chadman RS4

So I was up at the local dealership today and they have a Daytona Grey RS4 coming in early July. The deal I negotiated is:

1) $1500 off MSRP + Audi Service Package for free
2) They will buy me out of current lease of my 06 B7 S4 for $40,500. The residual on the car is $39,000. The advantage of them buying me out of my current lease is the $40,500 will be treated as a trade in on the RS4 and that is tax free.

I feel this is a fair deal and think i'm going to pull the trigger since I've always known my next car will be the RS4 and with rumors that production is stopping soon. Any feedback is much appreciated.

ny bruin

That's the e-mail I got yesterday. I wish they gave it to me a year ago!
This seems to be an AOA free be. So I wouldn't factor in the service agreement into your price.

RS4SPKS

looks like a fair deal. I'd go for it.

McGyver

Is the $1,500 off MSRP due entirely to the residual vs. buyout on the s4 or is this incremental (i.e., $3k savings)?

chadman RS4

It's incremental...so a total of 3k

sparkhill

Dealers will become motivated to move their inventories over the next couple months to avoid getting stuck with "last years" cars. Considering the lease buy-out and tax savings, I would take the deal.

gk1

Since $39,000 has to go to paying out the lease which you only payed tax on thee payments for one year. Unless you made special arrangements and paid all the tax up front?

I understand it's a different story if you buy/finance the car and then trade it in, but I didn't think it worked that way on a lease also.

I'm not trying to be a smartass I truly want to understand. If they put that all in writing then it sure does sound like a good deal.

pistolgrip

my leased 2004 B6S4 from the price of my RS4 to determine the sales tax owed. My lease on the B6 S4 had all the taxes rolled into it, and I purchased the RS4.

chadman RS4

that since they are purchasing the car from me the entire value of the trade in will be treated as tax free.

sparkhill

I think the lease buy-out quotes frequently have sales tax figured in since you are technically buying the car and most states require sales tax to be collected. So, say the buy-out in $40K and the car you are buying is $70K. Well, you pay the tax on the $30K difference but you have also been required to pay tax on the lease buy-out you purchased.

Perhaps if the dealer buys-it-out for you, you are be able to avoid the tax on the car you would normally "purchase" and then trade-in since the dealer is treated differently.

It would be interesting to hear from somebody who knows for sure.