Eric

I have this crazy idea that I will be able to lease an S4. According to the AFS website I could get my payments under $600/m. Is this reasonable? I would like to know any information about lease terms, rates, mileage, etc. I am tryiny to convince myself that an S4 is out of my reach. Thanks

Steve S.

He can give you the details...my memory is failing badly. Find his email on the S4 forum.

Steve S.

TY

Read my posted message on this page below

MoMan

The lease of my S4 is $550 per month for 39mos/39K miles. $4,300 at signing, includes all taxes and fees and licence. At the end, option to buy is $25,000.

Working on the numbers

MoMan,

My main goal is to figure out what your residual rate and money factor was for my own negotiating.

Trying to back into your figures. As a safe assumption let me say your negotiated price for the car was at little to no discount or an MSRP of about $42,000. It is hard to tell what your down payment was (clean of other non-negotiable fees), but I'm guessing it is around $1000 pure capital cost writedown. Your net negotiated lease price is $41,000.

Since your given residual value is $25,000, Audi Lease is saying the car is about 61% of the net negotiated price (about average).

Now your monthly payment is $550 (I bet you quoted us the pretax rate - at 5%, your actual monthly payment sounds like $578), which is composed of a depreciation fee and interest fee. The depreciation fee is simply $41,000-$25,000=$16,000/39 months or $410 a month. Your interest fee is therefore $550-$410=$140.

The interest fee is based on the following calculation of $140/($41,000+$25,000)=.0021 or about a 24*.0021=5.0% interest rate.

5.0% interest rate is ridiculously low - I doubt I can get this. I may have taken some wrong assumptions, but did you use a credit union? My numbers are very sensitive to your rounding up or down of the residual, the negotiated price and the monthly payment.

Signed,
Geek

MoMan

I am in NYC, tax is 8.25%. I paid ALL taxes up front. I think the money factor was .0320, thats what Audi was offering for the Nov. I worked out all the numbers so my monthly payt is $550.

Geek

I see with the tax.

Let me see then. I'm guessing your adjusted lease price was then $38,500 - which sounds like you got a good deal or you're paying something upfront (maybe a grand)?

Then the numbers work out to be a 65% residual value (which is very good - I definitely will work this one). I can now back into your $550 almost exactly (got $549). The .0032 money factor is more reasonable (about 7.7%).

The key was the 65% residual at 12,000 miles. The dealer I've been working on only said 62% - the SOB.

Thanks much MoMan

Geek