- I don't know where you live or how your state taxes leases). You could have them wrap the $125 and the $575 into the lease -- the cap cost would then be $32,700, which would bring your monthly lease to $409 (again, not including taxes).

Invoice on your car is $31,173 (according to Edmunds), so you could negotiate a much better deal. Potentially you could get them to include that $700 of fees for the same $379 per month; THEN you would be getting a good deal.

Since it's the end of the month and end of the year, I'm guessing you'll be able to get them to do this as most/many dealers get incentives from their mfg for # of units they move in a month/year -- a dealer that's hungry to make their number will obviously sell you a car at invoice just to make their other numbers.

igoral · December 2006

Thanks desgnconcpts,

The dealer I am dealing with told me that all the numbers I mentioned in my post are dictated to him by Audi. They are a part of this particular promotional deal and he has no discretion to change them. Is that true?

desgnconcpts · December 2006

Igoral,
Absolutely NOT true! The dealer SHOULD be using the residual and Money Factor set by Audi Financial Services (which they are in your case) -- but they definitely have discretion over the negotiated capitalized cost. If you look back about 10 days ago, I posted my lease info -- my car had the convenience package and the winter package (instead of just the heated seats) along with metallic paint. Stickered for $36,410 and the negotiated price was invoice (well, invoice plus the $300 Audi ad fee that gets "added" along with $195 port prep fee); I had a price of $34,306 which was invoice plus those 2 amounts. There is no mfg holdback on Audi's, so there's not the extra "float" other mfgs/dealers have.

But don't let them tell you they can do nothing re negotiating the price -- because that's a bunch of bull -- they can, they just are hoping that you don't know better. The more informed you are about how a lease works, the better you're able to understand and deal with the dealers. I know I got a great deal on my A4 and so far, I'm really thrilled with it. I have the 2 yr lease and I hope I don't have to get the brake fluid flushed (I think I'll try to turn it in a few days early to avoid this) -- we'll see what happens.

igoral · December 2006

Thank you desgnconcpts! I'll have a talk with the dealer tomorrow.

CarMan@Edmunds · December 2006

Hey desgnconcpts. I'm glad to hear that you got such a good deal on your new A4. It is an excellent car that is available at an excellent price right now. It is in the dealer's best interest to drum up as much business for its service department as possible. That is why the dealer that you are working with is insisting that you have all of this work done. They can claim that the manufacturer requires all sorts of maintenance to be performed on leased vehicles, but you should be just fine if you turn your car in only having just changed the oil every couple thousand miles.

Enjoy your new car

!

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CarMan@Edmunds · December 2006

No problem. OK, now that we have the prices let's work up a lease payment on this car. According to my calculations, if you were to lease a 2007 Audi A4 2.0T Sedan with quattro with an MSRP of $35,610 and a selling price of $33,884 through Audi Financial Services right now for 36 months with 15,000 miles per year, your zero down, pre-tax monthly payment will be around $421. Let me know if you have any other questions.

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CarMan@Edmunds · December 2006

Hi rastignac. Audi Financial Services' special lease money factors on the 2007 A4 are available for both 2 and 3 year leases. Audi has chosen to advertise a 24 month lease on this car right now, but one can lease this car for 36 months and still take advantage of its supported lease program. I think that the 24 month term is being advertised and selected by a number of consumers because its 24 month residual values are so strong right now. It's difficult to say what this car's January lease program will look like.

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brutus6 · December 2006

I am in Chicago. I have been offered a msrp a4 2.0t quattro of $35610 for 24 mo. 15k/yr with $4250 down(includes taxes, title, 1st month, etc.) and $402/mo.. Is the premier purchase worthwhile? Is this a good deal?

desgnconcpts · December 2006

Hi Car_Man,
It's great to hear from you -- I can never thank you enough for all of the help in the past few years. I have helped my Dad lease several vehicles and finally was able to lease one for myself. I would encourage everyone to heed Car_Man's advice on leasing -- understanding how a lease is calculated gives you an edge over the typical consumer and puts you on even footing with the dealer. Leasing typically allows them to make a lot more money on each car they sell. They're simply selling it to the leasing company for your benefit to be able to lease it from them.

