2019 Audi A6 gets almost $10k Price Hike
#17
Lexus Fanatic
#19
Lexus Fanatic
#20
Lexus Test Driver
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This is more of a fake news story. The A6 will get the four cylinder next year, just like the last model got. Then the price will drop, but few will talk about it at that time because the car's newness will have faded. I rather see Audi be smart and offer it from the start before people write it off as "$10k more expensive." Stories like these mislead the public and the memory sticks longer than they realize.
#22
Lexus Fanatic
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The biggest thing holding Audi back is crappy leases. Its MUCH more expensive to lease an Audi compared to a similar BMW, Mercedes or even a Lexus (Lexus leases aren't great either).
For instance, when shopping a loaded A6, lease payments were similar to an LS vs a GS despite the LS being $25k more.
For instance, when shopping a loaded A6, lease payments were similar to an LS vs a GS despite the LS being $25k more.
#23
Pole Position
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The biggest thing holding Audi back is crappy leases. Its MUCH more expensive to lease an Audi compared to a similar BMW, Mercedes or even a Lexus (Lexus leases aren't great either).
For instance, when shopping a loaded A6, lease payments were similar to an LS vs a GS despite the LS being $25k more.
For instance, when shopping a loaded A6, lease payments were similar to an LS vs a GS despite the LS being $25k more.
#24
Lexus Fanatic
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I am someone who has never leased and don't fully understand the math behind what comprises a good lease deal, so can you explain your theory on why Audi leases would be worse than their peers? Does this mean they factor in higher depreciation, therefore a lower guaranteed trade value, therefore a higher payment?
When you lease you're paying for the difference between the capitalized cost (your negotiated sales price) and the residual (the anticipated value at the end of the lease as a % of the MSRP determined by the finance company) plus a finance charge (the money factor) divided by the term in months.
Audi leases have low residuals and high money factors, with little in terms of rebates. BMW and MB especially have very high residuals, low money factors and big rebates, so their lease payments are considerably less. This puts finance risk on the manufacturer and reduces overall profit, but they do that to be aggressive and drive value. Lexus is less aggressive, but moreso than Audi.
In my experience Audi leases are similar to a 60-72 month finance payment.
Does that make any sense?
#25
Lexus Champion
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The biggest thing holding Audi back is crappy leases. Its MUCH more expensive to lease an Audi compared to a similar BMW, Mercedes or even a Lexus (Lexus leases aren't great either).
For instance, when shopping a loaded A6, lease payments were similar to an LS vs a GS despite the LS being $25k more.
For instance, when shopping a loaded A6, lease payments were similar to an LS vs a GS despite the LS being $25k more.
I have a 2016 A6 which has been a great car. I'll be taking a look at the new gen when it comes out later this year. It looks very good from what I've seen in the early reports.
#26
Lexus Fanatic
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Yeah, it seems like Audi leases have been crappy for quite a while. You'd think that would limit their sales when compared to the leases for BMW, Mercedes etc. Any idea why they wouldn't want their leases to be more competitive?
I have a 2016 A6 which has been a great car. I'll be taking a look at the new gen when it comes out later this year. It looks very good from what I've seen in the early reports.
I have a 2016 A6 which has been a great car. I'll be taking a look at the new gen when it comes out later this year. It looks very good from what I've seen in the early reports.
#27
Pole Position
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Audi leases have low residuals and high money factors, thats why their payments aren't good.
When you lease you're paying for the difference between the capitalized cost (your negotiated sales price) and the residual (the anticipated value at the end of the lease as a % of the MSRP determined by the finance company) plus a finance charge (the money factor) divided by the term in months.
Audi leases have low residuals and high money factors, with little in terms of rebates. BMW and MB especially have very high residuals, low money factors and big rebates, so their lease payments are considerably less. This puts finance risk on the manufacturer and reduces overall profit, but they do that to be aggressive and drive value. Lexus is less aggressive, but moreso than Audi.
In my experience Audi leases are similar to a 60-72 month finance payment.
Does that make any sense?
When you lease you're paying for the difference between the capitalized cost (your negotiated sales price) and the residual (the anticipated value at the end of the lease as a % of the MSRP determined by the finance company) plus a finance charge (the money factor) divided by the term in months.
Audi leases have low residuals and high money factors, with little in terms of rebates. BMW and MB especially have very high residuals, low money factors and big rebates, so their lease payments are considerably less. This puts finance risk on the manufacturer and reduces overall profit, but they do that to be aggressive and drive value. Lexus is less aggressive, but moreso than Audi.
In my experience Audi leases are similar to a 60-72 month finance payment.
Does that make any sense?
#28
Lexus Fanatic
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It’s just a different focus, BMW and Mercedes are subsidizing their leases by offering those high residuals, the benefit is the low lease payments drive their new car sales.
#30
Lexus Test Driver
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Audis had bad depreciation for some time. The poorer lease offerings where a result of them trying to boost resale values. I can see what they were trying to do, but those problems where from the mid to later 2000's. Since then, Audi has upped the quality and reliability of their products considerably. So the worry of poor resale should be fading. Yet, their leases are still lousy. Not sure what they are going for at this point.
At least here in Los Angeles, things are so competitive, the regional Audi A4 lease isn't too much more than a Lexus IS. The 3 series still offers the best value.
At least here in Los Angeles, things are so competitive, the regional Audi A4 lease isn't too much more than a Lexus IS. The 3 series still offers the best value.