Is this a good deal?
10-26-2006, 09:45 AM
#1
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Is this a good deal?
07 A6 3.2, MSRP of $56,010
42 Month Lease
$6,000 down (I know, way too much down...wife is focused on the monthly)
15,000 miles per year
Maintenance included in the cost
Bottom line is $699 per month.
42 Month Lease
$6,000 down (I know, way too much down...wife is focused on the monthly)
15,000 miles per year
Maintenance included in the cost
Bottom line is $699 per month.
10-26-2006, 10:54 AM
#2
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Not IMO.
so you'll pay around ~35,400 to rent this car for 3.5 years, and have nothing at the end.
They are really loading depreciation into that thing. Waayyy too much down. BMW and MB have better leases on their mid sized cars. Add some more monthly and you are getting up to 7 series lease prices.
Let's say you bought it, tax included for 60 months at 56K at 6% interest. 1,083/mo. Even at 50K, it's 967. At the end of the 5 years, it might be worth 10K. Who knows, maybe Audi has some low int. rates on retail loans.
I'd tell your dealer to work mucho better numbers.<ul><li><a href="http://www.bmwusa.com/vehicles/leaseoffers">http://www.bmwusa.com/vehicles/leaseoffers</a</li></ul>
They are really loading depreciation into that thing. Waayyy too much down. BMW and MB have better leases on their mid sized cars. Add some more monthly and you are getting up to 7 series lease prices.
Let's say you bought it, tax included for 60 months at 56K at 6% interest. 1,083/mo. Even at 50K, it's 967. At the end of the 5 years, it might be worth 10K. Who knows, maybe Audi has some low int. rates on retail loans.
I'd tell your dealer to work mucho better numbers.<ul><li><a href="http://www.bmwusa.com/vehicles/leaseoffers">http://www.bmwusa.com/vehicles/leaseoffers</a</li></ul>
10-26-2006, 11:30 AM
#3
I think he's ruled out the other Germans. It's about the relative lease numbers compared
to what other A6 driver's are paying;-)
I don't see any specials on a 42 month lease. 36 months is where you want to be for the best residual (53% for 3.2 Q) and money factor (.00140 - 3.36%). With $6K down, no discounting, and not including tax, I'm at about $675.
I don't see any specials on a 42 month lease. 36 months is where you want to be for the best residual (53% for 3.2 Q) and money factor (.00140 - 3.36%). With $6K down, no discounting, and not including tax, I'm at about $675.
10-26-2006, 12:32 PM
#4
Consider. . .(TMI)
. . .instead of that much down:
Multiple sec deps -- a qnd google turned up this on the subject. . . .
From Volvo (substitute Audi for Volvo, basically)
Fer instance:
MULTIPLE SECURITY DEPOSIT PROGRAM
Cash Upfront For Lease-Long Savings
Money talks, and nowhere does it speak more powerfully than with the advantages of our increasingly popular Multiple Security Deposit Program. By making multiple-security deposit payments at lease inception, you can reduce your monthly payment.
Standard practice requires a security deposit of slightly more than the monthly payment amount. The Multiple Security Deposit Program allows you to make up to nine additional security deposits. Each additional security deposit will lower your monthly payment. And, a lower monthly payment means a lower payment over the life of your lease!
At lease-end, your multiple security deposits can be used in a variety of ways:
Toward the purchase option price of your current Volvo
As a multiple security deposit on your next lease
As a capitalized cost reduction or down payment on a new Volvo lease or retail installment contract
Toward a Advance Payment Lease
Please contact your authorized Volvo retailer for details. Minimum lease term may apply. See the Volvo Closed-End Lease Agreement for details.
=====
Multiple security deposits explained
Although the rent charge is often set by a third-party assignee and may not be negotiable, sometimes there is a way to lower your rent charge. It is sometimes possible to pay a larger security deposit, usually calculated as a multiple of the standard security deposit. For example, if the lessor requires a $350 deposit and you offer to pay $700, you may be able to lower your rent charge. Check to see how much difference in the cost of the lease the additional deposit would make. At the end of the lease, your security deposit should be refunded to you, although the lessor may offset any amounts you still owe under the lease agreement (for example, for excess mileage or excessive wear).
=====
From a glossary of leasing:
Security Deposit: The security deposit is usually equal to one monthly payment. Multiple security deposits can sometimes be made to reduce the interest rate and, consequently, the monthly payment.