Car_Man, re the maintenance -- it's not just the dealer but ALL of Audi's documentation as well that scares me. In their set of new car manuals, there is one just for maintenance and it's in there they preach about having ALL the recommended maintenance done. It's funny, they don't say all of it is required. Even when you read their 4 page Wear & Use Policy (if you have time, you can use this link:Audi Wear & Use Policy you'll see stuff in there that's contrary to most other premium brands (compare this to BMW's) and you'll see what I mean. BMW, for example says nothing bigger than a 2" scratch; MB says nothing bigger than a credit card (if it can be hidden by a credit card, it's OK; Audi, on the other hand, says anything larger than a quarter! is excess wear and will incur a charge and no more than 2 dings per panel!!!!

Although I got a great lease deal, I am very concerned with Audi's turn-in inspection and whether they will actually charge for things most other mfgs consider normal wear.

Car_Man, do you know for sure that all you need to do is have the oil changed for the 2 years? Or, will Audi at turn-in slap you with the $400 fee that was mentioned elsewhere in this forum for not during ALL their recommended maintenance?

Thanks and Happy New Year to you.

desgnconcpts · December 2006

Brutus6,
Without knowing the Net Capitalized Cost, I can't tell you for sure -- but backing into the #'s, it looks like a terrible deal. The Invoice of that car I calculate at $33,578
(33,083 + 300 dealer ad fee + 195 port prep fee). If I plug that in and calculate, I come up with a monthly payment of $384.47 -- you definitely have room to negotiate.

Plus, per the advice Car_Man continues to give to everyone, I would highly recommend NOT putting anything down. Have them include the taxes, title, license and any other fees in the lease. When you walk out, all you should have to do is write a check for the 1st mo's lease amount. Yes, you will pay a little interest/finance cost for paying the taxes over 2 years -- but you'll have that money in the bank and won't risk losing it if you total your car early in the lease. If that were to happen, you'd lose every penny of your down payment because your insurance pays Audi Financial Services (they own the car) not you!

brutus6 · December 2006

Ok. So if I roll the IL taxes etc. in at 9% of invoice + dealer ad fee and 195 port prep fee, what do you think the total monthly payment should be?

Also, what does the premier purchase do for me besides avoid Chicago sales tax?

Thank you for your prompt response and assistance.

desgnconcpts · December 2006

Brutus6,
I come up with a rough estimate of $547 per month, all you would pay at lease inception would be $547 (your 1st mo). This is based on getting the car at "invoice" plus the dealer ad fee and port prep fee. I don't know if those fees are real or not but they show up included on the dealer's invoice.

Because it is the end of the month & year, you should be able to get pretty close, if not at, this invoice number.

Here's a way to look at it -- payments of $547 mo x 24 months is $13,128. Your quote was $403 a month x 24 months; that is $9672, but you have to come up with $4250 at inception, total of $13,922. Not a huge difference, except if you total the car early on, you've lost your $4,250.

The Premier Purchase you talk about must be something like the GM Smart Buy -- it is NOT a lease -- but they're structuring it like that to avoid Chicago's 6% tax on lease payments.

I really can't advise you on what pitfalls there are with this program as I'm not familiar with it. You'd be wise to ask for a draft of your deal which you can read over at home instead of under duress at the dealer. To me, it sounds like they're trying to come up with a similar deal to the lease with an attractive payment -- but I am only guessing.

igoral · December 2006

FYI...For those, who are still in the process of negotiating their lease deals for A4 2.0T Quattro advertised for $379/month for 24 months...I called Audi and spoke with a representative from their promotions department. What he told me is that the current advertised promotion consists of two parts: First, Audi corporate reduced the price of the vehicle from MSRP of $33,510 to $32,000 to get to $379/month figure. Second, as part of the promotion, there is a required dealer participation, meaning that $32,000/$379 is only a starting point and one should be able to negotiate with a dealer a price lower than that!

Of course, if the dealer refuses to negotiate further, then all you get is that $379/month.

tmo1 · December 2006

Any thoughts on the following deal for:

2007 Audi A4
2.0T 4dr Sedan (2.0L 4cyl Turbo CVT)
Total with Options (Edmunds)
MSRP $31,885
Invoice $29,505
TMV $31,518
------------------
Dealer Specific:
MSRP $31,885
Invoice $30,500
Cap Reduction $1499
Aquisition $575
Tax & Tag $335
Pre-tax Monthly Payment = $299 + $20 for metallic paint - Quartz Gray(=$319)
Down Payment = 1499 (Cap Redux) + 575 (Acquisition) + 335 (Tax & Tags) + 319 (Pre-tax 1st monthly payment) = 2,728
Lease Terms = 24 mo / 15,000 per year
No disposition fee

desgnconcpts · December 2006

tmo1,
To the 29,505 (edmunds invoice), add 300 + 195 and you'll be at 30,000 -- your cap cost is 500 more -- so you still have room to negotiate.

