17 Audi Etron Lease - take advantage of rebates to eliminate neg equity?

Been lurking for a while, very helpful forum. Thank you. I have a fun one for you:

JUst moved from CO to AZ. I have a very underwater, ill-advised, mid-life crisis induced 2012 Audi Q5 that I’m trying to hide/erase some negative equity. I went to Audi yesterday to look into an etron as the incentives and 3k down will wipe out all the negative equity, and just can’t seem to make sense of the numbers. Not sure why the payments are so high when they advertise the same car for $368/mo with 2800 down + fees. Here’s a picture of the “best” they can do, and I’ll also break it out here in case you can’t see it.

2017 A3 Etron Premium w/ sport package
MSRP: 43245
Negotiated Price: 38800
Total Financed Aftermarkets: 499

Total Trade Allowance: 19800
Total Trade Payoff: 29954.64
Net Trade Allowance: -10154.64

Customer Cash: 3000
Total Rebates: 8502 (loyalty, takata airbag loyalty, tax credit)
Total Cash and Rebates: 11502

Security Deposit: 0
Advanced Payments: 593.24
Upfront Charges: 1885.11
Total Cap Reduction: 9023.65
Due on Delivery: 3000

Monthly Payment: 593.24
Term: 42

Base Monthly: 550.32
Tax: 42.92
Monthly Payment: 593.24

Residual: 21662.50
Money Factor: .00133
Mileage: 12000

I thought this would be a good idea to get rid of negative equity by taking advantage of the airbag, loyalty and tax credit incentives, but was surprised to see the payment is north of my payment on the Q5 payment of 518. Loan on Q5 doesn’t end until 2022.

Any thoughts would be appreciated. Thank you!

The advertisements will include at least some of the rebates in that price. No matter what, on a 42 month lease you are going to be adding ~$250/mo to the payment for your Q5 negative equity.

I kind of see what you mean about hoping for the rebates to offset the negative equity, and they sort of do. If you leased that car at that sales price but without the Q5 negative equity and without the 8502 in rebates, your payment would be around $560 with $1k drive-off.

Thanks, jmac. Yeah, you’re right about the rebates being included in that price. Duh

Should have mentioned that I’ll get $1700 back from a cancelled extended warranty if/when I trade in, which would in effect make the lease about $40 cheaper each month.

They’re going to “run it by” the GM on Tuesday to see if there’s anythign else they can do and then let me know if Season of Audi might help a little, which kicks off in early November.

I realize there’s no way to win here, but wondering if I’m minimizing my financial impact and risk by doing this…

5+ years to pay off q5, at which point it’ll be well over 100k miles
3.5 year lease with similar payment and then wash my hands of both at the end and start over new.

Honestly, I like having a new car every 3-4 years, so not sure what I was thinking to begin with!

Another option is to get your Q5 appraised by Beepi or similar to see if you can get more than $19,800. You’d have to pay off the rest of your balance, but perhaps you can offset that with a $0 drive-off lease (instead of $3,000 out of pocket).


I think it makes sense to get rid of the Aging and engine trouble prone 2012 Q5. I think if you can get them to give you more of a discount or higher trade in (by 1 to 1.5k), then you should take the deal. Not a cheap lease payment but it covers the 10k negative equity you have and that loan seems like a dog :slight_smile:

Thanks for the responses. I’m leaning towards pulling the trigger on the etron, but interested to see what they come back with tomorrow, and then again with Season of Audi in early Nov. I’ll also check out Beepi. Thanks again!