I am looking at trading in my 2004 2.7T allroad (36K miles - I know I drive ALOT) for a 2005 S4 (B6) and am considering a lease. The dealer has offered $599/month with $3000 due at signing and a payoff of the allroad. Having never leased a vehicle before, I need help in deciding if this is a good lease or not. Anyone?

 

How many miles/yr for the lease deal? Also, so you plan on driving as much as you have in the past? If so, you will get killed on the $0.25/mile over-mileage fee at lease end. May want to find a low mileage CPO 04 (maybe even 05) S4. Good luck.

 

on how much you owe on your Allroad vs. trade-in allowance. Check out this link to determine approximate trade-in value.<ul><li><a href="http://www.kbb.com">Kelly Blue Book Linky</a></li></ul>

 

Of the deal from him so you can compare it an possibly get a better deal.

-Price of car (out the door price)
-Your trade in value (including the tax you have to pay since you 'sold' your car to them)
-What they say your residual will be on the B6S4 at the end of the lease.
-Any and all Inception and Disposition fees (pickup and return fees where you they sometimes throw in some cash to make their numbers look better)
-Money Factor: This is where you get hosed sometimes if you're not looking. The money factor is essentially the interest rate you pay on the difference b/w the purchase price and the residual price plus all the fees. You want a low money factor, low fees and a high residual so you pay less interest on a smaller amount of money.
-How the money factor is determined is pretty simple but they don't tell you this so that the can hide a sh*tty rate from you. A money factor of .00165 would equate to an interest rate of 3.96% You multiply the money factor by 2400 -&gt; 3.96% My Audi dealer was initially quoting me a money factor of .00365... do the math interest rates of close to 9% are crack induced (yet some people pay them because 'the payment looked good')
-Make sure there is gap insurance. To illustrate: if your car get's totalled the day after you buy it your insurance will pay the amount for a total loss on the car. If the amount of a total loss on the car does not equal enough to pay off the lease you have to cough that amount up (which would blow) so gap insurance covers 'the gap' &lt;If I'm not presenting this part accurately someone correct me please&gt;
When you have all that go to the link below for LeaseCompare.com to throw your numbers in and see how the dealer stacks up. LeaseCompare has a bunch of great information to study up and it definitely saved me a chunk of cash on my lease.

If what Blue TTop said is accurate for you (meaning 1.3%) that would be pretty damn good.

Also, if you or a member of your family are in the Navy, Navy Federal Credit Union is where I got my lease and it was handled very quickly with great service and follow up.<ul><li><a href="http://leasecompare.com/">Lease Compare Link</a></li></ul>

 

Thanks for everyones help so far. I love driving this car and am sooooo tempted to go for it, but the lease particulars are holding me up.

Here are some details on the deal:
S4 Sticker: ~51,000
S4 out the door Price: $49,900
allroad trade: $27,973
S4 residual: ~$27,010
Inception fee: $575
Leese end fee: $350
Milleage: 10K/year
Milleage Penalty: 0.25/mile
Money factor: unknown at this point but the lease is the one audi is promoting right now as mentioned by TTop

I looked at the link, and everything I checked gives a worse deal than the one at Audi. Right now my biggest complaint is that they are only giving me what I owe on my allroad. I did some checking at Kelly Blue Book and Edmunds and found that my trade should be worth between $29500 (KBB) and $34470 (Edmunds).

Another minor (or not so minor) worry is the milleage limit. I do drive a lot, don't know if it will be as much as the allroad though. My thought was that I would either sell or buy the S4 as the lease nears it's end. Having never leased however, I don't know how difficult this would be....

 

He should be able to negotiate a .00055 money factor with nothing down. These dealers need to move the '05's (and any 04's they have left). Many have a number of S4s in inventory and there are more at the ports. I just negotiated a .00055 money factor on an '05 S4, nothing down, sale price at invoice, for a 36 month/15K miles lease. Of course I really did not need the car and was willing to completely walk away if I did not get the deal I wanted.

One dealer also offered me an '04 model at $4K under invoice. But they would not lease it with the above terms.

 

Second about the mileage, you can sell the S4 prior to lease end. You are on the hook for the residual value to AFS and you can walk away. But selling a high mileage car may prove difficult even if you have all the service done "by the book".

Another option may be the "preferred purchase" which is a purchase with a balloon payment at the end. It has the same characteristics as a lease except you are buying the car, which would make it easier to sell at the end (no title changes, etc)because you hold the title.

 

I had to put more money in the lease because I am doing 15k a year, because of my drive to work.

I actually put 2k down and got my payments to $660 with 15k a year, that is including take in Nevada, so it may be more or less.

I will put it perspective for you, three years ago I lease a A4 3.0, put 4k down and still have a $500 a month payment at 12k a year. The time to lease is now.

 

Just picked mine up tonight and they gave me what i thought was a good deal.
04 S4
$0 down
12k miles/yr
$512.00/month
39 month
$27,451.00 buy out
or $350.00 turn in
MSRP was $48940.00
I feel good about the deal and even better driving this car.

 

yours by $4K. Wholesale on your car is 33K according to Manheim so their is still some room to move.