Per earlier posts, don't put money into the lease -- $1,499 to reduce payment will be lost if you total the car. Instead, ask for nothing down and include your acq fee and tax & tags into your lease. You'll walk out, make only 1 payment.

When I ran the calculation for the MSRP and Invoice (net cap cost you gave) I assume you didn't include metallic paint. The $299 is correct with the numbers you have listed, without metallic paint. If your numbers for MSRP and Invoice include metallic paint cost, then your monthly is too high.

If you put nothing down, just pay 1st mo lease payment, based on #'s you gave your monthly would be about $363.

sealsmith217 · December 2006

Here is the 24 month/15,000 miles per year lease deal I got:

2007 Audi A4 2.0T Quattro tiptronic, with metallic paint, Premium package, heated front seats, Convenience package, Bluetooth, and Ipod adapter.

Total Monthly payment: $386.79 + 6% Michigan sales tax
Total Up-front costs(title,taxes,acq fee,first month payment, etc.): $1500.00
Turn-in fee (at lease end): $350

I think this deal is reasonable except the fact that I put in $1500 up front instead of only the first month's payment as emphasized by carman and others. Also, for people thinking about getting the ipod adapter, I don't think it's worth it since the A4 does not have MMI available unlike the A6,A8 which makes the ipod hard to navigate while driving. Also, it would have been nice if the turn-in fee was waived (is this possible?).

Any comments about this lease deal?

Hope this gives u an idea of lease deals out there.

sacurtis1 · December 2006

Can someone please tell me what the residual is for the A4 Quattro 2.0T on a 36 month lease? It appears the 24 month residual is 73%. I have seen 2 numbers on the 36 month 58% and 61%. If I would go with the 36 month and get this $550 service contract does it raise the residual? Also with the different residuals is 24 month more advantageous than 36 month or is it a wash? I live in Texas so the longer the lease the better since we get hammered with the sales tax. Also correct me if I'm wrong but the MF for all lease periods for this model is .00115?

desgnconcpts · December 2006

sacurtis1,
36 mo/15k mi  Resid Value 59% of MSRP  .00115 Money Factor
36 mo/12K mi - Resid Value 61% of MSRP - .00115 Money Factor

Add 1% to the residual for the service contract.

Re whether to take 24 mo or 36 mo -- I'd say it depends. You can pretty well count on having to replace tires (whether at 36K or 45K -- what was on my car -- Goodyear Eagle LS2's. If you look those up on tire rack, they're pretty expensive AND get poor tread life). In addition, you WILL have to flush the brake fluid at 2 yrs. You should find out if that is covered under the maintenance contract.

I'd run the numbers if I were you -- it's what I did -- to find out the 24 mo was only a little more expensive but I would not run into having to replace tires before turning it in. Another concern would be the wear & use policy of Audi (see my earlier post with link to their verbage on it). It appears much more restrictive than other co's -- and so, another year of wear and tear on the car could literally mean hundreds or thousands of dollars of repair to turn it in (or get charged for extra wear at turn in).

These were my considerations -- YMMV.
Good luck.

desgnconcpts · December 2006

sealsmith217,
If you post your MSRP and net cap cost, it will be pretty easy to figure out if this was a good deal. Your upfront cost would consist of 575 acq fee and 1st mo payment of 386.79, title cost -- you say taxes, but then you also say your payment is 386.79 + 6% MI tax (on payment?).

AFAIK, turn in is not negotiable -- they will waive it if you buy the car at lease end or if you lease another.

Re the iPod adapter -- I saw an article by the head of Audi's technol group talking about this. And there was a review of the connection. I believe you're right, you'd probably be just as well off without it because it won't work like you'd like.

sealsmith217 · December 2006

desgnconcpts,

MSRP: $36585 (this does not include the ipod adapter)
Gross Capitalized Cost: $34567.61
Capitalized Cost Reduction $261.60
Adjusted Capitalized Cost: $34306.01
Rent charge: $ 1684.00
Turn in fee(at lease end): $350.00

As stated on prior post my total upfront payment(money due at lease signing): $1500.00
Clarification on the total monthly payment: $410 (this includes the 6% MI sales taxes)

Is this a good deal? Also, do you think they charged me somehow for the ipod adapter without seeing it itemized in the lease agreement?

desgnconcpts · December 2006

sealsmith217,
You worked an excellent deal. By my calc, the invoice was $33,971, plus $300 ad fee + $195 port prep, for a total of $34,466. Your gross cap cost was $34,568 -- or about $100 over. Using all of your numbers, the dealer's numbers came out to the penny, so there was no fooling around with other items that would have increase your deal.

