Lease on S3, good deal?

[seanentrust]

ok so i've been trying to justify an s3, I do love my a6 but wanting something smaller, sportier and with a warranty. Im looking to lease because I'm looking to buy a house in the near future and working to rebuild my credit so I can't have a huge loan on my credit and a lease will show a smaller payment and smaller loan amount. Ok so heres the deal with the lease

sticker price $49,525
rebate $1,750
discount $3,972

purchase price $43,803
residual $27,734

7,500 miles a year, which i will destroy but planning on buying the lease out after a year or so

thoughts?

[Audi_Salesman]

Do it I leased a S3 a little over a month ago and love it. I came from a larger sedan I love the size of the S3 and I just Sold one to a customer last night. They're great cars


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[ChrisF1]

Payment?
Number of years?
Money factor?
Total down?

[seanentrust]

Payment?
Number of years?
Money factor?
Total down?

$1500 down payment $521 36 months $516 42 months

[redwing497]

I think you can do better with the selling price, especially with the rebate. When I leased mine, the MSRP was right around what yours is. I think 49,250. My selling price, with no rebates was 43,200. I'm not saying it's a bad deal, I'm just saying there's still room for negotiation

[1S32K16]

I just got this lease 7/1

Sticker: $49k and change car has tech package, black optic and a few dumb trunk items
Discounted price: $44,592
Lease payment with tax :$499.01
36 month lease 10k per year total drive off from my pocket around $1720 including first month, dmv and other small fees plus I did the audicare for $849 so total drive off was $2650 with the audicare out the door

I got the incentive from switching from a Mercedes.

[seanentrust]

I just got this lease 7/1

Sticker: $49k and change car has tech package, black optic and a few dumb trunk items
Discounted price: $44,592
Lease payment with tax :$499.01
36 month lease 10k per year total drive off from my pocket around $1720 including first month, dmv and other small lfees plus I did the audicare for $849 so total drive off was $2650 with the audicare out the door

I got the incentive from switching from a Mercedes.

Damn that's crazy! What was th residual?

[diztek]

the deals im seeing are comparable to others ive seen. i would have figured the deals might better at this time as the 2017s are coming in soon.

[seanentrust]

Do it I leased a S3 a little over a month ago and love it. I came from a larger sedan I love the size of the S3 and I just Sold one to a customer last night. They're great cars


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The issue in my trade in. I have a 2010 a6. I owe $19k and high blue book is about $16k for trade. So just trying to see what I can get them to do for me with that.

[Audi_Salesman]

Do you have a Carmax near you they give pretty good pricing on pre-owned cars. If not see what the dealer can do. We've done some pretty crazy things at the end of the month


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[seanentrust]

Do you have a Carmax near you they give pretty good pricing on pre-owned cars. If not see what the dealer can do. We've done some pretty crazy things at the end of the month


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They are only giving me $14k for my trade and I owe $19k so I'm not willing to take it in the rear that bad.

[SoCal S3]

ok so i've been trying to justify an s3, I do love my a6 but wanting something smaller, sportier and with a warranty. Im looking to lease because I'm looking to buy a house in the near future and working to rebuild my credit so I can't have a huge loan on my credit and a lease will show a smaller payment and smaller loan amount. Ok so heres the deal with the lease

sticker price $49,525
rebate $1,750
discount $3,972

purchase price $43,803
residual $27,734

7,500 miles a year, which i will destroy but planning on buying the lease out after a year or so

thoughts?

You should be able to negotiate AT LEAST 10K miles a year and you can ask for the 15K service too.

[seanentrust]

So he's come down to $612 a month with $0 down with my trade in and $562 a month with $2000 down. I really want to be no more than $550 with as little down as possible.

Is the residual of $27k on a purchase price of $44k good or bad?

Thoughts?

[Michigan_Rings]

So he's come down to $612 a month with $0 down with my trade in and $562 a month with $2000 down. I really want to be no more than $550 with as little down as possible.

Is the residual of $27k on a purchase price of $44k good or bad?

Thoughts?

I always use this site to check Residuals and the Money Factor..... http://forums.edmunds.com/discussion...e-questions/p8

They respond pretty quick.

[PsiBlast]

What is your money factor? Do you know about multiple security deposits? I believe Audi allows up to 9. That will bring your money factor down.

[forbiddenbeat]

What is your money factor? Do you know about multiple security deposits? I believe Audi allows up to 9. That will bring your money factor down.

IIRC, MSD on Audis isn't nearly as helpful as it is on BMWs. I was going to do that, but the finance guy did the math and talked me out of it.

