Luxury, Sport, Value

Two months ago, I leased a new 2005 Audi A4 1.8T for one of my now almost 18-year-old twin boys. Because of favorable lease terms, I was able to lease the car, with a total of $3,900 out of pocket, for less than $400 a month for 24 months. Because ordinarily my attitude towards leasing is less than favorable, I tried to steer my son towards purchasing perhaps a less expensive vehicle. However, his exact words to me were, "no dad, I get bored too quickly to want to own a car." And he is exactly right, so leasing it was.

A Word About Leasing
Leasing, as probably most of my readers know, is an agreement whereby, in most simple terms, one pays for only the portion of the car that is used. More specifically, a lease contract involves the consumer absorbing the depreciation, plus a finance charge on that amount. At the end of the lease, the vehicle is returned to the leasing company and, provided the vehicle is in reasonably good condition (normal wear and tear excepted), the consumer has no further financial liability. Part of the condition requirements usually stipulate that the car not be driven more than 10-, 12-, or 15,000 miles per year, depending on the contract. Because of the mileage restrictions, leasing is a poor option for many consumers, but for others who, like my son, do not drive more than average and get bored easily, leasing is a good option.

Anyway, at the present, the A4 Special Edition package is currently being marketed with extremely favorable terms. On Audi's website (as of 2/2005) the base rate for an A4 S.E. lease is $299 a month with $3,899 down, based on a $31,320 sticker. While this $31,320 sticker does not include an automatic transmission, it does include the S.E. package, which adds power front seats, sunroof, the contents of the premium package, leather and a set of attractive 17" alloy wheels. In addition, the advertised sticker includes metallic paint and the cold weather package (heated seats and ski sack). In the case of my son's A4, the sticker was elevated by about $2,150 because of a lighting package (auto-dimming rearview mirror and automatic headlights), and a 5-speed automatic transmission. However, the dealer (who obviously is desperate to move these cars) discounted the car an additional $1,000, which effectively raised the payment to only $349.

However, the lease terms won't go on forever, obviously, so a discussion of the car's value at sticker is in order. Even at full sticker, about $33,500, this car is an absolute steal.

The Audi A4 competes most closely with the Infiniti G35x, BMW 325xi, and Mercedes-Benz C240 4Matic. All these cars are considered 4-door sport sedans on the compact side of the ledger. Comparably equipped, the BMW 325xi costs approximately $36,295 (but still doesn't include leather), the Infiniti runs about $36,150, and the Mercedes-Benz stickers at $35,000 before any options are added. Enough said!

The A4 that I leased for my son came in a gorgeous Ocean Blue metallic, with a beige leather interior. Under the hood, a 1.8 liter four-cylinder engine fed by a turbocharger sends 180 horsepower through the five-speed automatic transmission to all four wheels using Audi's quattro system, which, by all accounts is one of the best systems on the market. In addition to all-wheel-drive, the A4 also includes four-wheel disc antilock brakes and electronic stability control.

On the outside, the body appears to be very well assembled. Panel gaps are uniform and tight, the paint was obviously of the highest quality, and the car's lines are classic. Doors shut with a solid "thunk," the trunk is fully lined and surprisingly large for a car of this size. The 17" alloys can be wrapped in either high-performance tires or all-seasons, and on this particular car, the all-seasons are fitted. I suspect that even the cars fitted with high-performance tires spend much of their time wearing snows anyway. According to the salesman, the all-seasons give up very little grip in dry weather but provide much more security in the wet. In any case, there is no difference in price between the two.

Inside, the cockpit is a model of interior design. Best described as high-tech and functional, the rich smell of leather contrasts with the very stark look of brushed aluminum trim on the center stack and the dash. Both front seats are power-adjustable 12 ways and of course are heated, there is dual-zoned automatic temperature control and an AM/FM stereo system with cassette player and CD changer. Try finding that in a BMW! The instrument panel is concise and purposeful, two large dials for engine RPMs and vehicle speed flank a driver's information display screen, and on the outer edges are smaller gauges for fuel and coolant temperature.

The center stack is a fairly straightforward affair, unlike the complicated mess that some luxury cars insist on these days (BMW's iDrive comes to mind). No shared controls or touch screens here, kids, just old fashioned knobs and buttons. Incidentally, nearly every control is perfectly weighted, tightly screwed together and substantial-feeling.

Of course, dual front and side airbags are fitted, as are side curtain airbags for front and rear occupants. The back seat has 3-point belts for all three seating positions, as well as adjustable headrests.

The Lighting package adds some particularly useful items, such as an auto-dimming rearview mirror with a compass, a light sensor controlling the headlights, and bi-xenon headlights (which emit a fabulous glow at night).

The drive, while I'm sure falls short of the standard-bearer of the class, BMW, is certainly entertaining enough for the majority of the population. Throttle response is fairly linear, with a hint of turbo lag. Low-end response is reasonably rapid, while midrange passing power is in abundance. Steering is tight and well-weighted, and doesn't just provide a good idea of where the car is going, it communicates exactly to the driver where the car has been, where its going and what the road looks like underneath. The suspension is also similarly tight, although tuned a bit softer than the BMW. Brakes are at the top of the class, hauling the A4 down from tremendous velocity with a minimum of drama. As icing on the cake, the A4 1.8t quattro is rated for 23 miles per gallon on the city and 29 on the highway, and unlike BMW, Mercedes and Infiniti, is perfectly happy with regular 87 octane gas. The quattro all-wheel drive system is a godsend in the snow, as the power seamlessly transfers to the wheels with the most available traction. This is how all four-wheel drive systems should operate.

In addition to the 4 year/50,000 mile basic warranty, Audi also provides 4 years or 50,000 miles of no-cost scheduled maintenance, which from what I gather (I don't usually shop in this segment) is the norm, but for somebody like me, it is a nice bonus to not have to shell out money for stuff like oil changes or the like.

Downsides? I can't think of many, but if I had to come up with a few, they would center mostly around the back seat and the issue of future maintenance needs. The back seat is comfortable for two, but people who stand 6'2" and over need not apply. Three people in the back is asking for trouble. I think for a couple with two small children, this car would work just fine. As far as future maintenance needs go, I just wonder exactly how much the car would demand in terms of maintenance once that warranty is up, and as it ages, how much it would cost. There is only one Audi dealer within an hour and a half of my home, and I am not aware of any small independent repair shops that have the capacity to service newer Audi models. However, in my opinion that serves as a stronger argument for leasing as opposed to buying these cars.

Nevertheless, I would wholeheartedly recommend the Audi, and for those who are currently shopping the BMW or Mercedes models, I would absolutely beseech you to at least visit the Audi showroom, as I found that the A4's value and style trumped nearly every competitor.