First time posting here, been reading through a lot of posts and learning a lot. I am interested in leasing an Audi S4 for 36 months / 12k year. I recently received a quote from a dealership but I am having trouble understand the numbers. The way they structured the quotes is quite different from what I have been seeing here. Could anyone help break it down for me? It seems like the residue is 52% and quote does not include AudiCare. The dealer said I am getting 14% off the car, but that doesn’t seem right.
Is the rebate and customer cash getting subtracted from the gross cap cost? And why would my drive off be $4000 here?
I will be trying to go to another dealership tomorrow to negotiate. So it’d be helpful if I can have a stronger grasp on the numbers before going in.
You don’t know the money factor they are using but likely bumping it up from the buy rate of .00052. If I bump it .0004, i get close to their numbers with the below calculator.
The total drive off of $4K includes the $3K lease cash so still only $1K DAS. I added all the dmv/doc fees to the acquisition to get similar money down as they are showing. Didn’t know your specific tax rate but guess based on the total tax outlined. They are giving you about 8% dealer discount, which is pretty weak. Their 14% number includes the lease cash which is available by default from Audi so not coming out of their pocket. You can definitely do better.
So if I’m understanding correctly, instead of subtracting the lease cash from cap cost, they are presenting it as a drive off fee? And the tax should be 9.75% in my area.
It’s clearing stating on the sheet, customer cash $1000, the $3000 rebate is just being used as cash down, cap cost reduction, whatever you want to call it, it’s all the same either way. Tax looks right, that’s the total that you will pay over the term, comes out monthly. The incentive is probably taxed too
Hm I guess my understanding of cap cost reduction is weak still. If they are providing a $3000 cap cost reduction, why is it reflected in the total drive off?
Cap cost reduction is weak? That doesn’t make sense.
Cap cost reduction typically refers to cash down, but in this situation they are showing the lease cash this way… in the end, same result… discounting the sale price vs showing it as cap cost reduction. Lease contracts show it this way and handled similarly as cash down.
I was saying my understanding of the concept is weak. But I’ve been trying to wrap my head around it and I think it makes sense. Essentially the same thing after I try it on the calculator. So my goal now should be to get more off on the initial MSRP. Thanks for your help everyone.
I would push for a deeper discount. I don’t have all the details behind it, but I was offered an S4 by a local dealer with an MSRP of $62,040 for $1500 up front and $549 per month including MA taxes (6.25%). I know around here I’m being offered $4K in lease cash on A4’s and S4’s right now as well.
