Here’s my third go at things. Before you ask why am I putting so much down - it’s capital reduction. I need the payment to be 400 or less. The dealer told me MSD weren’t enough to get me where i needed to be. So here we go:
2019 Audi Premium Plus
MSRP 52,155
Discount 4,000
Sale price 47,155
Dealer add on tint 500.00
Trade equity 4,365
Cash Down/including fees and first payment 7,000
Tots CAP reduction 11,365
2,000 rebates
MF .00225 (high I know)
36 months 12,000 miles
Residual value 29,205
Dealer adds 895 Audi care no charge
Payment of 399.00 a month.
Thank you for your help!!!
Why would you put $11,000+ down? That’s a huge financial risk as that money is likely gone should you total the car. Your effective monthly payment is over $700. Not understanding the need to be at $400 monthly when you’re actually getting there artificially.
I’m shocked you are even entertaining this, no less didn’t just walk out based on all the dealer gimmicks like the bloated MF, required tint, and BS about MSD. You obviously told the rep you need to be below $400 and made that happen but maximized their profits. Although not recommended, you can always put more money down to drop the payment so negotiate it like you are doing zero off. Is the trade-in value offered similar to what Carvana, etc have offered? Selling it separately simplifies the transaction.
Also, they are not just “throwing in” AudiCare for free, rather it works out to be a few hundred bucks as it increases the residual value.
As a frame of reference, this guy just got a $60K SQ5 for cheaper than you taking into account the $10K you are essentially putting down.
Hands down one of the worst Q5 deals I’ve seen here.
The dealer is charging you 500 for tint, the money factor appears to be marked up from .00163, so I highly doubt they’re actually giving you Audicare for free… they may say they are… but you’re putting 11,365 dollars down on the car.
Effective payment well into the 700’s. Wouldn’t be surprised if the finance manager told you in order to get their “super awesome deal” you also needed to buy tire maintenance and insurance.
I don’t even know how to respond. First I feel like I just got beaten up on the playground!! So - the 400/mo comes from my better half’s insistence. The trade in value I am comfortable with as multiple dealerships are all in line with each other. I was skeptical about the comment on MSDs and didn’t understand why they had such a high MF. I guess I simply am still not understanding how to negotiate a good Q5 deal. I legitimately thought the numbers made sense in getting me into a nice car at 400 a month. Apparently I am horrible at this. Someone mentioned a broker. How would that help me? Phoenix is limited in Audi dealership options. Any good (non beating me up) input is greatly appreciated. o
What is the basis for the $400 monthly payment with your spouse? A mental comfort? A lease is a loan on the cars value depreciation, interest and tax. If a car has a residual of X and an interest rate of Y and your total cost is $20k, it doesn’t change based on putting cash down up front or paying it out evenly over 36 months (or whatever the lease term is). The point is, you will owe what you owe on the car based on the deal, and putting money down to lower the monthly doesn’t change how much you pay. Couple that with the fact, as others have noted, that there is no financial benefit to putting money down plus the risk that you will have paid for a chunk of the loan and will not recover that money in a potential situation where the car is totaled, stolen etc and you should be able to get your spouse over that block.
It is not $400 a month. You are paying the money up front. I highly recommend you read this as you do not understand the fundamentals of a lease:
You can get to any payment you want on any car if you make a large enough down payment. You need to look at your total cost. Divide the $11,365 you are putting down by 36 and you get $315 and that to the $399 monthly payment and you get $714 that is what you are paying per month for this lease.
I guess I’m having trouble understanding what actually would make a good deal then? This sucks. I literally woke up this morning thinking I was buying a car today. Now I feel like a jackass. Are there brokers in Phoenix that are able to assist?
There are brokers everywhere in the country, but check out the SoCal brokers… they may be able to ship a car at a good price to you. Some good ones are here on the forums. Just search for “audi” and “broker” search terms on the forums and find the threads that represent the brokers. Brokers on here have “Registered Business” listed under their user name. Some “Registered Business” folks are also just salesmen at dealerships. They can probably help you as well.
