A. Shea

Anyone have any suggestions on negotiating the buyout on an '03 Allroad? How do I go about this? Comments, suggestions? Thanks!

paulroad

And will you repost success or failure based on our ideas?

A. Shea

Yes and YES.

paulroad

Audi Lease typically does not negotiate. They inspect it (cost) tow it/drive it from your home or from the dealer to a depot (cost) and then it gets auctioned for a lot less than your buy out. Some have said that the AoA residual is insured. But there has been no real proof of this. And if is it then AoA is stil sharing some level of loss with the insurance co.

Others say that a delaer can buy the car instead of you (true) but they have to pay the contracted residual price according to the contract. (my own dealer said they can't negotiate so the refuse the cars and buy them at auction.)

However, there is also the story that goes if you return it to the dealer and the dealer does not want it, another dealer can make an offer to AoA credit and buy it for less than the residual.

What I think.. and that's just it.. its a thought.. perhaps you can write to AoA credit.. get a very high up name, and state your case.

You love your allroad and would like to buy it at lease end, but you can purchase a used one perhaps with a warranty for xxx.xx in your market. (send proof) You also know that the values of the car have dropped dramatically with auctions bring in less than xxxx.xx. Add to this the theoretical costs that AoA will incurr if you turn it in, etc.

Paint the picture.. create a loosing situation (in writing) for AoA Credit if you turn the car in. But offer them a win-win solution. That if they agree with your scenario, you would be interested in buying your allroad for something less than the residual. (perhaps even finance the purchase so they have another incentive to work with you.) Then pay it of after two months.

You really have to work at finding a high up name..VP level. Perhaps the VP incharge of resales, or a VP incharge of the Auction fleet, or the Head of the entire division. The stuff like this has to come down from above.

What do you think?

allroad'Ed now

a north suburb of Chicago. I've got a direct number to them at home, but won't be back there until Thurs night.

However, I know for a fact that they do insure their residuals. They were trying to recruit me to work for them several years ago and that's one of the questions I asked. And I believe their own "deductible" is $500. So if the residual is $23k, and auction price is $18K, AFS is on the hook for just $500 plus costs associated with the auction, and insurance pays AFS $4500. But insurance won't pay out a penny unless the car is disposed of at an auction. Supposed to be a way of controlling potential fraud.

It's a crazy way to do business, but the way most major lease companies operate.

rdar

Purchased mine off lease last summer through the dealer. Not much room to negotiate but I purchase early so I saved 1 payment with a purchase price a few hundred less then residual. Had them CPO the car for $1600 with about 2/3 of that covered by the savings on the purchase price. Based on my research it was a fair deal. Could I have gotten something cheaper in the market probably but I know how I take care of a car. Based on past leases the lessee has first right to purchase and the original selling dealer is 2nd. After that most leasing companies will sell at auctions, as the others have stated, either for insurance or in order to take a loss on the residual (which is what I have been told by leasing companies in the past). In my case the dealer purchased from Audi and sold to me. Don't mind since the salesman, who's a good guy, received credit for the sale and CPO.

mustbeaudi

$1600 for CPO - that's about the expected cost. Good for you!

rdar

Re: Thanks, that's why I think it's good to give the dealer a chance