[Big Block Mopar]

Bryan,

Your thread title questions Audi's pricing, but your message questioned their lease rates. Audi's pricing is in-line with BMW and in some cases better when comparing equally equipped/performing cars. The real issue is (as your message states) is that Audi's lease deals are no where near as attractive as BMW's. There is no question they are not.

With that, many think Audi's rates are much more in-line with the market than BMW's are. As a matter of fact, I bet BMW believes this as well. The word I got was that BMW wrote off several hundred million dollars worth of loses due to subvented lease rates. Now please know that I am not "in the business". I'm just a working class car guy who likes to get the car that I most crave for as little as possible. With that, it is not healthy for a company to have a strategy where they try to place everyone in a $40k car for $500/mo. In order to do that they either have to use unrealistic residuals or give cheap financing (MF), BMW chose the former. The long term math simply doesn't work out (see above writeoff). They have also since adjusted their rates slightly (earlier this year). Audi's rates used to be better, not as good as BMW, but better than they are right now. This happened around Aug-Sept '08.

For example, the residual on my wife's '07 X3 is 65%. That is absolutely ridiculous and no where in-line with the market. Her $45k X3 is right now worth about $26k and will be worth about 15% less by turn in. THey will probably offer it to the dealership at auction price. Contrast that with my '09 TT's residual of 51%. I got the car for less than invoice and the MF was low, so it worked out for me.

Leasing is still great for the person who like a new car every few years and understands leasing. The market has definitely changed and the old "if you can't afford it, you can afford it" comment now applies as it did prior to a few years ago.

My advice would be to either buy and finance a new B8 (Audi platform speak, like E90/92) A4 or look for a "lightly loved" one. You should also look at the new S4. It's a sweet package. Personally, if I were in the market, I would look at a preowned E90/92 M3. It looks like there are some great deals on those cars right now.

Regards,
John