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Prices Paid: Buying & Leasing Experiences Audi A4 Lease Questions
3146 messages, Last post on Dec 07, 2009 at 10:58 AM
You are in the Prices Paid: Buying & Leasing Experiences Forum. Your Hosts are car_man & kyfdx
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Replying to: cluelessinla (Sep 08, 2005 1:39 pm)
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Replying to: mcmuney (Sep 09, 2005 1:24 pm)
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| I am about to lease an 06 A4 2.0 while the current leasing specials are still around (until 30 Nov I believe) 2 yr lease, first payment (369) plus acquisition fees due at signing. Now the vehicle I have picked out has a higher msrp then the model leasing for 369 so I'm obviously willing to have a higher payment. My question is this , can you negotiate on car pricing when your leasing and not buying? It may be an obvious answer to some but this will be my first lease and was not sure. Along with that how much over invoice should I be trying to haggle with assuming you can with a lease? here is what I'm looking at MSRP and what NADA had for invoice. the car I want with its options has an msrp of 37,335. invoice on NADA is 34,791. Now on top of the dealers pricing and this leads to another question they have a dealer mark up of 1,995 (alaskan mark up) dealer prep 250$, a pan heater 200$( cold weather this I need) and something called propack 989$(which is marked as optional) so that brings their selling price to 40,768.. Now with all this info I'm hoping someone can tell me where I need to start at when negotiating the price I will lease it for. I have no intention of getting the propack (dont even know what that is) or paying the alaska mark up or the dealer prep. Is this being realistic or will I have to pay this? If not that takes off 3,234$ of their asking price of 40,768 bringing the total to 37,534 about what the MSRP was originally. All that mark up, dealer prep, propack seems like bull crap to me, is it? Any help would be appreciated and soon please, also keep in mind this is the only Audi dealer in Alaska so if I leave with out the car I cant just go to the next town to another Audi dealer. And this is the only car I want. I am not trying to get the car for invoice or 200$ over invoice just something reasonable for both parties cause I cant see paying exactly what they are asking, is 1500 over invoice appropriate perhaps? Help please anyone with knowledge on pricing and leasing.. | |
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Hi gpulls. Let me begin by saying that you definitely do not want to make a $7,000 down payment on a lease! I always advise consumers against making any sort of down payment when leasing. I do so for two main reasons. The first is if your vehicle is totaled in an accident or stolen during your lease, your insurance company pays off the bank that you were leasing it through and your down payment essentially disappears. The second main reason is that down payments on leased vehicles do nothing to reduce their lease-end purchase prices. So your lease-end purchase option price for your A4 would be exactly the same, regardless of whether you had put $7,000 down, or had made absolutely no down payment at all. The selling price that you were quoted for this car is a little on the high side. While at first $750 over invoice seems reasonable, once one take the fact that Audi is currently providing $2,500 dealer cash on this car into account it is more like $3,250 over invoice. You need to renegotiate this car's selling price and then have the dealer that you are working with calculate your lease payment using Audi Financial Services buy rate lease money factor of .00270, or better yet find an independent bank that bank that has a better lease program and run it through that. While it is not providing any dealer cash on the '06 version of this wagon, its lease program is much more attractive on it. Its 3 year, 10,000 miles per buy rate lease money factor and residual value for a 2006 A4 3.2 Avant are currently .00155 and 57%, respectively. Car_man Host Smart Shopper / Prices Paid Forums
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Hi gflo1. I really can't calculate a realistic lease payment on this vehicle for you without some sort of selling price. For now I can calculate one for you using a selling price of $1,000 under MSRP, which you should be able to beat. If you were to lease a 2006 Audi A4 2.0T Avant with an MSRP of $36,670 and a selling price of $35,670 through Audi Financial Services right now for 36 months with 15,000 miles per year, its zero down, pre-tax monthly payment should be around $477. I do not believe that Audi is currently offering any owner loyalty cash on this model. Car_man Host Smart Shopper / Prices Paid Forums |
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Welcome clueless in LA. Since you are new to the world of leasing, you definitely should check out the following informative articles that are available here at Edmunds.com prior to visiting any dealers: 10 Steps to Leasing a New Car and Calculate Your Own Lease Payment. The two most important numbers to focus on when leasing are your vehicle's selling price and the lease money factor that is being used to calculate your monthly payment. These are the two main profit centers for dealers on leases. The selling prices of leased vehicles are negotiable, just as if you were paying cash for or financing them. You may be able to get a good idea of how much you will have to pay for the car that you are interested in by visiting the following discussion: "Audi A4: Prices Paid & Buying Experience". Once you have negotiated an attractive selling price, have the dealer calculate a lease payment on your car using Audi Financial Services "buy rate" lease money factor. If you do not insist upon the dealer using the buy rate, which is currently .00220 for a 2006 A4 3.2 Quattro sedan there is a chance that they will try to mark up this car's factor to add additional back-end profit to your deal. Car_man Host Smart Shopper / Prices Paid Forums
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Hi quest3. The selling prices of leased vehicles absolutely can and should be negotiated, just as if you were paying cash or financing. The exact amount over dealer invoice that you are able to negotiate will vary from model to model. You may want to stop by the following discussion to get an idea of how much you should pay to lease the car that you are interested in right now: "Audi A4: Prices Paid & Buying Experience". The prices that you find posted in this discussion will likely be lower than the one that you eventually end up paying because you are in a market, Alaska, where there is not much competition for your business. I suspect that you already know this but just in case you don't, I have heard that it is actually cheaper for many Alaskans to purchase their vehicles in other states, such as Washington, and have them shipped home than it is to pay the large mark-ups that Alaskan dealers charge. Car_man Host Smart Shopper / Prices Paid Forums
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Hi Car_Man, Can you tell me the money factor and residual values on the 2006 A4 2.0T Quattro Sedan for 24 months with 15k miles per year? Also, can you tell me how much dealer cash Audi is currently providing? Thanks for all you do!
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Replying to: nick_metro (Sep 12, 2005 4:27 am) The residual value on a 24 mo 15k is 73% and a converted lease rate of 3.336%. There is no cash back on 06 models right now.....  Leigh
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Replying to: bigdveedubgirl (Sep 13, 2005 6:26 am) Thanks Again!
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