Fun4stuff

So I had signed a lease agreement for a 2018 Q5 3 weeks ago (dealer already had it ordered). It came in last Saturday.

So today we fill out the credit application. Car salesman calls me and says there are now new residual values and money factor for this money and that my monthly payment will be going up ($20). He said since we didnt fill out the credit application at the time of the agreement we didn't get that rate locked in. Mean while, we're supposed pick it up tomorrow.

I'm really pissed off. This doesn't seem right at all. Is this typical? Is this some kind of scam?

kakgungor

I'm not sure about what is "normal" but it seems to me that if the dealer were reasonable they should be willing to at least adjust the purchase price so that your payment and all-in cost over the term of the lease works out to what you were offered previously. I'm guessing they would rather give up a few dollars on the purchase price than lose the sale completely. I would play hard ball and threaten to take your business elsewhere if they don't provide a reasonable solution.

f10

Same thing is happening to me. I completed the app several weeks ago and have been waiting 3 months for delivery due to constant delays, and now the residual went down 1% and not sure about the MF. Ill walk just out of principle if they dont make an adjustment. Supposed to pick the car up Wed.

Fun4stuff

Yeah, wtf. It's shady as hell. They know you've had you're hopes up for weeks/months... Then pull a fast one on you try and get $800 more out of you?

I called and told him point blank I was walking if they couldn't hold up his end of the deal. His response, "how about you meet me half way?" I again said no way and just the fact that he was trying to register the deal we already agreed to made me what to take my business elsewhere.

He said he had to talk to his manager... BS. Called me back 10 mins later and said he was going to give it to me for the original agreed upon amount.

Now I'm a little sour... Paranoid they're going to try and rip me off in some other way.

benjaminnicholas

As long as you haven't signed on the dotted line, you always have the power to walk away. Exercise it, if need be.

It's funny how quickly a dealer will shape up once you head for the door.

Transfer

Well the VW/Audi financial lease numbers could have changed, dropping the residual and if you weren't "locked in" then yeah, your lease will be different. However, I agree they should adjust to make this right. $20/month isn't that much but I'd have a real sour taste over the deal as well.

superswiss

That's pretty normal. Ordering a car is not a commitment. While you wait for your car, the interest rates can change or the residual can go down. If you don't want to take that risk then work with your dealer to lock in the rates at the time you order. If the rates go down while you wait then you get the new rates, but if they go up, you are protected. Works pretty much the same way on any type of credit, even when buying a house. You typically lock in the rate early on, so that you are not at risk while all the paperwork etc. is done until the loan closes.

The interest rates could have also gone down while you waited or the residual could have gone up. Unlikely at the current time, but if it did and it lowered your payment, would you have insisted to pay the original amount? This goes both ways. The rates aren't final until the loan/leases closes.

rentonrenton

what is the residual value now? How much percentage?

BlueLodge400

The residual value has slowly gone down each month. The good news is that the money factor has also gone down a little.

October rates for a 36/10 lease:
RV: 63% for SQ5 Prestige and 64% for SQ5 Premium+
MF:.00183 (4.39%)

Most dealers will markup the MF to make extra $. Make sure they quote the accurate rate of .00183 for October.

Past Months on 36/10 SQ5 Prestige.
July
RV: 65%
MF: .00195
August
RV: 65%
MF: .00195
September:
RV: 64%
MF: .00192

Edmonds has a great lease Q/A in their "car forum" section and will post updated lease numbers around the 2nd of each month.

Fun4stuff

Thanks. It's my first time leasing which is why I was asking. I didn't want to come off as an ******* to them, but when they call me the day before delievery and say oh by the way you're payment, which I thought we were done negotiating, was going to go up, made me a little suspicious. $720 more over 36 months is not a lot, but it did seem a little like I was being 'nickel & dimed'. I guess lesson learned. Next time I'll make sure we get the mf and rv locked in... Or at least ask so I'm not thrown off guard if they do change.