Help me figure out what's happening on this lease

Ask the Hackrs
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1

So after looking at the great RS e-tron GT leases some folks were getting, I went to try my hand on one. The deal they worked for me was pretty good, but not remotely as good as the best I’ve seen here, and what’s worse the numbers don’t seem to make sense. Maybe I just don’t understand leases, so I’m going someone can give me a hand figuring it out.

The Numbers-

12/7,500

MSRP: $164,890
10% discount: $16,489
“Financed Aftermarkets” (label etch, whatever): $199
Audi Innovator: $20,000
EV Lease Credit: $7,500
Closing Credit: $5,000

So putting those numbers together, we get a cap cost of $116,100.

The residual I’m being given is $113,774.10.

Add in $1,099 for Audi Care and $699 doc fee.

That seems like before taxes, my total lease amount should be $4,123.90 (cap cost minus residual plus fees.) Taxes in NY are 8.38%, so add in about $2,000 (when including taxable rebates/discounts, though the dealer is in CT.) So call it about $6,400.

They’re quoting me a yearly one-pay total of about $20,000. It’s still a great deal (almost 10 leasehackr score) and still well within what I was planning to spend this year, but if I can get that down some I’m not going to complain.

So what could be going on? Are they just charging me a ludicrous MF? Is there something I’m missing?

2

Did they share the deal sheet with you? As them what the MF is that you are being charged, but there is definitely some weirdness. If I read it correctly they are charging you $20K annually so over $1500/mo? That is not a great deal IMO.

3

Post a link to your calculator

4

Here’s the calculator, as close as I can make it to fitting the numbers.

Per the calculator, everything seems to be correct per the calculator. So then, how are people able to drive off with these at $700/month? Where am I going wrong?

5

I posted the calculator in another comment. Ultimately, it’s still just about a 1% deal (albeit on 12 months and 7,500 miles), even after NY taxes, so I’m not mad at it – it’s a hell of a car to drive for a year for under $20k (to compare, we cross-shopped it same day with a Lucid Air Pure AWD, which is currently leasing at $8k down and $800/mo, or a first-year cost of about $17,000.)

I’m still very comfortable with the numbers, just trying to figure out how all of the same inputs translated to a different output than, for example, this deal - SIGNED!: 2023 Audi RS e-tron GT $158k $664 Base Monthly w/$2059 DAS

I know my car is about $10k more expensive (it has literally every option offered on the RS – even the ones I’m not thrilled about like 21" wheels, which are a pain to find winter tires for.) But with an identical residual percentage, the numbers shouldn’t change that much unless I’m missing something big.

6

Sounds like a bumped up MF (11%-12%?). Even on a one-pay, you have to pay interest on the residual value since Audi Financial is buying the car and lending it to you for a year. So you’re paying ~$13600 worth of interest in a year on $113774.

7

I haven’t tracked the discounts and rebates closely to see if yours is worse. But assuming you take this car (personally I wouldn’t take wheels that are hard to find winter tires for) then just changing the structure of the same deal via

  1. Taxes and fees upfront

  2. 9 MSD

Changes your total cost from $19,xxx to $17,xxx.

Just as importantly, if you choose to and AFS allows you to extend, then your extension will be $960 + tax instead of $1,5xx plus tax.

No, they’ll change a lot.

1 Like
8

I guess I don’t understand depreciation as much as I thought. I expected depreciation to be the difference between purchase price and residual, but it looks a little more complicated like it’s amortized as well.

9

You are not paying that much per month in depreciation expense. It is all the fees, higher MSRP and the higher MF that are making a big difference.

10

I’m too lazy to do the math, but, assuming MF is the same, the absolute amount changes of depreciation changes (and rebates will have a greater impact on a smaller absolute amount of depreciation), even if the percent depreciation remains the same.

I think.

11

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