Poor residuals on 2008 A8L lease
Thread Starter
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Poor residuals on 2008 A8L lease
I'm saying goodbye to my 2004 A8L - best car I've ever owned, very sorry to see it go - and considering replacing with 2008 A8L.
I was shocked to see new residuals on the '08 (32%/48m, 36%42m, 38%39m, 41%36m) from AFS.
Residual on my 04 48m lease is 53% (all are 12k/yr leases)
YIKES!
Trying to figure out why the steep decline in residuals for this model year.
Perhaps new model in 2010 is a factor as unloading 'old' models may be harder after that? In any case, a 33% increase in monthly payments (assuming '04 money factor, even though '08 money factor is a bit higher) to cover an 8% increase in MSRP of basically the same car seems *really* harsh.
Bottom line, I may be giving up the A8L as a replacement if that's the best they can do.
I checked around with a couple of lending sources and AFS had best terms for the most part, if you can consider such poor residuals 'best'.
This following a recent article based on Kelly Blue Book listing Audi's in top 10 for residual value (overall brand at 42.6% after FIVE years)
http://www.prnewswire.com/cgi-bin/stories.pl?ACCT=104&STORY=/www/story/11-14-2007/0004704889&EDATE=
I was shocked to see new residuals on the '08 (32%/48m, 36%42m, 38%39m, 41%36m) from AFS.
Residual on my 04 48m lease is 53% (all are 12k/yr leases)
YIKES!
Trying to figure out why the steep decline in residuals for this model year.
Perhaps new model in 2010 is a factor as unloading 'old' models may be harder after that? In any case, a 33% increase in monthly payments (assuming '04 money factor, even though '08 money factor is a bit higher) to cover an 8% increase in MSRP of basically the same car seems *really* harsh.
Bottom line, I may be giving up the A8L as a replacement if that's the best they can do.
I checked around with a couple of lending sources and AFS had best terms for the most part, if you can consider such poor residuals 'best'.
This following a recent article based on Kelly Blue Book listing Audi's in top 10 for residual value (overall brand at 42.6% after FIVE years)
http://www.prnewswire.com/cgi-bin/stories.pl?ACCT=104&STORY=/www/story/11-14-2007/0004704889&EDATE=
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Resids are somewhat offset by favorable money factor which is half that of competing marques.
Audi has decided to no longer subsidize it's leases, and to let the market dictate its residuals for now.
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BUT -- it makes buying an off lease car that much better
IF i may suggest, why not buy your current A8 if you like it so much!?!?
poor residual #`s have long been an Audi problem. So why not let someone else shoulder the early devaluation and benefit from the lower cost after a short lease. The beauty of buying your own car is there is no uncertainty to the original history of the car. You lived it.
Also -- my pet peave -- it breaks the constant "gotta get a new car every three years" syndrome that continually puts new iron on our roads with very little if any recycling of the original vehicle. If everyone kept their cars longer, the environmental burden of automobiles would greatly decrease. See the "Dust Report"...
just a thought
poor residual #`s have long been an Audi problem. So why not let someone else shoulder the early devaluation and benefit from the lower cost after a short lease. The beauty of buying your own car is there is no uncertainty to the original history of the car. You lived it.
Also -- my pet peave -- it breaks the constant "gotta get a new car every three years" syndrome that continually puts new iron on our roads with very little if any recycling of the original vehicle. If everyone kept their cars longer, the environmental burden of automobiles would greatly decrease. See the "Dust Report"...
just a thought
Thread Starter
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Re: BUT -- it makes buying an off lease car that much better
I've wrestled with the notion of keeping the 04. I've never had a problem with it and it runs like a top. There is nothing about the '08 that I really like better. A few minor things like bluetooth and ipod are small pluses, but the basking shark front grille and stock wheels are definite minues.
In general I like leasing to stay under mfgr. warranty (Audi servicing off warranty is nuts) and because I like a new car every few years. I'll be first to admit that it is not the most cost effective way to own a car.
Still, if I were going to purchase off lease, I'd do it if I go for the new car with a 33% residual rather than with the current car at a 53% residual.
My real question is what changed to drop the residual 20% on basically the same car
In general I like leasing to stay under mfgr. warranty (Audi servicing off warranty is nuts) and because I like a new car every few years. I'll be first to admit that it is not the most cost effective way to own a car.
Still, if I were going to purchase off lease, I'd do it if I go for the new car with a 33% residual rather than with the current car at a 53% residual.
My real question is what changed to drop the residual 20% on basically the same car
Thread Starter
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Not in this case
If I look at residuals on some place like Edumnds for the '04 A8L they are around 49% (a bit high as this is estimated cost from dealer). Still, it seems 33% would be a bit low on the expectation side for an '08 A8L. Maybe Audi is frowning on leases or expecting 18mpg to be dead weight in 2011?
MF on 48 months is 44% HIGHER and residual 20% LOWER on the '08 compared to what was around on the 04, so no favorable offsets there.
MF on 48 months is 44% HIGHER and residual 20% LOWER on the '08 compared to what was around on the 04, so no favorable offsets there.
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Joined: Oct 2000
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How 'bout comparing money factors to competing '08 vehicles? Forget what was...
...in '04, it's in the past and doesn't make for a real world comparison on what you'd pay now.
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Re: BUT -- it makes buying an off lease car that much better
If you decide to keep your '04 and buy it back, even though the residual is set real high, you do not have to expect to pay anywhere near that 53%, they do not want these '04's back, believe me. Tell them what you'll pay for it, say like $30K (not sure on this # anymore) and that you want it Certified (CPO'd) at no charge and you'll then have 100K mile warranty.
I did it back in February.
I did it back in February.
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