jetsfan101

Hey guys, just finalized my Q7 purchase at the dealer and was surprised with a pretty high interest rate. 4.99% for 60 months. Good thing i didn't finance a whole lot but am i being ripped off here? Google manufacturer rates show 2.99% for Audi in Q1 of 2018. As we are in Q2, the rate couldnt have gone up 2 points. I know the fed had a few slight rate increases but not that much.

What are your experiences? Can dealer manipulate the rates independently from AFS ?

My credit score is about as good as it gets too.

Eppieguy

4.99% isn't a bate rate anymore as the Feds upped them. I have been getting 3.99% and less for years on all of my commercial vehicle purchases (50+ a year) and the best out there right now is 4.99% I got 1.75% on my Q in 2016 but that was though my credit union.

farmerjones

A dealer is always allowed to mark up an interest (or lease) rate above the Audi standard or promotional rate. Interest rates are regional-based, so what Florida has from Audi Financial Services is likely different than California. Often times this information is on the Audi USA web site using your zip code. If you really want to know, ask the dealer to show you the AFS current lease rate document provided to them directly from Audi. Or, call another Audi dealership in your area and simply ask a finance consultant what the current rates are and see if you get a different answer. Just keep in mind, the dealer isn't "cheating you" buy marking up the rate...it's an profit tool. That might not work in your favor, and you can bring it to you attention but it's not a shady business practice...it's just not in your favor, LOL. Perhaps you got an enormous up discount on purchase price...

jetsfan101

ok fair enough so lets say the audi rate is 2.99. Dealer charges me 4.99. How does the dealer see any of that 2% difference in their bottom line if i pay audi financial? If anything, audi financial reaps the benefits

I ask this because when i was shopping around, i asked the first dealer what he thought the rate would be and he mentioned it would be in the 2s.

farmerjones

Generally X Brand Financial Services credits the dealership the marked up amount total for the full contract to an account.....if the 2% adds up to $2000 the dealer gets $2000 when the deal is finalized from Audi, and then Audi re-collects the amount on your monthly payments. Sometimes a dealer can get monthly "reimbursements" from an aggregated amount of ALL finance deals they have done in monthly payments. Either way the dealership gets the money, not Audi Financial in this case.

jetsfan101

wow this is all starting to make sense. When i said i would be putting a vast majority down, they looked at me with deer eyes like "there goes our profit"

Buddy of my at chase just told me they can do 4.24% but said that's high because a customer was inquiring about a Q5 last week and said Audi was giving him 1.99%

M0J0

3.99 is a terrible rate. I think it is what I got. I plan on paying it off next year though.

jetsfan101

agreed. If i would have known all this last week i would've financed $100 to qualify for the $1000 loyalty, just to prove a point. LOL

farmerjones

I don't get where people think these rates are "terrible". It's very regional I'm sure, but the days of 1, 2, and 3 % interest rates are quickly coming to a close. Rates have been steadily climbing, inching up and what you got last year is not gonna be the same as this year. Some institutions are slow to respond, but many have already made there moves. For example: I work frequently with loans from John Deere....all those low promotional rates are basically long gone...or will be soon.

Corgiman