I’ve never leased before and am looking for advice on if this is a good deal.
2024 Audi Q5e Premium Plus, Black Optic w/ warm weather package
$68,355 MSRP but then dropped down to $60755 with rebates
3.5 year lease, 10K miles per year (35K total)
$0 down
$725 first month payment and $650 thereafter
51% residual (if we do 3 years its 55% with the same numbers)
This will be my wifes daily driver (she’s always wanted an Audi and this is the one she wants). Her roundtrip for work is 6 miles (she goes in three days a week). We have a larger vehicle for road trips so this will be a local driver. I appreciate any feedback!
If you’re not a member of Costco, join. They’re offering a limited time special on this automobile. You can always cancel after you get your new car. The $60,755 should be closer to $58.6k. That’ll align the payment based on the MF for the auto. Additionally, you’ll get an additional Costco $1k member-only incentive.
Ah okay. I am a costco member and I asked the sales rep and he mentioned this to me so I must have taken the number down wrong. He said the Price is $58,655.
One other thing to note is that we are not against purchasing too if that makes more sense.
Selling price depends on the MSRP. Much easier to discuss your percentage discount target than to discuss a flat number for the selling price.
You’re going to have to be prepared for a lot of “no” answers so be prepared to make a lot of offers, including lower MSRP cars. For example a P+ with the warm weather package is ~$65k.
Go look at the Pre-negotiated deal shown for a Q5E and see how it compares to your deal. The PND is offering 10.5% discount off MSRP and $7500 rebate. Add another $1K for Costco. Putting these numbers into the calculator I get $691 a month for 36/10K.
Don’t fall for the 42 month lease. It leaves you six months without warranty coverage and kills residual.
Most likely this ship has sailed and you need to be mentally prepared to make offers to the next 10 nearest dealers, maybe even more.
By definition searching for the best price has a low probability of success. If it’s a 10% probability then 9 of 10 will say no. If it’s 5% then 19 of 20 will say no.
Be like a shark and always keep moving. Don’t get bogged down in going back and forth. A quick “no” is much better than getting bogged down which is just a waste of time that results in an eventual “no”
Thanks for the tip - I saw that but there were some add ons that took the price up (black optic package being one for example). Thanks for the heads up on the 42 month lease, we weren’t considering that but good to know.
Fair. I can accept a no, no problem. Our sale rep has been good to work with thus far and knows we are going to buy an Audi one way or another, almost up to him if its going to be with him or not.
At the current pricing would you say this is a bad deal?
The buy rate money factor on the Audi Q5e lease is 0.00142 which is about 3.4% APR. If you cannot beat that implied cost of funds with used-car financing (or your expected return on equity significantly exceeds 3.4%) it would make more sense for you to ride out the lease term and simply save cash each month during the lease.
For example, if the buy-out of the lease is $52k and you financed that @ 6% over 60 months, your monthly loan installment payment would be about $1,000.
If your IAC-provided Q5e lease has after-tax monthlies of $550, then you would be far better off paying the lease each month and saving $450 into a brokerage/savings account. You’ll have over $16k saved up at the end of the 3 years; and you can then figure out if you want to keep that Q5e or roll into a new lease.
Okay good info - the MF was definitely higher than this.
The more im looking at this the more Im thinking purchasing might be the better move. We generally keep cars for 8+ years and in 2-3 years I’ll have another car to replace and wouldn’t want two car payments since we’d likely put a healthy amount down.
Remember, you can always buy out your lease at the maturity of the lease.
Why don’t you just lease the one Scott is selling above, save cash each month, then use the saved cash plus a short/loan in 3 years to capture the vehicle? Interest rates on secured loans may be 2% in 2027.
First Republic Bank was handing out 2% auto loans in 2021 before they imploded heh.
