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Audi S4 Lease Questions

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  • jauri7788jauri7788 Posts: 5
    Thanks for your quick reply!

    I thought it was too high as well. How much should it be even with the negative equity? I ran the Edmunds lease calculator even with the numbers the dealer gave me and it was like $100 lower than his number. When I confronted him, he kept telling me that there are upfront costs of $2065, acquisition fees, title and tag fees and etc. Is this all a dealership [non-permissible content removed]?
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  • isles1isles1 Posts: 116
    First negotiate the sales price as mentioned above based on invoice.

    Then move to why the money factor is higher than the "buy rate" money factor.

    $695 is the acquisition fee on all Audi leases. You'll have to ask the dealer to break down the rest of the $2065 of fees. "Documents fees" and "dealer prep fees" are BS and you should not pay them. Title fees and DMV fees are legit, of course.

    You'll have to add the negative equity into a lease calculator as an additional cost. This calculator usually comes within $10 of the dealer figures: http://www.leaseguide.com/calc.htm
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  • jauri7788jauri7788 Posts: 5
    Thanks so much. When you calculate the lease residual value, do you use percentage of the MSRP or the selling price of the car? I thought it was the selling price of the car, but the dealer said it is calculated on the MSRP of the price. Again, I appreciate your help.
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  • jauri7788jauri7788 Posts: 5
    Also, I qualify for the Audi loyalty. Where should that be applied?
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  • isles1isles1 Posts: 116
    Residual is based off of MSRP...that is to the lessee's (your) advantage.

    Negotiate the sales price with your dealer WITHOUT factoring in the Audi Loyalty incentive. The incentive will be treated as a $1K cap cost reduction, which you will pay sales tax on. So you are aiming for $500 over invoice (or less if you can haggle well) BEFORE the loyalty incentive. This incentive is not a cost to the dealer; it is an Audi of America "subsidy", so do not let the dealer skew the numbers on you.

    The lease calculator I linked you to above handles all the correct calculations for you, including sales tax in the payment.
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  • jauri7788jauri7788 Posts: 5
    Thanks so much. Looks like the dealer was trying to rip me off... So sad I just found this site today. I've been getting ripped off for years...
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  • CarMan@Edmunds[email protected] Posts: 38,515
    Hi quattrorings. Wow, there's been a lot of posts about leasing the S4 lately.

    Audi's current lease program is scheduled to run through April 2nd. It's difficult to say what will happen to its program after that. I don't know what the cutoff for Audi Financial Services' top credit tier is off of the top of my head, but I suspect that it's in the 700's...say 720 or so.

    Car_man
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    Prices Paid: Buying & Leasing Experiences Forum
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  • CarMan@Edmunds[email protected] Posts: 38,515
    Hi jauri7788. Vehicles' dollar residual values are calculated by multiplying the residual value percentage times the full MSRP, including the destination charge and the MSRPs of any options that can be residualized.

    Car_man
    Host
    Prices Paid: Buying & Leasing Experiences Forum
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  • CarMan@Edmunds[email protected] Posts: 38,515
    Hi jauri7788. It's not healthy to look back, just be happy that you'll be getting great deals on your leases from now on :).

    Car_man
    Host
    Prices Paid: Buying & Leasing Experiences Forum
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  • quattroringsquattrorings Posts: 5
    Considering how low the rates on the S4 are, I should probably lock it in before April 2
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  • tcovtcov Posts: 3
    Just wanted to verify if MF .00068 applies to both premium and prestige?
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  • isles1isles1 Posts: 116
    Just going off the past few years, I would not expect the MF to get any better after in April when the current program expires. The residuals will probably move up a few points with the new model year, along with higher MFs.

    If you wait until April, you may find that dealers have no more allocations for MY2013 order, and will be in the position to order a MY2014 or take a MY2013 from stock. The MF also tends to jump when the new model year comes out, and your bargaining power drops with an increase in demand for the new model year, together with an increase in buyers as most locales move higher temps and nicer weather (car buying season).

    So I'd lock in the current program by placing an order on of before April 2. If for some chance the programs are better when you take delivery, you may avail yourself of those programs instead.

    I locked in Nov. programs for P+ 36 months (MF .00105, 56%) but will get the benefit of the current program (MF .00068, 55%). The current program saves me about $20 a month, or about $700 over the lease term. Not bad.
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  • CarMan@Edmunds[email protected] Posts: 38,515
    Yes, tcov, that is the money factor for both the Premium & Prestige but the residual values for the Prestige are 2% lower.

    Car_man
    Host
    Prices Paid: Buying & Leasing Experiences Forum
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  • daveg35daveg35 Posts: 7
    Sorry if this has already been posted but I'm picking up my custom ordered S4 this week and want to make sure I have the most current lease details. on a Premium Plus, 36 mo lease, 15k/yr. with Audi Care. What should the money factor and residual values be? When I order the vehicle in Nov the RES was 54% - not sure about the MF. Want to make sure I am not getting ripped off before I go in and sign the lease so if you could give me the latest #s ASAP I sure would appreciate it.
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  • quattroringsquattrorings Posts: 5
    I've already ordered my Audi with delivery most likely late March/Early April. Could I lock in the lease rate before delivery? Would this be a wise idea?
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  • daveg35daveg35 Posts: 7
    When I ordered my S4 in Nov I was locked into the lease rate, however if the rate went down at the time of delivery I would get the lower rate. That is why I am looking for the current rate - I am taking delivery next week.
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  • daveg35daveg35 Posts: 7
    Car_Man,