It sounds like you’re married to the idea of getting a Q5. Honestly, there’s nothing you can really do to get it down to an effective 400 a month payment. If you’re spouses’ mentality is “The lower the monthly payment, then the cheaper the lease is” then they may be a little misguided and will need you teach them the truth.
If you need to stay under 400 a month and need a crossover, check out Alfa Romeo Stelvios. My brother just picked one up at 340 a month for 24 months with 2k down. It was a Stelvio Base with 45k MSRP. My sister just picked up a Stelvio Ti with a 47k MSRP for 365 a month with same down at the same dealership. The deals are definitely recreateable.
Don’t stress man, you’re doing the right thing by coming here. You may feel like you’re taking shade from us, but this is really for us to impress upon you the significance of NOT putting 11k in cash down on a car for a lease.
You are on the right path. Don’t be disillusioned. Think through all of your decisions. We are here to help… and maybe laugh a little :P.
Wouldn’t you feel like a bigger jackass if you got the car and then posted here? Be glad you didn’t pull the trigger yet.
You would overspend by $3-4K here for the same lease. If you are deadset a Q5 explain the situation to the wife. Putting more money down on a $1M house to get a lower mortgage payment still means you bought a million dollar house.
If you are going to do this yourself:
Read every post here in the past 6-10 months regarding Q5s to know what to expect and any nuisances of leasing an Audi/Q5
Post to the Edmunds forum for 2019 Q5s and get the base money factor, residual, and any incentives for your area/zipcode.
Email every dealership in a 100 miles radius that has the car you want based on the web inventory and ask for the selling price to lease (not including incentives) and even propose a realistic low price you would accept based on your calculations and research and let them counter. Usually the internet sales reps/managers are the best as they have a low margin but high volume focus.
Keep a spreadsheet of all the cars with MSRP, selling price, etc using the LH calculator.
Start negotiating with the 2 or so best offers. Demand the base MF and reject any dealer addins. They can not manipulate the RV or DMV fees, but watch everything else. I would keep the trade out of the equation initially to limit the variables. There is no tax incentive to trading in the car like when you buy a new one, so take the best number even if it’s from
Carvana or different dealer.
Go to the dealer once you lock in a deal and agree on ALL aspects of the deal.
No offense, but the current dealer probably smells blood in the water based on your conversation with them and why you are potentially getting taken. If you know you stuff they will try to work with you or even just walk away if they can’t meet your terms. A majority of people don’t know what they are doing when they walk into a dealership so you are not alone. If you are educated and know the number inside and out, you can make a deal happen. Good luck!
A lot of people here try and go by the 1% rule. which is paying less than 1% of MSRP. So a 50k car, 500/month. And that is with monthly payment, taxes, and all fees calculated in I believe. Obviously not every vehicle can be had for less than %1 of MSRP, some cars just don’t lease well due to the lack of discount, money factor, residual value and other factors.
Thanks everyone. I don’t mind getting beat up a bit! But I do like the help more. I love the q5. We can spend more on a monthly basis if needed but i guess it’s the idea of spending that much each month on a car that has her sideways. It doesn’t help me that I buy a new car every few years. This is the first lease ever so I really feel like I have no idea what I am doing. It’s reminiscent of 1991 when I thought I got a good deal financing my car at 23 percent.
Get some more quotes and post them. I would definitely email some so cal dealers. Either have it shipped or pick up a cheap southwest ticket and make a trip out of it.
Realistically you’ll be above 500 a month. If you like the fantasy of just seeing less than 400 a month on your bill, I can appreciate that; just accept you’re risking your money.
With that being said, you need to get a much steeper dealer discount, max out MSDs, get rid of all the dealer add ons (like tint), and get base money factor. These things will help get the effective payment well into the 500’s. Then you can use your trade-in as the “cash” to get it below 400.
I still don’t think you should put any money down, but you if you absolutely love the car, have to have it, and also need below 400; that’s what I recommend.
o