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Audi A6, Audi A6 Avant, Car Leasing, Sedan, Wagon
#506 of 1299 Completely New to the Leasing Scene
May 24, 2008 (7:18 pm)
Hello, growing up, my family has only owned cars and I also have only owned cars up until this point. Right now, I am considering leasing a car and this deal caught my eye:
2008 Audi A6 3.2 Quattro
$639* lease per month for 36 months
$0 DUE AT SIGNING
Now through July 2, 2008
Down payment: $0
Refundable security deposit: $0
Acquisition fee: capitalized within lease contract ($575)
First month's payment: $0
Amount due at lease inception: $0
Excludes taxes, title and dealer fees
*36-mo. closed-end lease offered to qualified customers by Audi Financial Services through participating dealers. Must take delivery by 7/2/2008. Rate based on $50,425.00 MSRP of 2008 Audi A6 3.2 Quattro with Premium Package (includes destination charge). Purchase option at lease end for $24,204
I notice people here discussing deals different from this, even in the Washington DC area. Is this deal pretty much a rip-off? Or is it a good one that I should pursue? Also, how hard is it to qualify? I do not have much in the way of income or collateral, but I do have excellent credit (770+).
Just completely new to this whole leasing concept....
#507 of 1299 Re: Audi A6 leased May 20 [pharmx]
May 25, 2008 (8:35 am)
Hi. I've been looking to lease the same car. I'm curious how you go them down to $600 per month b/c audiusa.com is offering 639 per month at 10K miles. I need 15K and two dealers in NJ are telling me just to add another $45-50 to the payment so that woudl bring the lease up to $684 per month NOT including tax. They plugged no figures into the computer figuring out residuals or money factors. Also, does the audi lease include maintenance b/c one dealership offered to include maintance. Please advise.
#508 of 1299 Re: Completely New to the Leasing Scene [minamina]
May 26, 2008 (9:23 am)
lease deals on the Audi website are always very aggressive. They require a sizeable discount from the dealer, and all extra dealer money(s) and the lowest money rate factor are used in these ad to amke it attractive. So this add is not a rip-off.
#509 of 1299 Re: Completely New to the Leasing Scene [rjlaero]
May 26, 2008 (3:55 pm)
Thanks, so the deal is not a rip-off... In fact, it sounds very good if you're calling it aggressive.
But now the question is, what are the chances of a dealer honoring these promotions? Oh well, I guess I'll be finding out when I start go shopping in the coming month...
#510 of 1299 Re: Completely New to the Leasing Scene [rjlaero]
May 27, 2008 (7:38 pm)
i would assume we'll continue to see more "aggressive" A6 lease deals from audi in the next couple months. i'm in minneapolis and don't get the sense that '08 inventories are getting cleaned up much and dealers are still getting '08's from germany. am i way off base here? i realize the offset is residuals (continuing to fall) but inventories will always override this factor. am i missing something here, or will i benefit waiting till july to negotiate a new lease?
#511 of 1299 Re: Completely New to the Leasing Scene [mzig]
May 27, 2008 (10:41 pm)
Realize this is completely an assumption, but I think that A6 leases really cannot get any better. The A6 lease was actually less expensive in April than it is currently.
With BMW FS recently hiking lease payments, I think most captive companies are going to follow suit.
#512 of 1299 Re: Completely New to the Leasing Scene [mzig]
May 28, 2008 (12:02 pm)
I realize that this is a lease board, but I don't see any discussion re the Audi purchase/balloon program. I drove a 4.2 last weekend. In just generally discussing acquisition options w/ the salesperson (cash buy, finance, lease, etc.), she mentioned the balloon program is a buy program with a lot of lease features and, currently, has an interest rate that is a lot lower than the embedded interest rate / money factor in the audi lease program. She mentioned that the balloon program interest rate was only 2.9%, while the lease interest rate was 7%. Further, the balloon program, like a closed end lease, contains an annual mileage allowance and allows the buyer to turn the car in after a pre-determined period of time (e.g., 36 mos; 42 mos; etc). The interim payments are lease-like in amount; sometimes better.
Has anyone had any experience with this?
#513 of 1299 Re: Completely New to the Leasing Scene [sryn]
May 28, 2008 (12:20 pm)
I think you're talking about the Premium Purchase program -- which is what I opted for in 2004. It's definitely a good option, and works very much like a lease, but you have to run the numbers.
For instance, I'm paying 1/2 % interest, virtually nothing and just a tiny fraction above the subsidized rate that was available for leases at the time. So there wasn't any advantage one way or the other. The tax was a bit higher because I had to pay the whole sales tax at the front end (albeit rolled into my cap cost) rather than the lease tax payment, which is paid in installments as you make monthly lease payments and only applies to the portion of the car's value that you "use" (about half over the life of the lease). But I didn't have to pay any of the lease fees (acquisition and disposition fees). I'm actually in the process of turning in the car, and it's working just like a lease would -- with one added benefit. Audi is willing to finance my balloon payment at my existing subsidized interest rate. And that's way below market. It's even below the subsidized rate on certified used Audis.
When I ran the numbers, this program came out marginally cheaper, so I went for it and have no regrets. But I don't see any reason to do it unless it's cheaper.
Right now, the lease money factor on an A6 3.2 is less than 1%. I don't believe the 4.2 has a similar subsidy, so it sounds like you're getting pretty straight information.
#514 of 1299 Re: Completely New to the Leasing Scene [jpdc]
May 28, 2008 (12:52 pm)
Thanks. Further, being in Texas, the sales/use tax factor doesn't apply. In Texas, you pay sales tax on the full capitalized cost/purchase price regardless of whether you lease or buy. As you alluded, when it comes to leasing, most states only have you paying a use tax on the amount of your monthly payment (rent).
#515 of 1299 Re: Money factor math [colonote]
by Car_man HOST
Jun 03, 2008 (3:57 am)
Hi colonote. The formula that is used to calculate lease payments is outlined in the following informative Edmunds.com article: Calculate Your Own Lease Payment.
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