sor

Don't you pay interest on the full loan? I.e. you're financing the full net cap cost, even if you don't have to pay it all off.

NHman

When leasing the finance charge is calculated as follows;

(cap cost + residual value) * money factor

Therefore a potential buyer can reduce the cap cost but still have some amount of interest as the residual is a fixed value. This is the reason to use multiple security deposits to lower the m.f. rate as much as possible.

For reference, cap cost is the buy price (inclusive of rebates and incentives) minus down payment (or cap reduction).

fbarillas

I prepaid my entire lease on my 2011 S4. Audi lowered my MF by 0.1 which for me was a pretty good rate of return on my money especially given the low interest rates I can get anywhere else.

I am two years into the lease and I could buy the car anytime now for the residual value minus a small interest discount which comes from the fact that I will not be borrowing the residual value from Audi anymore. I am assuming that in the unfortunate event that my car were to get totaled I could just buy the car from AUDI and be reimbursed by my insurance. The only risk is that they will not value it as much as I think it is worth.

I love my car and since I only have 17k miles on it 2 years into my 36k miles lease I am thinking of buying my car from AUDI right know and get the small interest discount. I got a buyoff quote from them equal to my residual value plus taxes minus a small interest discout. Do you guys know whether it is possible to negotiate the buying price? I know that BMW negotiates with people at the end of the lase but never heard of Audi doing this except for waiving the end of lease fee and overlooking small dings if you get into a new Audi.

Audis or VWs 4Life

My 2012 S4 landed at 0 down (other then Title, bank fees, and first month ~$1400) $670 a month with tax. Without tax its like $620. 36 mos 15k miles a year.

Window sticker was 54 (premium plus) buyout is 30k. All in all its a good deal.

zillmc

2013 Prestige Estoril, adaptive suspension, sport diff, leather, sunshades, rear bags, stainless steel, 19" peelers, $61,970.

864/mo after tax, 0 down, 15k/year, 36mo, loyalty discount, through AFS.


Agree with the posters here, that's not a good deal and if you can't realistically afford to finance the car, probably shouldn't lease it either, putting $10k down on a lease is well, in this man's opinion, not a financially smart decision. If your budget is $500/mo max, the S4 unfortunately is probably not the best choice financially.

NYRS4

Ran the numbers to see where you would have to be on a bare bones car for $500 a month

Base S4 $48,495 MSRP
Invoice $45,596
Now assume the car is sold at invoice which should not be that hard to get.


With $5,000 due at signing (this includes tax(8.375), first month payment and bank fee) you can lease the car for $504 a month at 10k miles per a yer 36 months. That is assuming the dealer does not charge you any other BS fees.

igord

That 5k has roughly 35-36 hundred in cap reduction, spread that over 36 months and you get $604.

Just saying...