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Prices Paid: Buying & Leasing Experiences Audi A4 Lease Questions
3147 messages, Last post on Dec 08, 2009 at 9:02 PM
You are in the Prices Paid: Buying & Leasing Experiences Forum. Your Hosts are car_man & kyfdx
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Replying to: mcwenzel (Jun 01, 2007 9:01 am) Also, this doesn't strike me as something that most people would care about. Someone who keeps the car for the entire lease period with normal wear and miles (as most do, I assume) would be fine. Again, it's good to understand their policy, but I think trying to steer people away from leasing with AFS for this reason might be a bit extreme. Just my $0.02...
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Replying to: dm13850 (Jun 01, 2007 11:49 am) It is also deceptive, because they claim the buyout price is based on "fair market value", but that value changes based on who the car is being sold to, and whether the customer is purchasing another Audi or VW. Moreover, the FMV is not a reasonable price reflective of the actual value of the car. They actually mentioned something about Kelley Blue Book in setting the FMV, which is silly. People should care about it because it further impacts the already limited flexibility a lease provides. While most people will probably never try to get out of their lease early, if they need to, this can be a huge impediment, and won't be discovered until you are in the situation. It is a policy I find hostile to the interests of the customer. It is a practice that is counterintuitive, and a practice not utlized by other leasing companies. Audi contracted to a certain residual price with the customer, with the expectation the car may be purchased at that price. Audi cannot sell that car at auction for more than the negotiated residual, so they will actually end up losing money by preventing the leaseholder from having the dealer or a third party buy the car at the residual or residual plus remaining payments depending on the timing as opposed to turning the car in at the end of the lease. The practice of artificially increasing the buyout price for a third party to purchase the car makes no sense -- it is simply a transparent attempt to gouge the customer because they can. The odd thing about it is, these are Audi customers they are doing this to. My point is that this is a practice not utlized by other leasing companies, and people should be aware of it, because it's not even buried in the fine print. Knowing this policy, I would never lease from Audi Financial Services again unless my company were paying the bill and assuming any and all liabilities for lease termination. |
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Replying to: mcwenzel (Jun 01, 2007 9:01 am) You can apparently swap out of your lease and get someone to assume your lease obligations (with AFS approval). Try the leasetrader.com site. Sorry that you got stuck but car leases are complicated financial transactions - if one doesn't understand them, don't do it. I was very well versed on leases, knew the MF and invoice and negotiated thousands under MSRP but ... I still may have got a couple of points too low on my residual. Also, if one's income stream is not certain, leases are not a good idea.
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Replying to: edwardsf (Jun 01, 2007 4:06 pm) I read all of the contractual terms. The contractual provisions explicity permit a lease buyout. Lease buyout does not consitute a breach. You are confused about what constitutes a breach. If Audi wanted to put in a contractual penalty for an early lease buyout they could, but they don't. They expressly permit a lease buyout in the lease contractual provisions. Again, an early lease buyout does not constitute a breach. A buyout at the end of the lease does not constitute a breach. The issue is the disparate buyout price based on who is buying the car. Audi does this whether you are in the first or last month of your lease. It has absolutely nothing to do with a breach of contract or early lease termination. I got a great deal on my Audi, with a very low MF and with a reasonable residual. Unfortunately I can't take full advantage of the bargained for residual. My statement regarding how other companies handle the exact same situation is 100% accurate because I verified it. Again, it has nothing to do with breach. I really don't want to get bogged down in complex legal issues. The facts are the facts. I point this out simply to warn others of my experience and the inflexibility of Audi which stands in stark comparison to other lenders. Luckily I am not stuck because my lease is just about over, and it won't cost me too much, but others could be impacted more greatly. |
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Hi, New to leasing but was offered at the dealership: a4 2.0 quattro msrp: $32,300 $3000 down $400/mo (tax incl.) 36mo/lease a4 sline quattro $40k range $4000 down $480/mo + tax 36mo/lease I'm kind of new to leasing and was previously looking to buy a used 2005/6 in the low 20's and thought leasing might be an option...get a new car for lower monthly payments...but the amount down seems a bit high. I have excellent credit and should always get the lowest rate...although leasing and residual value etc...confuses me a bit. What's reasonable for the southwest? I don't need a superb deal just something fair.
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Replying to: jazz11 (Jun 02, 2007 2:34 pm) $379* lease per month for 36 months Now through July 2, 2007 Down payment: $999 Refundable security deposit: $400 Acquisition fee: $575 First month's payment: $379 Amount due at lease inception: $2,353 EXCLUDES TAXES, TITLE AND DEALER FEES Try asking for a couple deals with 0 down or 1k down, see what you get.
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Replying to: bvdj84 (Jun 03, 2007 6:34 am) ok thanks....when I went in there, the sales person said that $2,353 doesn't include the dealership fees and the low monthly payment only applies to the base models. Everything is negotiable but being new to leases I wasn't sure on what you negotiate. Also do you negotiate on APR with leases? My credit union says I can get 6% no problem. If 0 down or 1k down is offered, the monthly payments usually go up also? Reading the forums a bit I see a lot of weight is put on residual value. Anyway thanks for the info I'll email a few dealerships in other states. |
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| I TEST DROVE TWO A4'S 2.0 CVT FRONT TRACK AND A A4 3.2 FRNT TRACK I LOVED BOTH OF THEM MY WIFE WAS VERY IMPRESSED, ALSO BECAUSE SHE WANTS A CAMRY ARGH. WELL I RATHER LEASE THAN BUY BUT I WNT 36 MOUTHS 15K A YEAR AND LITTLE TO NO DOWN AS POSSIBLE I AM IN SO CAL. ARE THE NEW LEASES ADVERTISED GOOD ONES. THANKS ANY COMMENTS | |
| Just wondering if you can expect a better deal if you have an excellent credit rating when leasing or is a credit rating irrelevant? | |
| It always plays a factor | |
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