Hi Everyone,

I've set about locally here in San Diego to lease a new 2013 Audi Q5 for my wife but was shocked with the seemingly terrible offer I received in writing today from the dealer. My credit score is 780. I frankly couldn't care less which dealer I use I just want a fair deal. Does anyone know what the Audi money factor and residual should be this month for top tier credit on a Q5 3.0 lease (I assume 780 qualifies?).

Here is their offer.

2013 Audi Q5 3.0T Premium Plus
Moonlight Blue Metallic (our 1st choice is actually Monsoon Grey)
Black Leather Interior (Chestnut Brown is 2nd choice)
S-Line Package
Sport Interior Package
Bang & Olufsen Sound Package
Audi MMI Package (we're on the fence on this option really don't want to pay the $3k for it but realize its hard to find one without).

MSRP: $52,600
$1,499 total down includes upfront fees registration fees, 1st month payment.

Lease Term: 36 months so 35 months remaining.

Payment: $799 + CA Tax = $865 for 35 months

Money Factor: 0.00206
Residual: 57%
Residual Amount: $30,0021.90

Am I crazy thinking this is hardly a good deal???

Thanks

 

Looks like the money factor converts to just over 4.9% APR, and by going backwards from 4.9% and $799/mo I get about $26700 being financed (which looks like MSRP plus taxes/fees/etc.). I've no idea what goes into lease terms or anything, but that doesn't look particularly encouraging. Definitely should check around and see if somewhere else has a better leasing offer.

 

Looking at rough numbers, for about another $100 a month you could BUY that Q outright and OWN it in 60 months.
Based on a loan from my credit union at 3.5% interest and getting a discount off MSRP from the dealer.

 

This deal sounds expensive to me. Did you negotiate a price for the car before you started working on the lease deal? You never want to figure out your financing from MSRP. Start at invoice and work your way up. Once you have agreed on a price for the car, then figure out the lease terms.

 

your best solution is finance the car. im paying 680 to own my car on a 60 month term.

 

During my lease negotiation of the Q5 3.0T, I qualified for Tier1 rates and I ran two scenarios. Lease over 3 years, purchase over 5. The lease over 3 years saved me about $120/month which works out to only $3,600 savings over the 3-year period. Audi's do not lease particularly well because the factory does not artificially inflate the residual. A higher residual (like BMW uses) will mean that you are financing less and, therefore, lower payments. Audi's lease are structured to approximate the real value of the vehicle at the lease turn-in point. BMW drives payment deals with leases in excess of the real market residual meaning that their vehicles lease well--but, you are stuck with the BMW until the end of the lease for sure since, at any point in the lease, the real value of the vehicle is well below the inflated residual and the lessor (you) would have to come up with the delta to get out.

The ultimate question that any lease vs. buy decision with an Audi comes down to whether you see yourself keeping the car beyond 5-years. At the end of 5-years, yes, you will own a car worth between $20 and $25K (really depends upon the model you choose and your mileage)--but, during the last two years of payments under the loan (beyond the 3-year lease), you will have paid approximately $15,000 in payments and when added to the delta on a 3-year lease plus the first 2 years of your next car lease, you have paid about $23K more than leasing (yes, leasing 2 cars over a 5-year period) to ultimately own a car worth about the same amount. You haven't "lost" the $23K--but, your asset is worth about the extra money you paid and you have a 5-year old car. I can show this to you on a piece of paper. My wife who is a lawyer made me walk her thru the math ten times and, in the end, she is now a lease believer.

For me, I choose the lease. I save $3,600 over a 3-year period and then I am out into a new ride. Zero maintenance during that period as I added AudiCare which actually reduced my lease rate and added $7/month to my payment.

I think cars, by and large, are depreciating assets and there are very few cars worth driving more than 5 years unless you are prepared to deal with repair bills. But, I do have friends that push their rides 6 to 9 years. If that is you, then leasing may not be a good idea. I like to have a car with no expenses for 3 years and just as the warranty starts to come off, roll into the next one. With the way that technology is moving (navigation systems, etc.), I find that I can't own cars that long. Imagine owning your iphone (or Samsung) for 5-years.... I do know people that wear a badge of courage with a 4-year old phone---but, I can't go more than 18 to 24 months.

Cheers and good luck!

 

i know what you mean, but its a good feeling when your car payments stops.

 

The Q5 is the first car I've owned where I wasn't able to pay off the balance within 6 months. Being tied to a monthly payment for such a long time is driving me nuts, so I think I'm going go back to buying cars with cash after this. I can also understand NCSailing's need (want?) for a new car every 3 years, but at the same time it brings another element of risk into my life. What happens if I lose my job for an extended period of time? The more money you make, the longer it takes to find an equally well-paying job. I'm very risk-averse so the fewer monthly payments I have, the better. I haven't had a car payment for about 90% of the time since I got my license and it's a good feeling

 

lucky lol. i have four more yrs to go lol

 

Me too, but I'm also accumulating a separate savings account that I'm going to use to pay off the balance whenever I feel comfortable. Then I'll probably drive the Q5 for another few years while saving up for my next ride. No more car payments for me ... I hate this. Sorry, a little off topic.

To the OP: Definitely hold out for a better deal. I think ANY other deal would be a better deal to be honest.