crazed792

Consider leasing like buying except that at the end they buy the car back at a pre-determined amount (the residual percentage). So that they are trying to give you a difference in price one way or the other is really stupid. They are just hoping to make more money off of you, imo. It reminds me of how dealers try to avoid giving you the purchase price and just play with "payments."

Moviela

You should buy the car for about 2500 BELOW INVOICE, and sell your trade yourself.

If your wife has a budget of only 400 a month, perhaps you should be looking for a less expensive car. A guy in LA will sell you TWO Kia's for 14K. You could drive one today, and save the other for later.(just joking)

If you take the bait and lease, your are going to be down about 5000 at the end of the lease. At the the lease end they take the car. All your payments have paid for the use of the car, and a fat profit (the 5000) for the leasing company. If you buy the car, at the end of the three years, you will still in effect have paid for the use of the car through depreciation, but you own the car. If you want to sell it, great, the money that would have ended up in someone elses pocket is in yours!

Don't be let the dealer jack up your trousers and rotate your wallet.

I think I'll take my A4 and enjoy a sundown drive over to Disneyland for fireworks.

allangering

Invoice price is the price a car dealer pays to the manufacturer for each vehicle he buys.The invoice price (lowest price) of the model and the options you want. Options will increase the total cost of the vehicle, so make sure you really want or need the ones you select.

snarf1033

Great Info fellas. I'm going to go back to the dealer and tell him the only way this will work is if he leases the car to me below invoice and I only put 3K down. I think anything over 3K will be to much to put down on a lease. Or I may just go with a Kia LOL.

bluexpress

Snarf,

Don't be afraid to walk away either, I did several times and ended up getting what I think is a great deal at that time. A 2.0T 6MT Prestige with Nav for 38K and Audi care thrown in..

Also make sure the money you put down includes tax, first month's payment and all that jazz, getting Audi Care will also Bump your Residual as well and could potentially lower your payments.

RedlineSi

I wouldn't put any money down if I were you. If you are going to lease, $0 down is the way to go. If you have that much in your trade, finance the car.

Plus, it sounds like the dealer is giving you the run around. I'm about to lease a Premium plus, but I'm not going to pay more than $33,500 on a car with a $38,000 MSRP.

coolnesh

Well, putting money down on a lease just to get a better monthly payment usually is not the best approach.

You might as well put money down and finance the car! But I understand that the monthly payments will shoot up.

Option 1: So the deal is that you have a $5500 trade in, use that only as your downpayment (pay the taxes, fees, etc.)... dont put the $1000 extra towards it... get the $420/month payment.

Option 2: Putting $3K down... this approach will up the monthly payment... if the dealer bites it then you are golden. Try and see how it goes.


keep us informed. good luck.

markcincinnati

The conventional wisdom is to put zero down on a lease. If, for whatever reason, however, you "need" to put money down on the lease, even if it is for "peace of mind" do it.

Remember, however, you may be able to come close to what you want to accomplish if you put down multiple security deposits (which are refundable.)

Moviela

That trick is called a compensating balance at the leasing company. That does not reduce your cost of leasing the car. You still are paying the full freight to hold the keys for a period of time.

What it does do is allow you to paper over a low FICO score and obtain the lease you would not qualify for in the first place at a given money factor. The thinking of the leasing company is that if you can't make the payments, the security deposits will protect them if they need to repop the car.

What is happening today with large securitiy deposits is the inspectors go over the car with a more critical eye because there is a pot of money sitting there to be taken. If you have a smaller security deposit, the clip board does not get as much use.

snarf1033

So I'm off the lease since I have a potential buyer now for my car. With the $ I will be able to put down I think a purchase of the 09 A4 is a better choice.