HELP! Current money factor on leases?
10-28-1999, 10:30 AM
#1
Guest
Posts: n/a
HELP! Current money factor on leases?
I'm negotiating a lease on a TT Quattro. The residual looks good,but I'm being quoted .00399 as the money factor. I believe that works out to an interest rate of 9.576%. Seems awful high. Anyone get a better rate lately? And does Audi set these rates?
N
N
10-28-1999, 11:59 AM
#2
Guest
Posts: n/a
DUDE...shop around to other dealers....
DUDE...shop around to other dealers....I did...go to the audi usa site and find dealers within 150 miles of you...pick a few to start...tell them you are shopping...let them know you know that they can not gaurantee the rates will stay the same but you want good #'s and on paper...if rates go up a little you will pay a little more...if they stay the same...you get your good deal...I am shopping around and found a $50.00 a month difference...the best rate I found here in NC is 7.69 (from audi financial)
good luck!
this is what I am getting...
TT Q no other options for $903.00 total down and 425.00 a month (4 years and 10k miles) I will probably sell it in the year 3 to break even and get a new one)...If you are not running it through your business...a lease will screw you.
good luck!
this is what I am getting...
TT Q no other options for $903.00 total down and 425.00 a month (4 years and 10k miles) I will probably sell it in the year 3 to break even and get a new one)...If you are not running it through your business...a lease will screw you.
10-28-1999, 03:53 PM
#3
Guest
Posts: n/a
No offense, but you probably shouldn't take financial advice from someone who uses "DUDE"
Given the VERY high residuals that Audi financial is given, a lease can actually be an excellent financing option for several reasons:
Look at a lease as a loan with a bullet payment. You borrow the $35k upfront, pay a constant P&I which amortizes to a balloon payment at the end. Audi (or a bank) from your perspective, guarantees that the car will be worth the balloon payment. The high residuals on the leases in effect lower the Principal portion of the lease payment.
If all of the controversy does end up affecting the resale values, you can walk away at the end while people who bought will have their cars worth less. If the car is still very hot, you can always buy it at the end and even flip it if you don't want it. If you want to keep it, Audi finance would likely offer a relatively attractive rate since it is costly for them to take it back.
Finally, at below 8%, the interest rate on the lease is just about the cheapest financing around after a 1st mortgage (probably equivalent to the after tax cost of most equity lines).
With all of this B.S going around and people worrying about their resales, those with leases who understand what they really are should be sleeping well!
Look at a lease as a loan with a bullet payment. You borrow the $35k upfront, pay a constant P&I which amortizes to a balloon payment at the end. Audi (or a bank) from your perspective, guarantees that the car will be worth the balloon payment. The high residuals on the leases in effect lower the Principal portion of the lease payment.
If all of the controversy does end up affecting the resale values, you can walk away at the end while people who bought will have their cars worth less. If the car is still very hot, you can always buy it at the end and even flip it if you don't want it. If you want to keep it, Audi finance would likely offer a relatively attractive rate since it is costly for them to take it back.
Finally, at below 8%, the interest rate on the lease is just about the cheapest financing around after a 1st mortgage (probably equivalent to the after tax cost of most equity lines).
With all of this B.S going around and people worrying about their resales, those with leases who understand what they really are should be sleeping well!
Thread
Thread Starter
Forum
Replies
Last Post
armoredsainTT
TT (Mk1) Discussion
27
10-08-2003 08:15 AM
Future TT Owner. (Maybe)
TT (Mk1) Discussion
6
02-25-2000 12:00 PM
