Ok, let’s try and break down this monthly payment into its components:
Depreciation:
The net cap cost is $52,720 after adding in all of the other stuff.
The residual is $27,755 so the depreciation is ($52,720 - $27,755) = $24,965.25
Dividing that by 36 months gets us to $693.48.
Finance Charges
$52,570 + $27,755 * 0.00165 = $132.78 per month ($4,780.23 over 36 months)
Taxes
Depreciation + Finance Charges * Tax Rate
($24,965.25 + $4,780.23) * 8.25% = $2,454 or $68.17 per month.
Adding up each of those:
$693.48 + $132.78 + $68.17 = $894.43. You can’t control the tax rate but the other two are pretty bad.
When it’s all said and done - your Net Cap is $52,720 on a car with a MSRP of $55,510, which comes out to a 5.03% discount off of MSRP.
Just for comparison, I am attaching a quote that I received after 1 conversation with a dealership for a Q5 last month when I was shopping around. The MSRP was $50,430 but the Net Cap to MSRP discount was 11.30%. Not great by any means but you can do much better than what you received. Obviously deals and rebates change from month to month but 5% off is not a great start.
Also as you mentioned, the MF is inflated and the residual seems really low at 50%. I was quoted 55% for 12k miles for a Prestige Plus, but these things are regional. Check with Edmunds.com on what the residual should be for that car in your area.
I would not share the quote you received with the next dealer you go to. I would mention that you’ve been shopping around and have been getting aggressive offers, but do not show them your numbers.
Best of luck!
