noah123

Have anyone of u made up their mind yet,lease/buy?

Price 90k. Negotiated value =83k
MF .00153 down 1000$
RV 10k/56% RV 12K/55% (36 months)
My dealer quoted me 1200$ per month

What do u guys think??

Metallic-Force

Jesus... 1200 a month

GiantEli

I'll be paying just north of $1k over 5 years to buy the thing. Terms will be different, of course.

Jatmobil

The numbers add up, assuming 8.75 - 9% sales tax
Depending on your driving habits (miles driven/year), willingness to put up with issues during end of lease turn in (you may have a great relationship with you dealer, where they might be willing to over look minor scratches etc), you may wan to go the lease route!

Jatmobil

B.T.W - i wont recommend the 10k/yr route, which is only about $33 worth of saving per month (Lease payment of ~$1167).. for the $33 more a month, you get 2k miles/year which would otherwise cost you roughly $41/month based on $.25/mile for excess mileage at the end of the lease!

HyperS4

Audi allows you to buy miles in the middle of the lease for only $.01 more than it would have been up front. If you know you wont use all 6k miles of the extra in the 12k lease theres no reason to pay for it up front. Just an FYI.

Austin A6 3.2

At $1,200/month you'd pay $44,200 (incl. down payment) in three years.

If the car is worth 55% at the end of the lease, it's worth $49,500 (based on MSRP) at that point.

Total value at that point is $93,700 (residual plus lease payment)- or $10,000 above what they are quoting you ($83k). That means you pay about $278/month in "taxes and interest" - unless my math is flawed ...

The lease basically finances the value of the car at lease time minus the projected value at the end of the lease:

$83,000 (value now, after discount)
$49,500 (55% of MSRP at lease end)
-----------
$33,500 is the value you need to finance, plus add whatever the state tax in your state is
$44,200 is what you are paying over 36 months (incl. down payment)


In general, Audi leases seem to be TERRIBLE. I was quoted $950/month for a 15k miles/year A6 Prestige lease with a few options (around $61k after $4k discount), a similarly equipped 535i was quoted over the phone (no negotiation) for just below $800/month and a Lexus GS350 for around $750/month - same down payment ($5000) on all and I have an 820+ credit rating. I have also purchased several cars from this Audi dealership before and sold another 5+ cars for them to friends (A3, several TT's and S5 convertibles).

The dealer claims that Audi doesn't subsidize the lease programs and that their residuals are lower compared to BMW and others.

Over a 42 month lease, $200/month is over $8,000 more than a comparable Lexus GS, and I bet I could get the BMW guys to get around the same price.

I have been back to the Audi dealer 4 times since April, no change basically, the lease conditions are unchanged.

GiantEli

This is true. BMW subsidizes the residual value of the vehicles (see their ~60% residuals) for two reasons: (1) to keep lease payments affordable, which actually feeds into (2) their minimum efficient scale is a lot higher than audi's. In short, they have to keep pumping out cars at a pretty good pace to keep the unit cost down. No one wants lots of cars sitting on lots, so they make attractive lease offers. They can then take the cars back and sell later at a loss to that value (no one will buy it used for the actual residual value) and see a tax benefit.

Example:
$80k car
60% residual = $48k
Value at end of lease = $40k (difference = $8k)
Sell for market value, realize $8k loss for finance arm, offsetting income from lease payments.
Manufacturing looks peachy, financially speaking.

The downside to this is that if for some reason you want out of your BMW lease, you're screwed.

Audi, on the other hand, uses more realistic residuals...at the same finance rates, Audi leases look a lot worse. BUT, you can typically always get out of an audi lease, as the market value of the car is aligned with the remaining payments + residual. In some cases (like mine) you can end up with "equity" in a lease if the residual turns out to be too low.

Most BMWs are leased, whereas most audis are purchased (citation needed).

mnsnwbrdr

If you are doing a lease on the upper end (>$50k MSRP) - don't forget to ask about multiple security deposits (MSDs). If you fully exercise the option, you'll save over $100/mo on your lease payment ($3600 total saved) for your $7500 down - and you'll get it all back. Show me a savings account with that return and I'll eat my shoe!

Multiple Security Deposit Option

AFS offers reduced Rent Charge Factors when more than one security deposit is collected on the same contract.

Reduce the rent charge factor .00008 for each additional security deposit. Collect up to nine additional deposits over the initial required security deposit for a maximum of 10 total security deposits.

The total allowable security deposit(s) in New York is $749 Multiple Security Deposit Discounts are not available with a Pre-Pay Lease. The minimum Rent Charge Factor may not be less than .00005 and cannot exceed five decimal places.

dht34

Audi residuals are fairly low, making a lease buy out a viable option. Especially if the car has been hassle free or miles have been exceeded.

Bought out my 2010 A4 lease for a fairly low residual amount considering it was 15k miles over my lease terms. The KBB value of the A4 is $2.5k over the residual amount. If I didn't have so much trouble with the car, would probably be keeping it now, but I plan to sell it soon.