I do think they did not charge you at all for the iPod adapter. I have seen this listed other places (the device itself) for $170 PLUS INSTALL! So, you really came out ahead on this deal.

You only put $261.60 add'l money into the deal as a down payment. No big whup. You could, though, have wrapped up all of the extra costs into your lease and simply wrote 1 check for the 1st month when you left. Still, it's not like you've got thousands of dollars into the deal as others have reported big $ down or using their trade to reduce payment. If you should total your car, you won't be out all that much.

Enjoy your new A4 knowing you got a very good deal!
Happy New Year.

megsf · December 2006

Hi,

I am pursuing a lease on an A4 and just received a call back from Rector Audi in Burlingame, CA. Here are the terms:

Audi A4 CVT; Bluetooth; Metallic paint; Premium package; Convenience package; heated front seats

Terms:
MSRP: $34,485
Invoice: $31,871
Gross invoice (ad fee;port prep): $32,366
Cap cost: $32,800
MF: .0012
Residual: 72%

Total up front: $1391.77 (1st month;acquisition;DMV;doc fee)
Monthly payment: $401+tax (CA: 8.5) - $435.32

In doing the calculations, I realize she didn't use an MF of .00115. I should go back to her with this, yes? Also, this was her offer right off the bat. I was fairly surprised, so I assume there is room for negotiation. Any suggestions?

I appreciate any help!

tjruss · December 2006

Hi carman and all,
Just rec'd this offer today in NJ...
A4 Quattro automatic w/Premium pkg and heated seats (the config listed in the latest lease offer), black on tan.

MSRP $33,510
Residual 73
future value $24,462.30
Cap $31,600
Total Dep. $7137.70
term 24 month 15k miles
MF 0.00113
monthly payment = $385.95 (360.75 + tax of $23.45)
down payment = $1325 (1st payment 385.95 + $575 aqu fee + 187 DMV + 169 dealer admin + $7.50 tire fee (NJ thing!)

I thought this was pretty good. Deal is good until January 2nd. Love the car, but can I do better?
Thanks for any input!

bchan88us · December 2006

car_man,

this is what i received today:
a4 quattro auto premium pakcage + convenience package + bluetooth + audi care (5k 15k 25k service(oil change regular check up ...etc...)

$395 a month with $2300 due at signing (taxes, dmv, doc fees...etc) 12k per year with 30months

did i get a fair deal?

i wanted to get the special promotion without the extra package and bluetooth, but they said they sold out the all $379 cars already.

i am debating whether i should pay the sales tax at once or add it into the monthly payment.

anyone, comments?

igoral · December 2006

tjruss,

That's a great deal!

I live in the tri-state area as well. Can you tell me what dealership you got it from and its address?!

Also, I'd appreciate it, if you e-mail me the name of the dealer and his contact info to igoral@yahoo.com

Thank you!

desgnconcpts · December 2006

tjruss,
Very good deal. Only suggestion -- have them capitalize the 575 acq fee, 187 dmv fee, 169 dealer admin fee and 7.50 NJ tire fee. Why put any more money out at the start than 1st mo payment? Yes, your monthly will be higher but with the low MF, it won't cost much over the 24 months.

desgnconcpts · December 2006

bchan88us,

You'll need to post your MSRP and your capitalized cost in order for anyone to tell you whether you have a good deal. I would never write a check for $2,300 at signing -- have them capitalize it into the monthly lease payment. If you total your car, you will lose all of that money. And just an FYI, the 5K service is included as standard part of Audi warranty, so you're paying for 15K and 25K service -- don't know if it's worth the cost.

firstlease · December 2006

I am leasing my first car, Audi A4, since the lease deal is fantastic ($359 mo plus tax, fees, etc). I have a trade-in that wholesales for $21000. I was offered $22,000 after negotiations with one of the two Audi dealers in town. The other one will not go over $21,000 for the same car and tells me the other dealer is playing games with a higher money factor and lower sales price to give me $1000 more.

Here are the details. Is this a good deal? I am getting $1000 more for my car and I can take the lease with or without the trade, it just confuses me. From the "lease worksheet"

MSRP 30960
Gross Cap cost 29025 (includes the $575 fee I believe)
Cap reduction 126.51
Net cap cost 28898.49
Adj residual 22291
Tot term dep 6607.29
monthly dep 275.30
mo. lse chrg 84.46
Base payment 359.76 + tax 29.14= $388.90
The money factor is .00165 (higher than most others) but they are making it up with a price that is below invoice according to the dealer that says he cannot match them.

