Same thing applies in NJ if you total your vehicle before lease end, you will get a portion back
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Thanks @AP919!
Yes, getting a prorated portion back when the car is totaled made sense, but not clear how the state handled the car leaving the state under a different lessee and who could apply for the refund.
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Thoughts on this deal please.
A5 Sportback Prestige (yes, I know the P+ lease a little better)
I think I might be able to get the sales price down a bit more, but not sure as they seem resistant to taking off any more.
It’s $3550 off MSRP + incentives of $1750 (marketing allowance + rebate)
Dealer is coming up with $648/month, not the $669 a month the calculator is coming up with
I can’t figure out the difference, but they did confirm the 52% residual, and the .00081 MF using the MSDs that I put into the calculator.
When I look at the total cost of the lease assuming I were to buy it out at lease end looks like about $3k less than a traditional finance.
Try to see if you can get an extra 750 or 1k off the selling price to put you over 10% discount.
You’re already using MSDs to lower the MF and maybe think about getting audicare to bump the RV since you’re lease term is so long.
With that being said, I personally think this is a lot of money for the car. I get that you’re leasing it at 15k miles a year, though.
He needs a lot more than $1k to put him over 10%. His calculator has the incentives grouped I with the discount.
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The residual I used includes Audi Care for the bump. I think there might be an extra 1% on the residual if I went down to 12k miles. I’ve only put 13250 miles on my current car in 17 months. The Audi will probably see more miles, but 12-15k per year? I doubt it.
Residual increases by 2% going from 15k to 12k
seems like a worthwhile bump.
If you don’t need the extra miles, it’s certainly not worth paying for the extra miles.
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It’s mind boggling how this even needs to be explained.
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Not paying for miles I don’t need? It doesn’t need to be explained. I just don’t want to go over and pay those extra fees. 10k year is probably enough.
The whole point of leasing is to pay for the exact usage of your vehicle considering that you’re paying the depreciation on the vehicle for 45k miles vs 36k miles by the end of Lease term.
Whether you pay for the miles at lease inception or in overage at the end, you’re still paying for it.
So the question remains, why pay for mileage you don’t expect to use?
Appreciate the advice. I’ll likely lower the mileage allowance to either 10k-12k/year
Using your calculator link and assuming $0.20/mile in overage costs, you’d have to drive an additional 2,900 miles/year to break even with the total cost of a 15k/year lease if you chose to go with 10k/year instead. At $0.25/mile it’s roughly 2,300 miles/year to break even.
If you went with 12k/year instead of 15k/year, those numbers change to 1,900 miles/year ($0.20/mile) & 1,500 miles/year ($0.25/mile) respectively. If you’re confident you’d be well under those numbers, 10k/year makes the most financial sense.
For peace of mind, going with 12k/year isn’t a terrible alternative.
That’s helpful. Thanks!
this is the first time I’ve really seen the MSD in action. seems like you could put the 5400 in something to get better than 1% return, no? or am I missing something?
Oops, yes I see what I missed. That’s interesting how that works
This is why I don’t think putting $ towards MSD is worth it. You can make more putting it into another investment. However, some people really enjoy having the lower monthly payment. So they’re willing to pay it to the dealer.
That was my initial thought too. But the (effective) interest rate is lowered about 1% in this case, and that applies against the financed amount, here, what over 50k. Saving over $1k in total cost of the lease.
that translates to 6-6.5% return over three years on the 5400, guaranteed. seems solid to me, and has no other downstream tax implications (and saves a little on the lease tax in most cases to boot)
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The law is clearly stated, but try to get your unused tax back from the State of NJ, they won’t do it. I am battling them right now, first off the clerk made me send her the lease agreements 5 times, then told me that wasn’t the ‘lease agreement’ - which I am in the car business, and it is! Something not right going on with this…