Hi guys, I’m about to enter a lease here in Houston, Texas
Year, Make, Model, and Trim: 2021 Audi A4 40 Premium
Down payment: $0
Monthly Payment: $400 (includes tax)
Drive-Off Amount: $400
Annual Mileage: 10,000
Does this sound like an ok deal? Should I bite?
Thanks in advance
It is practically impossible for us to tell you what a “good” monthly payment is for your specific lease as lease programs are highly dependent on region, personal qualifications, tax rates, etc.
We always recommend the following method before you ever contact a dealership. If you do all of the work up front, you’ll have a stress free dealer experience and set yourself for success.
- Read Leasing 101 (Blog | LEASEHACKR) to understand how to calculate a lease payment and the variables. Monthly payment is an output, not an input!!
- Pick a specific vehicle that you want to target
- Gather the current MF, RV and incentives from Edmunds forums for your zip code
- Research the LH marketplace and other deals that have been made recently on your vehicle - what was their pre-incentive discount? How did their lease terms differ?
- Plug your numbers into the LH calculator, and use a pre-incentive discount similar to what you have seen
- Create a target deal, this is what you’re trying to negotiate to. You can try different terms, selling price discount, etc. and see how your monthly payment is affected. It is also possible that different trims of your vehicle may have different MF and RV (i.e. this is very common with GM), so make sure that you look into that. Come up with a set of inputs that give you the output that you want - your desired monthly payment.
With a target price determined, you now have a deal to pursue and compare dealer offers against. More importantly, you have a solid foundation to work from.
Looks like a solid deal. I would be happy with that, specially given that Audi’s don’t lease well.
Thanks for your response, I’ve been doing lots of searches but haven’t been able to find a good number in terms of Residual value of the Audi A4. I did use a 57% residual value based on search results I found from Google and MF of 0.00046 the sales manager gave me (that was before he agrees to settle with $400/month drive off. Using LH’s calculator with all of the inputs I know, the $400 monthly get a LH score of 9.4 years.
I’m still relatively new to the leasing world and just wanted to check if I’m missing anything on the deal I got.
Having current, accurate information for residual value, money factor, and incentives is important in understanding your deal. As such, going directly to a source that has access to that data from the captive banks is your best option. The forums at Edmunds are where we go to get that information, as they have direct access to it from the captive banks. You’ll want to post of the model specific thread for the vehicle you’re interested in and request the most current numbers for your zip code. It is often easiest to find that thread by searching Google for “Edmunds lease” followed by the model of vehicle you’re interested in.
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