[Biturbos4] lease

Michael Benno mbenno at yahoo.com
Tue Nov 23 12:35:35 EST 2004

I leased a 2001 S4 Avant new and was very happy. 

I was a returning lessee from my A4 avant, so I was given special terms, no money down and one month free. Of course the payment was higher given that no money was put down. 

The way leases work is the more you put down the less you pay in payments. The down payment is the present value of the difference between the payments for 0 down and something down. Consider it prepaid depreciation. It all has the same time value of money. Leasers would prefer to have money down because it helps 1) offset risk, 2) gives gash in hand to reinvest, 3) offers consumers and option to have a lower reoccurring payment. The thing you need to keep in mind is that there is no real deal, all the different payment options and durations all have the same effect, which is the lease is the cost of the depreciation on the asset over the time period. The buyout is generally the market value of the car plus a reconditioning fee (roughly 1800). Generally in a lease your buyout in the early stages will exceed the sellable price. After about 2 years you generally owe less than you can sell it. 

However, I was very happy with the maintenance package, essentially I paid for nothing except for gas and snow tires.
Mike Benno
a6 2.7t
daniel chisholm <dbc112 at yahoo.com> wrote:
Anyone out there leasing the new S4? Was wondering what kind of deal you received... 

I have seen anywhere from 39 months 0 down 15k per year at 699 to 750... 


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