=====
From blogs:
Infiniti Financial Services does have a multiple security deposit program. For each additional deposit lessees make, up to a maximum of nine, they will receive a .00010 discount in their vehicle's money factor. Assuming that your car does not have any excess mileage or excess wear and tear IFS will mail you your security deposit back when you return your vehicle at lease-end. I assume that you would get your deposits back if you terminated your lease early as well.
=====
Hi. The money factor and residual value that you were quoted for this car are right on the money. $4,400 is way too much money to put down though. You would be much better off making multiple security deposits to lower your monthly payment than throwing your money away by using it as a cap cost reduction. I would be happy to tell you exactly how much lower your monthly payment would be with the additional security deposits if you provide me with this car's MSRP and selling price.
=====
From Ford Motor:
ADDitional Security Deposits: A Red Carpet Lease program that allows customers to pay multiple security deposits at lease inception in exchange for a reduced monthly lease payment. Additional security deposits may be used to pay any excess wear and use charge, excess mileage or other excess charge at lease end. Any amount not applied to lease end charges will be refunded at lease end. ADDitional Security Deposits are not refundable during the term of the lease. Not available in all states. See your dealer for details.
=====
Mitsibishi does this too. . .
Optional Multiple Security Deposits
If you're looking for a way to lower your monthly payment even more, consider this option. When you sign your lease, you usually have to pay a refundable security deposit, which is equal to the amount of one monthly payment rounded to the next $50. With this option, you can pay up to nine additional refundable security deposits at the start of your lease, which will result in a lower monthly payment.For many people, leasing has become an attractive alternative to buying a vehicle. And why not? Leasing gives you lower monthly payments, for one thing. Plus, leasing allows you to drive a new vehicle more often, and saves you the hassle of selling the vehicle when you're through with it. If you're interested in driving a Mitsubishi, but don't want the long-term commitment or responsibility of ownership, the Diamond Lease Plan may be the perfect way for you to get into the car or sport utility vehicle you've always dreamed about.
====
Locally, the Audi dealer says up to nine sec deps will whittle away the mo pay and you get your full "deposit" back -- not so with a down payment.
====
Just a thought.
Multiple sec deps -- a qnd google turned up this on the subject. . . .
From Volvo (substitute Audi for Volvo, basically)
Fer instance:
MULTIPLE SECURITY DEPOSIT PROGRAM
Cash Upfront For Lease-Long Savings
Money talks, and nowhere does it speak more powerfully than with the advantages of our increasingly popular Multiple Security Deposit Program. By making multiple-security deposit payments at lease inception, you can reduce your monthly payment.
Standard practice requires a security deposit of slightly more than the monthly payment amount. The Multiple Security Deposit Program allows you to make up to nine additional security deposits. Each additional security deposit will lower your monthly payment. And, a lower monthly payment means a lower payment over the life of your lease!
At lease-end, your multiple security deposits can be used in a variety of ways:
Toward the purchase option price of your current Volvo
As a multiple security deposit on your next lease
As a capitalized cost reduction or down payment on a new Volvo lease or retail installment contract
Toward a Advance Payment Lease
Please contact your authorized Volvo retailer for details. Minimum lease term may apply. See the Volvo Closed-End Lease Agreement for details.
=====
Multiple security deposits explained
Although the rent charge is often set by a third-party assignee and may not be negotiable, sometimes there is a way to lower your rent charge. It is sometimes possible to pay a larger security deposit, usually calculated as a multiple of the standard security deposit. For example, if the lessor requires a $350 deposit and you offer to pay $700, you may be able to lower your rent charge. Check to see how much difference in the cost of the lease the additional deposit would make. At the end of the lease, your security deposit should be refunded to you, although the lessor may offset any amounts you still owe under the lease agreement (for example, for excess mileage or excessive wear).
=====
From a glossary of leasing:
Security Deposit: The security deposit is usually equal to one monthly payment. Multiple security deposits can sometimes be made to reduce the interest rate and, consequently, the monthly payment.
=====
From blogs:
Infiniti Financial Services does have a multiple security deposit program. For each additional deposit lessees make, up to a maximum of nine, they will receive a .00010 discount in their vehicle's money factor. Assuming that your car does not have any excess mileage or excess wear and tear IFS will mail you your security deposit back when you return your vehicle at lease-end. I assume that you would get your deposits back if you terminated your lease early as well.