    I'm picking up my custom ordered S4 this week and want to make sure I have the most current lease details. on a Premium Plus, 36 mo lease, 15k/yr. with Audi Care. What should the money factor and residual values be? When I order the vehicle in Nov the RES was 54% - not sure about the MF. Want to make sure I am not getting ripped off before I go in and sign the lease so if you could give me the latest #s ASAP I sure would appreciate it.
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  • isles1isles1 Posts: 116
    I know Car_man is busy, so I'll jump in here and I'm sure he will confirm when he gets a chance:

    Current "buy rate" money factor for a 36-month lease of a Premium Plus S4 is .00068. The residual value is 53% for 15K miles. AudiCare adds 1% to the residual.
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  • daveg35daveg35 Posts: 7
    edited February 2013
    My dealer just informed me that they alway mark up their money facors by .0003 and provide a higher discount to make up for the difference. Does that make sense?

    "We mark up all our interest rates and money factors as do all financial institutions such as banks, mortgage companies and car dealerships. The residual is 54% but the money factor is .00098. We mark it up .0003 to all
    Deals. We did discount this deal $2470 not $1670 as it was because of the money factor mark up."
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  • azax456azax456 Posts: 19
    Hello all! I have been long lurking and finally decided on an S4 over a BMW 535i today. Spent some time at the dealer and wanted to share this deal with everyone. What do you guy think?

    2013 S4 Black/Black, Key, B&O, Nappa Leather, 19" wheels, carbon fiber inserts and Supercharged badges.

    MSRP: $58,375
    Selling price: $54,500
    MF: .00038 (6 MSD's buying down from .00068 buy rate)
    299 tint/880 Audi Care/695 aquisition/489 Doc fee - all rolled in
    ~800 registration and first month due at signing

    Payment: $662 plus tax (8.8%) for a total of $720/month.

    Thoughts? Thanks guys!
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  • isles1isles1 Posts: 116
    Find a dealer that does not mark up the "buy rate" money factor.

    What "deal" are they discounting? What is the negotiated sales price? What is the MSRP? What is the invoice?
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  • isles1isles1 Posts: 116
    All looks good except the $489 doc fee. Cross it out...the dealer is padding the deal with it, negating a good portion of your MF buy down. Part of the doc fee might be the title fee, which is legit...you have to ask the dealer break it out for you.

    You could probably get AudiCare for $30-$50 less, but that is really splitting hairs.

    Most people advise against letting the dealer do tint. Price for tint seems fair, but that all depends on the brand of tint and what windows you are tinting.
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  • azax456azax456 Posts: 19
    I know the doc fee is padding but we are pretty much at invoice on the deal...they might be making a few $ on tint, doc fee and Audi Care but I feel it is pretty solid..I haven't seen many near invoice deals on an S4 on here
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  • isles1isles1 Posts: 116
    Yes, it looks like you are within a few hundred of invoice re: selling price. I cannot duplicate your MSRP and listed option here on Edmunds to get exact invoice.

    As long as you are okay adding $489 to the amount over invoice, then the deal is certainly fair. I really do not see how it can hurt to object to the doc fees, especially if you are in an area with several dealers. The car is on the lot, MY2014 order sheets are only a few months away. I am sure they are looking to move 2013s.

    Not sure if you are leasing or buying, but watch the interest rates as that is another way a dealer can pad the deal.
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  • daveg35daveg35 Posts: 7
    edited February 2013
    After discovering that my delaer was trying to "mark up" the MF I told them I was going to shop around before signing the paperwork - even though I had given them a $500 deposit on a custom ordered S4 that just arrived. As soon as they heard that they were willing to forgo the mark up, saving me $900 over the life of the lease. The lesson here is to be sure you know what the Audi MF is and what the dealer is charging you. Marking up the MF is an easy way for them to hide what they are really chargng you.

    My final deal:

    MSRP: $53,020
    Final Price after discount ($1,670) and rebate/incentives ($2,500): $48,850
    ACQ Fee: $695
    Title/Reg Fee: $175
    Doc Fee: $399
    Free Audi Care
    Free All Season Weather Floor Mats
    MF: .00068
    RES: 54%
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  • isles1isles1 Posts: 116
    They still got you on the doc fee, but great job standing your ground and getting some extras thrown in! Enjoy the car!
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  • tcovtcov Posts: 3
    I am thinking of getting an s4 and have gotten some lease numbers from the dealer. I have a few questions.

    How accurate is edmunds tv as a price to negotiate for? Right now it appears that tv is ~1000 higher than invoice.

    Also, dealers is saying that he is adding .00015 to MF of .00068 since I am a new Audi customer.
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  • azax456azax456 Posts: 19
    I am a new Audi customer, just signed a deal on a 2013 S4 yesterday. Paid invoice and MF was at .00068. DO NOT let them mark up the MF, tell them that is a deal breaker. The only reason it should be raised is if you have horrible credit. If there is more than 1 dealership in your area you should not be paying a more than $500 over invoice.
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  • kyfdxkyfdx Posts: 77,507
    .00015 might be to waive the security deposit... Return customers don't have to make a security deposit..

    If that's the case, I'd make a security deposit and save the $10/mo...

    MODERATOR

    Prices Paid, Lease Questions, SUVs

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  • isles1isles1 Posts: 116
    Or you can ask that, together with your credit application, the dealer request that the security deposit requirement be waived. Then there should be no MF markup or a security deposit requirement. At least that was my experience as a first time Audi customer.
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This discussion has been closed.