Puzz1

Just received the following lease quote on a new A8. Premium, cold, warm, driver assistance, 20 inch wheels:

MSRP:$88175.00
Sale: $81,684.00
Loyalty $4000.00
Sale - loyalty: $77,684.00
Residual 49%= $43205.75

36mo/10k with $2925 out of pocket is $1039 per month

Sounds like a pretty good deal on the surface but would appreciate opinions. My alternative is go find a used one for $66 or $67K and own it but I'm out a big slug all at once - versus a slower leak!

derfA8L

On its face, it sounds good, certainly the sale price is good, but---What is in the "out of pocket" upfront? Are you rolling sales tax into the lease? Other than any required 1st payment+security payments, you really should avoid cap cost reduction upfront payments on a lease.

ltooz_a6_a8_q7

-The advantage of leasing a new car with AFS is the lease rate is normally low. I leased my Q7 in 08 because the lease rate is practically none (The "Stupid" Lease - AudiAudi). I haven't calculated the lease based on your numbers yet.
-You can choose a car with the options you want.
-You have 4 years/50k miles maintenance free = 0 expense during the lease.
-You can return if you don't like that car after 3 years and go into the new 2018.
-You only pay tax on what you use not the whole thing if you returned the car or the car got stolen or totaled. The best thing is even if the car's been in an accident, they're required to take it back after the lease (as my understanding) and you don't worry about selling the car at a loss. Lease has gap insurance - the car is paid off when totaled.
-You can finance the rest of the car with AFS after the lease ends with very competitive rate.
-Buying used car, interest rate will be higher - The best is to calculate total costs of leasing and buying.
-Buying vs Leasing:
Buy: $67000 + tax 8.25% @ 1.99% x 72 months with $3000 down = $1040 x 72 months = $74880 total after 6 years. own free and clear, but after 3 years you still own $34,498 if you decide to pay it off.
Lease: $3000 + ($1039+8.25% tax) x35 months = $42489 + $43205 (need to be refinanced if keeping the car).

It looks deceiving when you buy a lower price car and finance it for 6 years at low rate 1.99 % and still owe 35k after 3 years because interest collected massively in the first 3 years.

You lease a $78k price vs buying a $67 price used car - at the end of 3 years - the difference is still the same. Which means the interest rate on this lease is about 2% also.

Would I rather pay the same payment - worry free on a brand new car with options that I want or drive an older car with compromised options?

It's up to you to figure out. Thanks for posting the deal, I'm sure I'll get the same deal since I've been with AFS for many years. I'll reconsider buying a near new used A8L since this type of deals really makes sense.

Cheers and good luck with your decision,

Louis

Puzz1

No cap cost. Just inception fees of approx $2900 which includes the first payment. The payments also include sales tax.

derfA8L

Your deal looks pretty good...Audi Financial had a darn good program out back in November and December that eliminated the 1st month's payment, a shame you missed that. But it looks like you negotiated a nice deal to optimize your lease's monthly. What color combo are you looking at?