Hi. I’m still pretty new to the forum. Such a great resource already! I’m trying to do some homework and preliminary shopping around for a possible lease on an Audi A4.
This would be my second lease. However, honestly on the first lease I did no homework and had very little preparation. That lease on a 2015 Hyundai Sonata will end around the end of the year.
Today I test drove an Audi A4 and was given some numbers on a Premium Plus trim with Navigation and Cold Package. I was surprised when the guy got really squirely when I asked him the residual rate, money factor and what he could shave off the MSRP. He was giving me what I consider to be gibberish non answers like “whatever they tell me” and “I don’t know that until I know I’m selling a car.” Just when I was getting ready to stand and exit he ran to, I guess the manager(?) and came back with this:
Vehicle Price (Msrp) $44270
10,000 miles @ 36 mos w/$2,000 down = $741.84. @ 42 mos = 685.33
$3,000 down $711.87 @ 36 mos. $659.64 @ 42 mos (however as I understand from posts on this site and others, down payments are not recommended)
36 mos residual =$23,905.80
42 mos residual =$22,135
MF .00140
He sort of mumbled he could do " up to 6%" off the MSRP.
I realized afterwards that he gave me info for 10,000 miles even though I asked for $12,000.
Gee, let’s see. I did in fact ask so I suppose your response in the form of a question was either intended to be sarcastic or rethorical. I’m open to any constructive feedback.
There’s a rule on LH called the 1% rule. Basically the monthly should be less than 1% of the MSRP along with no down. The A4 you mentioned doesn’t get anywhere near this rule. In fact, to be an excellent deal, a sedan should be 0.7-0.8%. You should do some basic homework. You’d find out the Audis do not lose well.
Rene, the rule of thumb is that a lease payment, inclusive of tax, should never exceed 1% of MSRP. In this case, payment would need to be $444 or less for it to be considered a reasonable deal. In reality, many of us prefer even stronger deals, 0.5-0.9% of MSRP. Audis do not lease well and you will have trouble meeting this standard without substantial discounts. You could lease a comparable Mercedes C300 for approximately $350. Whether the extra $400 per month is worth it for an A4 is a personal decision, but my guess is you would rather have 2 C300s for an A4.
As others have echoed, terrible deal. Audis don’t lease well as a general proposition. Dealers don’t discount them much and combined with a lousy residual value and high money factor, that results in poor lease deals. If you are looking for a similar type vehicle, I would suggest you look at the Infiniti Q50, MB C300, BMW 3 series, Jaguar XE, and I’m sure others will suggest more that lease much cheaper and have a MSRP as much or more than that Audi. Not sure where you reside, but you might also look into using a broker as well.
Thank you. Your response is very specific and helpful. Believe it or not, I consider the information I am gleaning from this site to be a part of the homework. I appreciate your response.
Jason, thank you for the very clear explanation of the 1% rule. It is helpful. Also appreciate the suggestion regarding other cars in the class that tend to offer better lease deals. Much appreciated.
Grandmaster thank you for taking the time to respond and offer alternatives. Your suggestions are well taken. Looks like I have more test drives in my future.
Thanks everyone for the feedback and suggestions. Seems clear I will have to re-think my plan and I have more homework to do I really like the Audi but I’m not going to pay more than it’s worth. Too bad it is the brand that is not very motivated on leasing. Thankfully I’m not in a rush. I’ll cross my fingers. Maybe in the Fall they will be trying harder to make deals to get rid of the 2017’s. Again, appreciate the constructive responses. This site is a great resource.
[quote=“Jason_B, post:5, topic:13403”]
comparable Mercedes
I don’t think E300 is currently leasing at 450 to 500 including tax.
MB E class is horrible because of drop in RV.
Jonathan probably between $400-$450. I have some flexibility. Could go a bit higher if it was exactly the car I want with the specific bells and whistles I want. One thing that made the Audi attractive is many of the things I want come standard. I like the BMW 3 series (though I haven’t test driven one yet). I’d also prefer a 4 cylinder so I’m on the fence about some of the other cars in the class.
I really like the Audi but I’m not going to pay more than it’s worth. Too bad it is the brand that is not very motivated on leasing. Thankfully I’m not in a rush. I’ll cross my fingers. Maybe in the Fall they will be trying harder to make deals to get rid of the 2017’s. Again, appreciate the constructive responses. This site is a great resource.