Hope I am posting this in the correct section. I need a new car and I have been looking at many different options. One that is quite appealing is the following:
2021 Audi Q5 premium plus retired service loaner - MSRP $54,250 selling price $48,998. 2K miles.
The dealer doesn’t lease retired loaners but I could purchase it at today’s absurdly low rates and probably sell it in three years for more than the payoff at that point. Basically treat it like a lease, though I realize I am bearing the risk of the residual value at the end.
Does this seem like a good idea/deal? I have been looking at numerous makes/models and they are all priced at MSRP or higher. I could go the used route but (as I’m sure you all know) three-year-old used models are only about 10 to 15 percent cheaper than new models.
I’m particularly interested in the Audi (or other luxury brands) because the warranty will still be valid for me. I drive about 18K miles per year (our other car is electric so mine is our “trip” car), so I estimate that I will hit the mileage limit of the factory warranty before the time limit. Based on my monthly mileage, I’d be at 56K miles on this vehicle after three years.
Anyway, I rambled a bit, but would love to hear others viewpoint on this deal.
Yes, I know. I assume you’re referring to Kia, Hyundai, Genesis, Mitsubishi, etc. I think even Jaguar and Infiniti have more miles. I’m not looking for the longest warranty, I’m looking for a good deal on a vehicle with a warranty that will meet my needs and that is available. I have looked at Hyundais and Kias, too, but they are hard to come by at MSRP.
I am not set on buying used, but I’m also not too keen on paying MSRP or more for a new car. New cars are in short supply near me that fit my requirements, which is why I was interested in this deal.
Check out broker deals in the “Marketplace” section. There are deals to be had on Jeeps (Wranglers, GC, GC L, Wagoneer). It might not be a luxury brand, but some brokers are advertising as much as 9.5% off MSRP on certain models for custom orders.
If you go the new lease route, do you still plan to drive that much? Or would you rather go the purchase route?
Thanks - that helps. I did forget to mention that my old car is no longer with us, so I can’t go the custom order route.
Regarding your question about mileage, it will probably stay the same. I might be able to reduce it to 15K per year, but that’s still at the upper end of lease ranges from what I;ve seen.
By your own admission you’d be out of warranty in less than 3 years so I’m not sure how this is a great choice. This being a loaner, not only has the clock started on the warranty running out since the day it was put into service, it’s also consumed a good percentage of its brake pads, rotors, tires, etc.
It’s not just the brands you mention. Brands like Toyota, Honda, Subaru etc are really easy to extend the OEM warranty for cheap.
They are easy to order or claim an incoming unit at MSRP
Got it - I see what you’re saying. I was looking at it from the perspective that I’ll be out of (factory) warranty on any car I choose regardless. But good point about extensions.
The other vehicle I was looking at was a Subaru Ascent, and that’s probably the only other viable alternative I’m considering that’s available. I don’t have time to wait for an order, but lots of Ascents are incoming to my local dealers right now. My last car was a Subaru so I’m familiar with the brand and would like to stick with it. The only bummer is the fact that they are all priced at MSRP. Unfortunately ordering is out of the question for me.
You’re absolutely right. I have always received significant discounts on Subarus because of my VIP program membership, so I have a bit of anchoring going on. But I suppose I could also look at it like its the same MSRP as last year, except we’ve seen approx. 6% inflation over the last year so in a way I’m getting a 6% discount buying at MSRP. There’s also a MY 2021 Ascent near me that’s been on the lot for a while that I might be able to talk them into a discount.
Doesn’t Subaru have those loyalty coupons…I know I have one for $750 that is unused (not transferrable unfortuantely!)…got it in April and it’s good for a year. FWIW, I have leased four Subarus the last 5 years.
Like VW for example which has the same 4yr/50k as Audi at a much more attainable price. Hyundai & Kia of course too 5yr/60k B2B and an even longer powertrain warranty.
Donate $500 to aspca and you can get invoice on a new Subaru. Probably best bet in your situation. Might be order only though? Not entirely sure on the specifics if it can be in stock or order.
From what I gathered from my VIP deal through ASPCA, a lot of this is up to the dealership - honoring VIP pricing, if they will apply it to in-stock cars, etc
