poopy monster

Hello Everyone:

My wife's leased 05' BWM 325i will expire in December 2007. Our baby girl (aka Poopy Monster) is now 5 months old. We're planning to have another baby sometime in 2008. Our monthly lease payments for the BMW is $500 includes tax for 24 months and it also included 15k miles/year. My wife is the primary driver and travels at least 40 miles a day (that's why we need the 15k mileage). We were married at the end of 2005 and planned on having a baby right about this time...hence the 24 month lease term.

With another planned baby (hopefully a boy this time) for 2008, we don't mind signing a 36 month lease term. And most important, the maximum I can squeeze out of my pocket is a payment of $750/month with tax of course.

As you can see, we're looking for a bigger replacement that can fit our budget. The Q7 (2007 or 2008 doesn't matter) with the most basic package available will suit us just fine.

AudiUSA.com has a lease offer for the Q7 that will end on 10/01/2007:
http://www.bayareaaudidealers.com/audi/regional_aoa/bayarea/Audi_Q7_Special_Lease_Offer.html

Is this a good deal for the situation I'm in?
Thank you very much for your (any) inputs.

Sincerely Yours,
Poopy Monster's dad


2008 Audi Q7 3.6 Special Lease Offer$599* lease per month for 36 months
Now through October 1, 2007

Down payment: $2,999
Refundable security deposit: $600
Acquisition fee: $575
First month's payment: $599
Amount due at lease inception: $4,773
EXCLUDES TAXES, TITLE AND DEALER FEES

*36-mo. closed-end lease offered to qualified customers by Audi Financial Services, Inc. through participating dealers. Must take delivery by 10/1/07. Rate based on $50,975 MSRP of 2008 Audi Q7 3.6 with quattro, 6-speed automatic transmission with Tiptronic, panorama sunroof and destination charge. Purchase option at lease end for $27,017.

Required dealer contribution could affect final negotiated transaction. Lessee responsible for insurance and may have some financial liability at lease end. Lessee responsible for $0.25/mile over 10,000 miles per year and a disposition fee of $350 due at lease end. See dealer for details. Refundable security deposit return subject to excess mileage and wear charges. For details, consult your Audi Financial Services contract.<ul><li><a href="http://www.bayareaaudidealers.com/audi/regional_aoa/bayarea/Audi_Q7_Special_Lease_Offer.html">2008 Audi Q7 3.6 Special Lease Offer$599* lease per month for 36 months</a></li></ul>

Baxterdown

Hey Poopy, welcome!! :-)

The Edmunds Q7 Lease Questions forum is a great place to ask/get answers regarding leasing. Go to edmunds.com and click on forums&gt; suv forums&gt; audi q7&gt; lease questions.

LeaseGuide.com is great to learn anything/everything about leasing. Go to http://www.leaseguide.com.

Now, onto your lease...

If I plug the numbers posted by your dealer, I can deduct that the residual value is 53% and that the money factor (MF) is about 0.00014 (typical of AFS).

There are two problems though, one is the dealer is doing the lease based on sticker price and the second is that they are requireing three grand down! Never pay sticker and down payments on leases are no-no's because if you get into an accident and the car gets totaled you lose that money. You should always lease with no money down.

There is about a $3,000 spread between sticker and invoice on the Q7. Those three grand they are asking you to put down should be coming mostly from the dealer! If you negotiate the price down to $1,000 over sticker ($2,000 discount) and put 1,000 down you would end up with the exact same monthly payment and realize two-grand savings!

I hope all this makes sense...

I really suggest you go to Edmunds and buy the leaseguide.com package (well worth the 20 bucks). Armed with these you should be able to negotiate a fair deal!

Jose

pw-man

get further discounts since they are trying to clear the lot with the '08s coming in.

Also, the roadfly finance and leasing forums posts the most recent lease rates for each vehicle. You might need to post (to Tarry) for the most recent, but its a good resource as well.

http://forums.roadfly.com/forums/financing/

No money down, at invoice or better for an '07.

Also, grab the premium care package($595 I believe). That pays for all maintenance during first four years and adds a point to your residual which reduces your monthly payment (I would pay cash for that, and not capitalize so that you don't have to pay interest on the $595...)

You should be able to get a really good deal on whats left of the '07's...

MJOC10

The interest on $595 over 3 years is about $30, especially with the low lease rates. The montly payment will be essentially unchanged with AudiCare.

I leased a 2007 3.6 Premium with most of the options (MSRP of $55,000) No cap cost reduction and my payment is $733.66/month.

Whatever you do, do NOT tell the dealer that you have to be under $750/month. Negotiate the best price you can. The numbers will fall where they are supposed to.

poopy monster

Thank you much for your very informative response. The linkys and lease info referrals will really help me get educated on leasing and dealing with dealers. I didn't deal too well on the BMW and hated the experience. I'm totally dreading the coming experience with Audi. Why can't the car-buying experience be the same as buying a TV....argh!


So from my understanding,

1) go to the dealer like you're buying a car and not leasing;
2) look for 07' Q7 only;
3) negotiate 9% to 10% below MSRP or $3,000 to $4,000 below invoice;
4) include AudiCare ($595) into final price;
5) wait for the sales rep to come back from talking to his manager about the deal;
6) sales rep comes back after 20 minutes smelling like smoke and says it's a no go from the manager and that I need to pay $2000 more;
7) it's a tug of war from this point on;
8) once both sides finally are agreeable on a specific price, then tell them I'm leasing;
9) tell them I don't want to put any down payment;
10) the monthly payment is calculated and is higher than I can afford;
11) sales rep shows me the calculations, but I don't know what i'm looking at cuz he shows me all of these additional charges and not the actual invoice of the car;
12) sales rep tells me it's high because I'm not putting anything down
13) I'm ****ting in my pants and don't know what to do...

Oh I think I just describe my BMW experience above.

Here are some questions:

For Item 3 above, what if the sales rep don't show the invoice like they did at BMW, especially after repeatedly asking for it?

For Item 6 above, I really hate the waiting game and the tug of war. Is there anyway to avoid this at Audi?

For Item 9 above, I did say that to BMW, but the sales rep said I have to pay at least the first month payment, a security deposit, and some other fees that totaled $1,500 I paid for down payment. So, Mr. Jose, when you said no down payment do you mean absoluately zero payment...not one dollar out the door?

For Item 10 above, the monthly lease payment is calculated higher at the dealership than what I did online on the BMW. The BMW sales rep brought me to their Fancy CPA Finance Department Head on the second floor private office to explain their calculations. Is there any way to calculate the actual monthly payment online before going to the dealership? I want to avoid the BMW experience again and be armed with calculations similar to theirs (plus minus $10 to $40).

For Item 11 above, I remember BMW included additional charges that the sales rep said are required: a car prep fee and a couple of other fees that I don't remember off-hand. How does one know what is required and what is BS? And if we know it's BS, how ddo you say NO? Do you just walk away after this far in the negotiation?

For Item 13 above, if I'm ****ting in my pants again (not my baby, but me), is there an "EASY BUTTON" that you guys know?

Again, thank you very much you guys. I'm glad I'm not alone. Again, any inputs is totally appreciated. Thank you.

In the interim, I'll be at Edmunds and LeaseGuide catching up.