Last post on Dec 05, 2013 at 3:32 PM
You are in the Prices Paid - Buying & Leasing Experiences
What is this discussion about?
Audi S4, Car Buying, Car Leasing, Sedan
#305 of 559 2013 S4 Prestige Lease
Jan 30, 2013 (6:10 pm)
I'm looking to lease a 2013 S4 Prestige for 36 months with 10k miles a year. The MSRP is $62,270.
The dealer gave me these numbers:
Selling price - $60,365
Title and registration - $221.65
Money Factor - 0.00098
Residual - 55% (10,000 miles)
Wear and tear insurance and Audi Care - $1,679
$4696.88 of negative equity rolled into the payments.
$0 out of pocket.
The dealer is quoting $1113.00 per month including tax (PA). Does this look okay? Is the residual and mf look normal?
Thanks for your help!
#306 of 559 Re: 2013 S4 Prestige Lease [jauri7788]
Jan 30, 2013 (6:51 pm)
Selling price is too high, at least $1K too high. Look up invoice here on Edmunds.com. Shoot for sales price of $500 over invoice by offering $1K under invoice, especially if the car is on the lot.
Money factor should be .00068 for a 36 month term if you qualify for top tier credit. Residual is spot on with AudiCare.
IMHO, drop the wear and tear insurance. AudiCare MSRP is $880; at best, you'll get $50 off that price.
Not sure where the negative equity is coming from, but you may want sell that car privately, or push for a better trade in value. When you start throwing trades in the mix, you muddy the waters and it is harder to tell what kind of deal you are actually getting.
With all that said, that monthly payment is downright scary.
#307 of 559 Re: 2013 S4 Prestige Lease [isles1]
Jan 30, 2013 (6:59 pm)
Thanks for your quick reply!
I thought it was too high as well. How much should it be even with the negative equity? I ran the Edmunds lease calculator even with the numbers the dealer gave me and it was like $100 lower than his number. When I confronted him, he kept telling me that there are upfront costs of $2065, acquisition fees, title and tag fees and etc. Is this all a dealership bullshit?
#308 of 559 Re: 2013 S4 Prestige Lease [jauri7788]
Jan 30, 2013 (7:13 pm)
First negotiate the sales price as mentioned above based on invoice.
Then move to why the money factor is higher than the "buy rate" money factor.
$695 is the acquisition fee on all Audi leases. You'll have to ask the dealer to break down the rest of the $2065 of fees. "Documents fees" and "dealer prep fees" are BS and you should not pay them. Title fees and DMV fees are legit, of course.
You'll have to add the negative equity into a lease calculator as an additional cost. This calculator usually comes within $10 of the dealer figures: http://www.leaseguide.com/calc.htm
#309 of 559 Re: 2013 S4 Prestige Lease [isles1]
Jan 30, 2013 (7:18 pm)
Thanks so much. When you calculate the lease residual value, do you use percentage of the MSRP or the selling price of the car? I thought it was the selling price of the car, but the dealer said it is calculated on the MSRP of the price. Again, I appreciate your help.
#310 of 559 Re: 2013 S4 Prestige Lease [isles1]
Jan 30, 2013 (7:20 pm)
Also, I qualify for the Audi loyalty. Where should that be applied?
#311 of 559 Re: 2013 S4 Prestige Lease [jauri7788]
Jan 30, 2013 (7:38 pm)
Residual is based off of MSRP...that is to the lessee's (your) advantage.
Negotiate the sales price with your dealer WITHOUT factoring in the Audi Loyalty incentive. The incentive will be treated as a $1K cap cost reduction, which you will pay sales tax on. So you are aiming for $500 over invoice (or less if you can haggle well) BEFORE the loyalty incentive. This incentive is not a cost to the dealer; it is an Audi of America "subsidy", so do not let the dealer skew the numbers on you.
The lease calculator I linked you to above handles all the correct calculations for you, including sales tax in the payment.
#312 of 559 Re: 2013 S4 Prestige Lease [isles1]
Jan 30, 2013 (8:12 pm)
Thanks so much. Looks like the dealer was trying to rip me off... So sad I just found this site today. I've been getting ripped off for years...
#313 of 559 Re: April leasing [quattrorings]
Feb 03, 2013 (6:56 am)
Hi quattrorings. Wow, there's been a lot of posts about leasing the S4 lately.
Audi's current lease program is scheduled to run through April 2nd. It's difficult to say what will happen to its program after that. I don't know what the cutoff for Audi Financial Services' top credit tier is off of the top of my head, but I suspect that it's in the 700's...say 720 or so.
Prices Paid: Buying & Leasing Experiences Forum
#314 of 559 Re: 2013 S4 Prestige Lease [jauri7788]
Feb 03, 2013 (6:58 am)
Hi jauri7788. Vehicles' dollar residual values are calculated by multiplying the residual value percentage times the full MSRP, including the destination charge and the MSRPs of any options that can be residualized.
Prices Paid: Buying & Leasing Experiences Forum