=====
Hi. The money factor and residual value that you were quoted for this car are right on the money. $4,400 is way too much money to put down though. You would be much better off making multiple security deposits to lower your monthly payment than throwing your money away by using it as a cap cost reduction. I would be happy to tell you exactly how much lower your monthly payment would be with the additional security deposits if you provide me with this car's MSRP and selling price.
=====
From Ford Motor:
ADDitional Security Deposits: A Red Carpet Lease program that allows customers to pay multiple security deposits at lease inception in exchange for a reduced monthly lease payment. Additional security deposits may be used to pay any excess wear and use charge, excess mileage or other excess charge at lease end. Any amount not applied to lease end charges will be refunded at lease end. ADDitional Security Deposits are not refundable during the term of the lease. Not available in all states. See your dealer for details.
=====
Mitsibishi does this too. . .
Optional Multiple Security Deposits
If you're looking for a way to lower your monthly payment even more, consider this option. When you sign your lease, you usually have to pay a refundable security deposit, which is equal to the amount of one monthly payment rounded to the next $50. With this option, you can pay up to nine additional refundable security deposits at the start of your lease, which will result in a lower monthly payment.For many people, leasing has become an attractive alternative to buying a vehicle. And why not? Leasing gives you lower monthly payments, for one thing. Plus, leasing allows you to drive a new vehicle more often, and saves you the hassle of selling the vehicle when you're through with it. If you're interested in driving a Mitsubishi, but don't want the long-term commitment or responsibility of ownership, the Diamond Lease Plan may be the perfect way for you to get into the car or sport utility vehicle you've always dreamed about.
====
Locally, the Audi dealer says up to nine sec deps will whittle away the mo pay and you get your full "deposit" back -- not so with a down payment.
====
Just a thought.
10-26-2006, 12:48 PM
#5
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I'd try to get zee dealer down...
6K is alot of cheddar. they want quite a chunk even on A4s.
I think I'd try and squeaze down to a smaller car. The dealer looks to be trying to make some money up front with longer lease terms with the big chunk down.
For an Audi town, I've only seen about 5 C6 body A6s. There are a ton of C5s...they were significantly less than the new C6s. I'm seeing more 3 series and A4s on the roads. My guess people aren't reupping for the 6s in my area.
The leases a few years ago were alot cheaper then.<ul><li><a href="http://www.audiusa.com/audi/us/en2/special_offers/a420tquattro.html">http://www.audiusa.com/audi/us/en2/special_offers/a420tquattro.html</a</li></ul>
I think I'd try and squeaze down to a smaller car. The dealer looks to be trying to make some money up front with longer lease terms with the big chunk down.
For an Audi town, I've only seen about 5 C6 body A6s. There are a ton of C5s...they were significantly less than the new C6s. I'm seeing more 3 series and A4s on the roads. My guess people aren't reupping for the 6s in my area.
The leases a few years ago were alot cheaper then.<ul><li><a href="http://www.audiusa.com/audi/us/en2/special_offers/a420tquattro.html">http://www.audiusa.com/audi/us/en2/special_offers/a420tquattro.html</a</li></ul>
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10-26-2006, 02:39 PM
#8
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Re: Is this a good deal?
I dont believe its a good deal and IMO never put any money down on a lease. If the car is stolen or totalled in an accident the lien holder is covered but you will loose your down payment. Also, long leases, beyond 36 months, usually get less efficient. So combining those two facts makes this a weak deal and most importantly the dealer has given you nothing!
- Al
- Al
10-26-2006, 02:46 PM
#9
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I hope he can find one.....
the C6 has some very nice improvements over the C5 (still a great car). It seems the price keeps swirling up and up.
when the C6 came out and I got quotes on them they were around 700/month but around 2,800 down.
8 ^ )
when the C6 came out and I got quotes on them they were around 700/month but around 2,800 down.
8 ^ )
10-26-2006, 03:02 PM
#10
Well, you can see from my other post that with no discount it should be around $675 (before tax)
If the dealer wants/needs to make the deal, they should be able to lower the monthly by another $25 to $35 a month and still make a fair profit. Of course the customer can choose to keep the payment about the same, but put down less money - $24 per month for every $1000 difference in price or amount down is a general rule of thumb.
If the dealer can sell the cars for this price all day long, then it will be hard to convince them to sell it for less;-)
If the dealer can sell the cars for this price all day long, then it will be hard to convince them to sell it for less;-)