Lease Residual's Decrease tomorrow??? Any word

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Jul 5, 2006 | 11:50 AM

pdxaudi3.2

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Lease Residual's Decrease tomorrow??? Any word

I am looking into a lease of an A6 S-line, I have been dragging my feet on this, I just spoke to the dealer to set up an appointment for this weekend to finalize, however he is telling me the residual's could drop up to 3% points. Anyone know anything?

thanks
Dave

Jul 5, 2006 | 11:52 AM

April

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They always drop through the model year. The closer to a new model year

the more they drop. How much they drop, is something that is never released in advance.

Jul 5, 2006 | 12:11 PM

pdxaudi3.2

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Is a 3% drop in one month realistic? At this point better to wait for an 07?

thanks

Jul 5, 2006 | 02:32 PM

April

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Yes, it can drop that much. Is it better to wait? It depends.

The money factor usually falls to offset the lower residual, so payments are usually pretty good. You're more likely to encounter a promotional money factor near model year end.

Dealers are less likely to discount the '07s for a while - especially if you're after a hot combo. Also, since the residuals are good near the start of the model year, the money factor is nothing special.

However, if for any reason you think you might want out of the lease early, get the newer ('07) car. Yeah, the amount owed will be high thanks to that higher residual, but the car itself is worth more as a result. If you think you might want to buy the car at the end of the lease, you want the low residual and low money factor.

So in the end, weigh your priorities. There is no single right answer. Pick the car you will be happiest with.