[seanentrust]

What is your money factor? Do you know about multiple security deposits? I believe Audi allows up to 9. That will bring your money factor down.

I'm not sure. I'm not sure really want that means or how to figure it out.

[sjh13]

Here's what I got in SoCal.. you can do better, keep negotiating.

Sepang Blue - Premium Plus
LED Package
Bang & Olufsen Package
Tech Package
Black Optic Package
Red Brake Calipers
Homelink
MSRP Sticker was ~ $52,000+

3 Year / 15,000 miles
$1,000 down
$530/month INCL taxes

Did Audi Care so walked out with $1,850 up front

[Workflow]

I'm not sure. I'm not sure really want that means or how to figure it out.

You need to ask the dealer for the money factor. It's set by Audi and subject to your credit score so not much negotiating there. Also, MSD (multiple security deposits) are a great way to lower payments that you get back at the end of contract, however not sure if Audi offers MSD's (BMW does). I would shop other dealers and have them compete for your business. Try and keep shopping but ask any dealer you're working with to supply you details on the deal to include price, money factor, residual, etc.

[seanentrust]

You need to ask the dealer for the money factor. It's set by Audi and subject to your credit score so not much negotiating there. Also, MSD (multiple security deposits) are a great way to lower payments that you get back at the end of contract, however not sure if Audi offers MSD's (BMW does). I would shop other dealers and have them compete for your business. Try and keep shopping but ask any dealer you're working with to supply you details on the deal to include price, money factor, residual, etc.

So after looking at the numbers without knowing the money factor it seems the residual is just too high. $44k sale price and $27k residual is about 60%. Seems I need to be 55% or less to be a good deal?

[sjh13]

Audi residual is always at 55%. Corporate sets this rate. You will see Lexus and other brands at higher residuals (~60% etc).

[seanentrust]

Audi residual is always at 55%. Corporate sets this rate. You will see Lexus and other brands at higher residuals (~60% etc).

So how do I end up with 60%?

Price of $43,800 and residual of $27,700

[Dethsupp0rt]

So how do I end up with 60%?

Price of $43,800 and residual of $27,700

Residual value is based on MSRP, so yours is 56%.

Seems I need to be 55% or less to be a good deal?

Absolutely not. It's the opposite. Higher residuals mean you'll pay less for the privilege of driving the car for the term of the lease.

However, if you plan on buying it out after a year or so, it really doesn't matter. The main thing is the purchase price of the car.

[seanentrust]

Residual value is based on MSRP, so yours is 56%.



Absolutely not. It's the opposite. Higher residuals mean you'll pay less for the privilege of driving the car for the term of the lease.

However, if you plan on buying it out after a year or so, it really doesn't matter. The main thing is the purchase price of the car.

Ok makes sense. So he hit me with their final offer and it's close but still a tad more than I want to spend. They are at $562 a month with my trade and $2000 down or $612 a month with $0 down. Ideally I would want $550 with $0 down but don't think I can push them anymore.

[ChrisF1]

Why are you only working with one dealer? You should be working with several. That "final offer" is bullshit.

[seanentrust]

Why are you only working with one dealer? You should be working with several. That "final offer" is bullshit.

out of the 5 audi dealers between portland and seattle there is only s3 with S sport seats :( that's why

[ChrisF1]

I live in the Bay Area and purchased mine in Newport Beach. Saved $6k. Widen your search to save $$

[seanentrust]

I live in the Bay Area and purchased mine in Newport Beach. Saved $6k. Widen your search to save $$

I've been searching the entire west coast and haven't found another one optioned the way I want.

[seanentrust]

I think i'm gonna hit him with my final offer. I feel like I could get it for $500 a month with $0 down if I didn't have a trade in. So I'm willing to pay an extra $50 a month to not stress about the 90K and oil consumption issues on my a6.

[LINDW4LL]

I think i'm gonna hit him with my final offer. I feel like I could get it for $500 a month with $0 down if I didn't have a trade in. So I'm willing to pay an extra $50 a month to not stress about the 90K and oil consumption issues on my a6.

I'm confused. Why would you pay less without a trade-in? Are you upside down on the A6?

What's the money factor on the lease?

[seanentrust]

I'm confused. Why would you pay less without a trade-in? Are you upside down on the A6?

What's the money factor on the lease?

Yes I owe $19k and they are trying to give me $14k. Blue book trade in is $15.5-16.5k

[vwblackb5]

OP, I would say not a good deal. Your sticker price $49,525 less discount (3972) comes to 45,553 or 8% off MSRP which is not good enough IMHO. Plan to negotiate discount from cap cost at around 12-15% off the inflated MSRP before applying any rebates. It seems your residual is at 56%, which is odd since your mileage at 7500/yr @ 36months, should yield a better residual than let's say 10k/12k/15k/yr.