What is going on here?

bchan88us · December 2006

car_man,

this is what i received today:
a4 quattro auto premium pakcage + convenience package + bluetooth + audi care (5k 15k 25k service(oil change regular check up ...etc...)

$395 a month with $2300 due at signing (taxes, dmv, doc fees...etc) 12k per year with 30months

did i get a fair deal?

i wanted to get the special promotion without the extra package and bluetooth, but they said they sold out the all $379 cars already.

i am debating whether i should pay the sales tax at once or add it into the monthly payment.

anyone, comments?

the msrp is 36865 and 34459

i dont have the exact but it is very close.

bchan88us · December 2006

i am required to get comprehensive insurance for my new a4, even if i total my car, i would get a new car from my insurance policy, am i right?

CarMan@Edmunds · December 2006

Congratulations on your new car, catatonic. I believe that Audi Financial Services provides a slight boost in the residual values of vehicles that have a pre-paid service plan on them. The higher residual value often makes getting the service plan pay for itself. Thanks for taking the time to share the details of your deal with everyone. Enjoy!

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CarMan@Edmunds · December 2006

Hi TMK. Audi's special lease program is only available on the 2007 A4. It is no longer providing lease support on 2006 models. A couple of months ago it replaced its lease support on '06s with dealer cash. If you want to lease an A4 you would be much better off going with a 2007 model right now.

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CarMan@Edmunds · December 2006

Greetings bew1. You never mentioned the selling price or MSRP of the car that you are interested in leasing. These are important numbers for you as a consumer to know for two reasons. First, the selling prices of leased vehicles can be negotiated, just as if you were paying cash for them. Without knowing this car's selling price in relation to its MSRP you don't know how much of a discount you are getting on it. The second reason is that one needs the selling price and MSRP, including the destination charge, of a vehicle to calculate its lease payment. I would be more than happy to give you my opinion of this deal if you let me know what these numbers are.

Car_man
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CarMan@Edmunds · December 2006

Hi raidertt200. What you have heard is correct. Consumer who make large down payments on leases risk losing them if their vehicles are totaled in an accident or stolen and never recovered. Consumers can lease any vehicle that they want without making any sort of capitalized cost reduction and it is in their best interest to do so. There's nothing wrong with trading in your current vehicle when you get a new one, just have the dealer that you are working with cut you a check for it rather than using the proceeds as a capitalized cost reduction for your lease.

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CarMan@Edmunds · December 2006

That is a very good question, igoral. The answer is that it depends upon the price of the vehicle you are interested in. The higher its MSRP is, the more impact a switch from 12,000 miles per year to 15,000 miles per year will have on its monthly payment. If you provide me with the full MSRP and approximate selling price of the car that you are interested in I can tell you exactly what the difference in payment would be between a 12K and a 15K lease for it.

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CarMan@Edmunds · December 2006

Thanks desgnconcpts. I am glad that you have found our discussions helpful. While I have never personally leased an Audi before, I have several good friends who have and I can tell you without a doubt that they did not perform any maintenance on them other than changing the oil every several thousand miles and they did not have to pay any sort of fine when they turned their cars in. I cannot guarantee that Audi will not slap you with a fine for not performing every scheduled maintenance item, but I would be absolutely shocked if they did. It is in Audi Financial Services' best interest to keep you as a happy and for its parent company's sake a loyal customer. If they make you mad by nickel and diming you to death at the end of your lease they run the risk of losing your future business.

Happy New Year tot you as well.

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igoral · December 2006

Car_man,

MSRP is $33,510
Selling Price - $32,000

Thank you!

CarMan@Edmunds · December 2006

Hi there sacurtis1. Through January 2nd, Audi Financial Services' buy rate lease money factor and residual value for a 36 month lease of a 2007 A4 2.0T Sedan with quattro with 15,000 miles per year are .00115 and 59%, respectively. The numbers for an otherwise identical 24 month lease are .00115 and 73%. I believe that AFS does provide a slight residual value boost for certain lease terms for lessees who get a service contract. If you decide to get one, try to negotiate its price. You should be able to get some sort of discount on it. I haven't worked out the exact payments for the car that you are interested in, but given the very attractive residual value I would not be surprised if the monthly payment for a 24 month lease of it is about the same or even less than a 36 month lease of it right now.

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