Justin

I have been researching lease payments online on various different cars and decided that I would really like an A4, but don't want to pay more than 425-435 a month. After going to the dealer and being given an estimate of 475-500 per month I felt that was just too high. I only have one Audi dealer in this area. I'm wondering if I was far off or the dealer was jerking me around. What could I expect to pay per month on a lease of a 2.8 Quattro A4. Considering the following factors:

*34,500 (agreed upon price between myself and the dealer)
*5000 down for cap cost reduction, security deposit, and first months payment purposes
*15,000 miles per year
*7.25% local tax rate (to be added on each months payment)
*36/39 month lease


Thank you to those who respond! I really appreciate it.

Carrie

Check out carsdirect.com you can plug your information in and it will give you a lease payment.

Steve S.

It makes a difference.

Steve S.

John

Interest? How do you come up with 0.00320?

DavidG

The money factor is the equivalent of interest in a lease. Basically, it determines the extra amount you pay above and beyond the depreciation of the vehicle.

Excluding tax, the lease payment is:

(capitalized cost - residual) / # of payments

PLUS

(capitalized cost + residual) * money factor

The first term is the depreciation spread out over the term of the lease.

The second term is the "interest" term. One way to think about it is that you are taking out a loan equal to the cap cost of the car. By the end of the lease, the loan still has a balance equal to the residual (which you pay off by returning the car). On average, your balance is the average of these two values:

(cap cost + residual) / 2.

Take this average balance, multiply by a monthly interest rate, and you get:

(annual interest rate / 12) * (cap cost + residual) / 2

or, equivalently:

(cap cost + residual) * (annual interest rate / 24)

Thus the money factor is the equivalent of an annual interest rate divided by 24. For 7% interest (0.07), you get a money factor of 0.002917, for example.

Aman

OK...I won't go into the math like everyone else but I pay 490 for the same car and sticker as you. The only difference is that I had no cap cost reduction but paid my tax up-front + 1st and last payment. ( no sec. deposit).