Also, if you have bad credit, you will get the highest MF or interest rate which will affect your total calculation. Don't fall into the monthly payment trap. Try to negotiate as much off the MSRP. Lastly, when leasing it's never wise to put a down payment. Only pay the upfront cost i.e 1st months payment, doc fee, reg, title etc.

[seanentrust]

OP, I would say not a good deal. Your sticker price $49,525 less discount (3972) comes to 45,553 or 8% off MSRP which is not good enough IMHO. Plan to negotiate discount from cap cost at around 12-15% off the inflated MSRP before applying any rebates. It seems your residual is at 56%, which is odd since your mileage at 7500/yr @ 36months, should yield a better residual than let's say 10k/12k/15k/yr.

Also, if you have bad credit, you will get the highest MF or interest rate which will affect your total calculation. Don't fall into the monthly payment trap. Try to negotiate as much off the MSRP. Lastly, when leasing it's never wise to put a down payment. Only pay the upfront cost i.e 1st months payment, doc fee, reg, title etc.

yeah I agree I will not put any money down, the sticker is $49,500 but hes giving it to me for $43,800 which I felt was a good deal?

[gamegenie]

a lease is alright, it's easy to get, a pain to get out of.

I'm surprised you all who recently got 'em didn't wait till the fall for when the new facelift A3/S3 arrives.

[turbologist]

OP, I would say not a good deal. Your sticker price $49,525 less discount (3972) comes to 45,553 or 8% off MSRP which is not good enough IMHO. Plan to negotiate discount from cap cost at around 12-15% off the inflated MSRP before applying any rebates. It seems your residual is at 56%, which is odd since your mileage at 7500/yr @ 36months, should yield a better residual than let's say 10k/12k/15k/yr.

Also, if you have bad credit, you will get the highest MF or interest rate which will affect your total calculation. Don't fall into the monthly payment trap. Try to negotiate as much off the MSRP. Lastly, when leasing it's never wise to put a down payment. Only pay the upfront cost i.e 1st months payment, doc fee, reg, title etc.

12 - 15% off MSRP prior to incentives??

Never thought that was possible. Are people getting these numbers? Im in the market for a 17 S3 and at those numbers its a no brainer...

[Audi_Salesman]

In most cases the dealer isn't going to give you 12%-15% plus rebates unless it's a old age unit. I got 15% off plus rebates and I'm a employee. If you want I can give you the residual value on Monday. The markup 6% and they have about another 3% or so to work with so a total of 9 or 10% to work with. If you think it's a good deal that's all that matters. When the RS3 comes out I'm going to get out of my S3 lease and jump into that.


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[plasticmoz]

I did, and I know a number of others did recently too. There are a ton of 16s on lots right now and they are highly incentivized to move them.

I got ~15% off MSRP (includes rebates) and 0% financing through Audi (purchased June). This was a Prestige S3 with everything except Sports Seats. After finding out the 17s wouldn't be getting the power upgrades from EU it was a no brainer to go with a 16 at this price. This all implies you can find one on a lot you want and the dealer is incentivized to move it.

[turbologist]

In most cases the dealer isn't going to give you 12%-15% plus rebates unless it's a old age unit. I got 15% off plus rebates and I'm a employee. If you want I can give you the residual value on Monday. The markup 6% and they have about another 3% or so to work with so a total of 9 or 10% to work with. If you think it's a good deal that's all that matters. When the RS3 comes out I'm going to get out of my S3 lease and jump into that.


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That would be helpful and if you can get me to that ~15% + rebates on a 17 P+, that would be a price I'd be content with...

Appreciate the help.


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[turbologist]

I did, and I know a number of others did recently too. There are a ton of 16s on lots right now and they are highly incentivized to move them.

I got ~15% off MSRP (includes rebates) and 0% financing through Audi (purchased June). This was a Prestige S3 with everything except Sports Seats. After finding out the 17s wouldn't be getting the power upgrades from EU it was a no brainer to go with a 16 at this price. This all implies you can find one on a lot you want and the dealer is incentivized to move it.

Nice.

Wonder if that percentage plus incentives would work for a '17...


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[plasticmoz]

Nice.

Wonder if that percentage plus incentives would work for a '17...


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I would go out on a limb and say .. no chance. If you can get 6-8% off a 17' order you'd be doing quite well I imagine.

The only reason those numbers are so good are that they need to move the 16s off lots...