What do you guys think of this deal in San Francisco. Price include 10% off Costco Auto Program. I tried to talk to a bunch of dealers and none will go above the 10% off MSRP.
Lease term: 36M / 12K
MF: .00089 (marked up from 0.00040 base rate) - this is Tier 1 per dealer
Residual: 50%
Zero down
Monthly w/o tax: $889.59
Monthly w/ tax: $971.88
Questions based on the attached quote sheet:
What is “Demo Mile threshold” (1000)?
There is an “Other upfront charges” for $895. This sound like the acquisition fee paid upfront?
“Demo Mile threshold” (1000)? when the car can be leased or it turns into a very very nice used car in AFS’s eye if I’m not mistaken. Audi isn’t my realm of expertise.
2nd, yea.
No they’re just marking it up.
I recommend contacting @Samaudibh he’s straight forward and the GM of Beverly Hills Audi if they have anything you like.
Its a rough way of comparing deals across vehicles. It is = (all in monthly payment / MSRP).
The trusted hackrs will not like this, but generally, good deals should be less than 1%, or less than $720/ month in your case all in. There are lots of other factors though, which makes the method imperfect. For instance, Porsches typically have lower discounts (MSRPs closer to market value), so one could expect the ratio to be higher for them.
Great deals would be less than .9% or .8% of MSRP. For your payment, you shouldn’t have too much trouble finding a >$100K MSRP 7 Series.
I played around with calculator to see what can be changed to get 1% (minimum). Aside from the static variables such as tax, looks like I have to do this:
Reduce mileage to 10K (residual is now 51% per Edmund)
Discount of 18% of MSRP with no MSD
Get 0.00040 MF (Tier-1 per Edmund)
I think I can get the dealer to give the correct MF, but not sure if they are willing to budge on giving 18% off MSRP given the current situation.
Wow, really?! Is that because BMW tend to give more discounts?
Yes, you could reduce the mileage (usually only 20 cents per mile for overages), get the buy rate, tier-1 MF, and ask for a bigger discount.
If you can’t get the deal you want after calling lots of dealers, consider other vehicles. Look at the broker offers on the forum.
The only reason I am trying to get the deal with my local dealerships first is because I currently have a Mercedes lease (maturing in December) IIRC, the broker can’t really help on trade-in and I will have to deal with the dealership directly.
Honestly, if it has positive equity throw it to carvana. You still have time before the 60 day deadline. If you want another Mercedes talk to @Calvin.MB.
Consider trading if you do have equity. Brokers don’t like trades because it’s extraneous, but you can handle it yourself.
I tried with Carvana, Vroom, etc. Unfortunately, I have an E Wagon and wagon are not as popular with other vehicle so I don’t get positive equity.
Agreed, that’s why I am trying to deal directly with local dealership first.
Originally, I plan to wait till December and check out the All Terrain wagon. But, they may not come until end of December and the current Audi Costco program seems pretty sweet. Hence I am looking at the A6 All Road and now E-tron per @SSB-LA
The 1% rule is a useless metric, especially on something like an A6 Allroad.
@HubbaHubba not sure why you’re trying to exit the eWagon early, but it sounds like you tried Carmax/Carvana/Vrooms/Shift/Algo/etc to sell it, and you’re upside down. That’s negative equity you’re rolling into lease, first mistake.
The MF is marked up, which means you’re paying excess rent on the negative, second mistake.
The deal itself isn’t great, and maybe without the trade you grind the MF down and call it good enough, but if you’re doing this now just to get costco incentive, I think you’re turning an average deal into a bad one.
An eTron (which is nice, but a very different ride IMO) does have more room to bury that negative if you really want to do this deal now. If I were you, I’d ride the eWagon to disposition and pickup the All Road in December.
I negotiated the deal myself. There are several threads on LH that should guide you.
There are dealers both in NoCal and SoCal offering aggressive deals.
Conditions are better for 24 rather than 36 month leases.
In addition to the 10% Costco and $2K loyalty, there is $7.5K lease cash and $7.5/9.5K market allowance on PP/Prestige available now. Dealers are not obligated to pass all of the last two, so you need to negotiate them.
The best deals posted on LH have been able to get an additional 3-5% discount from the dealers.
Samantha at Audi Fremont was offering aggressive deals recently in NoCal.
There isn’t one. It varies vastly by vehicle, personal situation, etc. Anyone who claims there is a specific msrp % that represents a good deal is giving you flawed information.
Yes, I had plan to wait till December, but just want to see if I can utilize the Costco program and probably get a good value on the MB and learn from this forum.
It is likely you are going to be paying for those remaining payments on the MB one way or another (will just come out of your discount) so I suggest you just leave it out of the deal. If there is a chance there is equity go get quotes from a few MB dealerships.
Agreed. I just found out that Audi have tons of cash incentives and allowance and coupled with the Costco auto program, I can probably still come out ahead on the remaining payments (2 months left).
