Outrageous Lease % Rates

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10-08-2011, 08:58 PM

#11

audimontreal

Audi Forum - Posts like an A5

Join Date: Jul 2010

Location: montreal

Posts: 317

Re: Outrageous Lease % Rates

Congrats on your new audi!
Bt the way a4audi4fun is absolutely right... regarding leaving ANY $ especially for a leased car.
I would double check with the Dealership, Insurance company and even call the APA just to be safe god forbid anything happens only to realize that you have lost your hefty deposit!

10-08-2011, 09:43 PM

#12

sakimano

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Join Date: Apr 2008

Location: Oakville

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Re: Outrageous Lease % Rates

Quote:

Originally Posted by Jeanfc

Did that with the Lexus I have now, $5000 security deposit to lower the interest. Getting it back when I return it next month, no clause about accidents. The percentage difference is worth about $200 per payment - well worth it.

Quote:

Originally Posted by Jeanfc

Thanks for the constructive information. Finally ordered a A4 Avant Premium Plus S-line, and got a rate of 3.09% along with winter tires as a bonus. Was able to able bring down the rate from 4.4% by putting in a refundable security deposit of $9000...

With the stock market the way it is, safest bet around lol.

those really do work out, financially. Only problem is if you ever want to get out of the lease, you don't get that money back...it's there till lease end, so you need the 'lease takeover person' to cough that amount up. That's a brutal disadvantage when you're trying to unload a leased car.

Anyway, I'm sure that's not an issue for you as you'll keep your car and love it. Congrats on the new car and the great lease rate. Saving 1% on a $50,000 car 4 yr lease will save you about $1500 over the 4 years. $9,000 invested in a 4 year AA rated bank GIC would get you about a $1000 return (2.35% these days), so your deal is a pretty good one. It works out to more like 3%+.

10-08-2011, 09:45 PM

#13

sakimano

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Re: Outrageous Lease % Rates

Quote:

Originally Posted by a4audi4fun

Audi lease rates are higher than many other brands and folks, including you, are still buying/leasing them so from their side it's a seller's market.

$9000 refundable security deposit - make sure you understand your contract and will get that full amount back, in the event your car unfortunately has an accident and is written off. Conventional wisdom is to never put any significant deposit on a leased vehicle.

My 2c worth.

The security deposit is so you don't run out on a bill. It's not there for Audi to keep for any other reason. They can't arbitrarily keep it in some 'trick' in the contract. Reputational risk of sneaking something like that into a contract would cost them millions, if not billions once it made it to television. They'd never do that.

as for the deposit, he'd get it back if the car was written off (total loss) as his contract would terminate with a mock buyout, paid for by his insurance company (to Audi via him).

10-09-2011, 08:18 AM

#14

Jeanfc

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Re: Outrageous Lease % Rates

Thanks Sakimoto,

That's about all I need to know. Cant wait to get back an Audi. The S-line Avant (red) is ridiculously sexy.

10-11-2011, 08:44 PM

#15

tuno

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Join Date: Oct 2011

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Re: Outrageous Lease % Rates

Quote:

Originally Posted by Jeanfc

Is it me, or are Audi lease rates (3.9% / 4.1%) slightly outrageous? I currently have a Lexus, and the rate for a fully loaded Rx350 is only 2.9%... I checked today and they are still 2.9%

What's the deal on that?

Has anyone been able to get a lower rate on a 48 lease?

The extra precentage points adds a substantial amount to the cost calculations compared to other brands.

Since when 3.9 % is considered outrageus ???? To me outrageous is 18-20%.
Ok maybe it is a bit higher then some other brands, but outrageous?!!!? Come on , back to reality...

10-12-2011, 08:12 AM

#16

Jeanfc

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Re: Outrageous Lease % Rates

Quote:

Originally Posted by tuno

Since when 3.9 % is considered outrageus ???? To me outrageous is 18-20%.
Ok maybe it is a bit higher then some other brands, but outrageous?!!!? Come on , back to reality...

i said slightly outrageous. The rate is actually 4.4% right now,
compare that to 3.1 for a 60k Lexus, and 2.9 for my last Audi and yes i consider
4.4 slightly outrageous. Thank god i can dump 10k on a security
deposit and get 3.09, otherwise i would be considering (maybe)
sometging else.

10-13-2011, 01:01 PM

#17

sakimano

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Join Date: Apr 2008

Location: Oakville

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Re: Outrageous Lease % Rates

again though...you can't 'compare' lease rates as they're more of a reflection of the companygiving an incentive (or dis-incentive) to move cars.

If Audi gave you 2.5 % lease rate, but only $500 off MSRP on a $50,000 A4, would you be happier?

How about a 4% lease rate, but $3500 off MSRP?

Personally I'd take the 4% lease rate car...because I'm good at math.