Circling back at end of lease and a warning on refijet.com

[Zeeaudi]

So this forum helped me get a killer deal on a 2019 Audi Q5 36 months ago. Zero down, 460 a month yadda yadda. I have 25k miles so way under and lease is up end of July, buy out is 24k.

Went to refijet.com due to good reviews, preapproved at 2.7% for a lease buyout with tax paid out of pocket. Put the hard pull credit check in and they called and said congrats you are authorized at 5.4%, i said what the hell this is some bait and switch action, GTFO. They said sorry, the pre approval rate must have been a mistake!

They absolutely did not care and made no effort to explain (mainly because the rep didnt have a clue what she was talking about). Really disappointed in them.

In the end I called my bank, Navy Federal, quick application, 4.2% rate including tax, total monthly about the same, check on the way. Shout out to the credit unions.

Figure I’ll keep it until better lease deals come up in a year or two then maybe sell and go for a volvo.

Crazy that the Q5 is 24k + tax and carmax has one with similar mileage for 36k. So tempting to sell but i think its smarter to buy it and hold it for a while.

[trism]

Congrats on not just taking the 5.4% consolation prize!

With that said, 4.2% is still a pretty stiff rate, assuming good credit and a manageable debt load (DTI).

Good news is you can refi ASAP with one of the many other readily-available options out there.

The Best Finance Rates & Hacks! Submit your CU recommendations!

Sometimes it can be better to finance a car rather than lease it! Some of the reasons this may be true include: Federal EV credit - some lease originators may not pass the full Federal EV credit or state credits. Through financing or balloon loans (another type of financing, you can take advantage of these credits if you have the tax liability) High Lease Money Factor - some lease originators have a very high money factor, higher than what it would cost to lend from another bank! Combined …

PS: Loan rates are often advertised “as low as…” and heavily disclaimed (credit unions do this too!), and decisioning / pricing on auto loans is generally automated.

Phone agents are there to provide general customer service, and have little or no insight into how the approval/pricing algorithms work.

Good luck with the refi!

[HersheySweet]

Whats your credit like. Is there a possibility that your score tanked or your identity got stolen? SoCal go with Wescom FCU, they’re doing as low as 2.28% APR for 72 months.

[jeisensc]

@trism

With that said, 4.2% is still a pretty stiff rate, assuming good credit and a manageable debt load (DTI).

4.19% is NFCU’s “Used Car” 61-72 month rate. There might be better, but it’s not eligible for new car financing rates.

[trism]

@HersheySweet

Whats your credit like. Is there a possibility that your score tanked or your identity got stolen?

I think that’s Navy Federal’s best rate (assuming the Late Model Used Vehicle rate applies to a lease buyout and the term was 61-72 months):

Never assume that using “your” credit union is the best option just because they “serve” people who are “like you.”

[trism]

I was comparing it to the other options in the marketplace.

I stand by my assessment.

[jeisensc]

Well it’s 1.2% less than what OP was offered. Who has better used car / lease finance rates right now?

[trism]

Without even going outside my own head or beyond this thread,

@HersheySweet

SoCal go with Wescom FCU, they’re doing as low as 2.28% APR for 72 months.

and DCU is still 3.24% for 65 months.

[jeisensc]

At 66-72 months it’s a point higher (and higher than NFCU for 61-72 months) but fair enough.

[trism]

Which one are we talking about? This is Wescom:

[jeisensc]

I was referring to DCU

[trism]

Oh, yeah. Duh.

Sorry, I’m normally up early but it’s even foggier upstairs when I roll out of bed before 3 a.m.

[6 a.m. flight ]