I need help on evaluating this deal for a 2023 Premium Plus S4 (Black optic, S Sport pkg, Napa leather).
Was quoted $750 for 36/10k and 5k down.
At any other time I would say this is not a good deal, especially at 5k down, but realistically how much further south could I get this in today’s market?
Holy hell that MF. That’s near 14% interest. What’s Audi doing? They’re usually around .0200.
I do see though the RV may be subvened and rolled into the high MF… strange because there doesn’t seem to be any real incentive for the leasee unless Audi Financial wanted to make money on the rent charges over capturing accurate RV… I wonder if they’re hedging their bets the market will continue to be what it is in three years and this way they reap higher payout at contract end.
I would 100% not do this deal. Just finance it at this point if you can get an APR lower than 5.
Given the high money factor, is there a realistic monthly payment I could aim for to at least make the lease deal reasonable enough to consider?
Also what would be a reasonable monthly payment to ask for in a similarly spec’d 2022 model?
And I am definitely open to financing but really would like to keep my payments around $750 or less. Any chance that is possible with a 2023 or 2022 S4?
Giving $5000 as due at signing gets your monthly to $750 however in reality that’s $890 month. Given your profile / username I assume your looking for high horsepower / thrust to weight ratio kind of car.
It’s beyond tough in the current market for all cars in that category. It becomes even tougher when you heavily leans towards leasing vs financing. While neither climate is great, leasing at this mf with this rv and very little incentives or discount makes it beyond tough to say, this is a good idea.
Unfortunately there’s no magic button for “this is the monthly you should get.” If those are the lease programs then those are the lease programs.
It’s between you and how much the dealer is willing to discount. You’re getting incentives from the manufacturer. Is the selling price before or after incentives? If it’s after incentives then maybe you can negotiate a discount? Discounts will be very challenging to come by in this market and probably impossible for this car right now.
Focussing on just the monthly won’t help get you a good deal. I would strongly recommend reading up on leasing 101 to have a better understanding of the basics (Leasing 101 — EDITORIAL | LEASEHACKR). I would also suggest looking at other cars that might lease better in this market.
Is the $5,000 total due at signing or cap cost reduction?
Is the $750/mo pre or post tax and if the latter, what’s the tax rate?
I’m going to assume that it’s $5,000 DAS and includes tax.
In this scenario, your rent charge on the lease is $11,953. By comparison if you finance even at 3.9% for 72mo, you’ll pay $900/mo ($5400 more over 36 months) with the same $5,000 das, but at 36 months you’ll owe $30,400 (already taxed) vs $41,489 residual (plus tax) having paid $5,211 in interest on financing. So you’ll save $6,742 in interest over 36 months by financing. But the car needs to be worth $35,800 on trade in after 3 years to come out even (net cost over the term) on the purchase versus lease if you planned to turn it in at lease end.
If you can keep the car out to 5 or 6 years, purchasing is the only way to go.
I don’t have a crystal ball, but my experience in the past year is that a next model year S4 will likely be worth 35k at trade in after 3 years and 30k miles. I think finance is the way to go on this.
I’ve test driven the S4, M340i, and Tesla model 3 performance. I would consider any of the the 3 but would prefer S4 due to interior and aesthetics slightly over M340i and Tesla is the least engaging to drive but I can’t deny the power and appeal of electric.
Having leased a 2018 A4 P+ and currently leasing a 2021 A6 P+ with black optics, I can say that the S4’s interior is quite a disappointment. The dash looks similar to my old A4. Main difference is that the screen is now touchscreen.
As for the M340i, I test drove one a couple of years ago at a BMW event. It is a fun car and the interior is pretty decent.
I have never driven a Tesla, although I’ve sat in one. All I can is that if you want one, finance it.
I can comfortably afford $750 a month on a car lease, I’m just trying to get an idea about what is a somewhat fair monthly lease payment in this scenario. How far off are we?
You’re not “far off” … you’re facing the worst auto leasing market, ever. 8.3% interest on the lease versus 3.9% on a finance.
Go check the marketplace here for S4 deals. I think 7% off msrp pre-incentive should be possible. I think you’re at 5.7% so another $800 discount.
Also, leasing 101 = never do a cap cost reduction. Your lease has a $3700 cap cost reduction so remove that and get the better discount as well. Your payment will be higher, by design. Cap cost reduction would be lost if your car is totaled at any point during the lease.
But again, leasing this car is going to cost you $5-6k net more over 3 years than buying it.
