Need a little help on this financing issue...
#1
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Need a little help on this financing issue...
I get the point about bad residuals raising the lease payment, but I thought the banks determined residuals.
Also, how will it impact the balloon payment program (premium purchase?) My guess is it will also be a lower balloon and a higher monthly. But if the "S" cars continue to hold value, wouldn't that be a good thing at the end of the program, since you have the option to buy, sell, or "put" it back to Audi?
Last question, how do they determine financing rates in the ballon program?
Also, how will it impact the balloon payment program (premium purchase?) My guess is it will also be a lower balloon and a higher monthly. But if the "S" cars continue to hold value, wouldn't that be a good thing at the end of the program, since you have the option to buy, sell, or "put" it back to Audi?
Last question, how do they determine financing rates in the ballon program?
#2
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I agree, low residual can be a good thing too...
When the lease is up, you can buy the car for the residual value, right? So sure, it's too bad you can't get a super-low monthly payment, but if when it's over you can buy the car for $22k, and turn around and sell it for $29k, that's not such a bad thing. Better yet, you can keep it knowing you just "saved $7k" on a great used car, *and* you know it's full history!
So, the real question is, has anyone out there done the *full* math, and determined how far ahead or behind you come out on a lease-buy plan like this? What does it look like?
So, the real question is, has anyone out there done the *full* math, and determined how far ahead or behind you come out on a lease-buy plan like this? What does it look like?
#4
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Answers....
Audi Financial Svcs determines the residuals. Unless, of course, you lease it through someone else, like a credit union.
The purchase option price on the Premier Purchase is usually very close to the lease residual value, if not exactly the same.
The interest rate is probably set by the dealer. Most captive finance companies (like Audi Financial Svcs, Ford Credit, GMAC, etc.) are indirect lenders meaning that they do not loan money directly to the public. The transaction must be handled by the dealer. Since the dealer makes the deal, the dealer also determines the actual interest rate. It's often negotiable.
The purchase option price on the Premier Purchase is usually very close to the lease residual value, if not exactly the same.
The interest rate is probably set by the dealer. Most captive finance companies (like Audi Financial Svcs, Ford Credit, GMAC, etc.) are indirect lenders meaning that they do not loan money directly to the public. The transaction must be handled by the dealer. Since the dealer makes the deal, the dealer also determines the actual interest rate. It's often negotiable.
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