Hi Team, I’m looking to lease a vehicle for the first time in my life. I am looking for different hybrids and I stopped in at Audi in the Bay Area this weekend. I received this quote from the team there today. Can you give me your opinions on if this is a decent deal? Anything I should do to negotiate it down further?
It is practically impossible for us to tell you what a “good” monthly payment is for your specific lease as lease programs are highly dependent on region, personal qualifications, tax rates, etc.
We always recommend the following method before you ever contact a dealership. If you do all of the work up front, you’ll have a stress free dealer experience and set yourself for success.
- Read Leasing 101 (Blog | LEASEHACKR) to understand how to calculate a lease payment and the variables. Monthly payment is an output, not an input!!
- Pick a specific vehicle that you want to target
- Gather the current MF, RV and incentives from Edmunds forums for your zip code
- Research the LH marketplace and other deals that have been made recently on your vehicle - what was their pre-incentive discount? How did their lease terms differ?
- Plug your numbers into the LH calculator, and use a pre-incentive discount similar to what you have seen
- Create a target deal, this is what you’re trying to negotiate to. You can try different terms, selling price discount, etc. and see how your monthly payment is affected. It is also possible that different trims of your vehicle may have different MF and RV (i.e. this is very common with GM), so make sure that you look into that. Come up with a set of inputs that give you the output that you want - your desired monthly payment.
With a target price determined, you now have a deal to pursue and compare dealer offers against. More importantly, you have a solid foundation to work from.
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I’m simply asking if, for this Audi Q5 Hybrid, it’s a reasonable deal in San Francisco, California. I like this car very much after a test drive. But, want to understand where might be a good lever to pull in this negotiation with the rep at Audi.
And I provided you with step by step instructions on how to determine that, based on your personal situation.
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The calculator determined the monthly payment w/tax to be ~$583, compared to the $608 they offered. So I’ll have a bit of wiggle room to work with for something “fair”
Are you saying that when you plug in the numbers they gave you got $583 vs the $608 their offer shows? Or are you saying that set a target pre-incentive discount based in research and that got you to $583? If the latter, what target pre-incentive discount did you come up with?
With the available rebates & incentives, the residual value the dealership estimated and the money factor the dealership was using, the calculator showed me that $583 (including tax) would be a monthly payment.
I’d like to try and negotiate this down and drop the MF from .00118, if possible. I’m also not putting any cash down upfront.
If you’re using the dealers numbers and you’re getting a substantially different output, then you’ve either input the information wrong or there is a misunderstanding in the numbers (usually a presumption that the sales price is pre-incentive vs post-incentive or what mf is being used).
What is buy rate if they’re using .00118? Have you confirmed they’re using the correct rv? There should be no estimation going in with the rv. It is what it is.
None of the fees and such are shown in their dealer offer. All of that is needed information. Incentives need to be separated out so they’re properly taxed. That and your das doesn’t match, so you can’t compare monthlies directly anyway.
I’d recommend you stop talking to dealers, forget about this offer, and work through the steps in the first reply. You really need to know where you’re trying to get to before trying to negotiate.
I think your numbers are wrong. You’ve got discount off msrp including rebates and incentives. Those need to be separated out
It seems like the dealership hasn’t provided all the information possible to me. The “Dealer discount and rebate” section & the “rebate” section under the residual is different. But even when I moved the numbers in the calculator around, there wasn’t much difference in the monthly cost.
Having them in the incorrect areas effects taxes on the rebates. With $15k in discounts/rebates shown, if that’s all taxable rebates, you’re talking an extra ~$1400 in cost potentially. That’s ~$40/mo
You’re also missing a good $1500-2000 in fees here that aren’t shown on the dealer offer. Doc fees, acquisition fees, registration fees, etc
I’d be willing to bet that the discrepancy in calculator outputs is in missing fee amounts and missing upfront taxes in incentives.
You’re really missing the forest through the trees here in evaluating the deal though; you need to get the proper rv/mf/incentive information so you can isolate and normalize the pre-incentive discount and then compare that against comparable deals to see where this falls.
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Which is why we keep recommending you get all the info possible from Edmunds to determine what levers you can pull.
Market place has lots of Q5 e deals. Just spend 10 minutes you will get lots of data points. For example,
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Agreed. With 13k discount, $6xx payment does not make sense. Deal listed above by samaudibh is at 400 with msds. But I suppose OP wants 15 k miles which makes a big difference.
It doesn’t make a big difference … around $1,650 +interest +tax over the course of the lease.
Besides, a good discount at 10k remains a good discount at 15k.
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Q5 Hybrids are being discounted this much?
From the dealer sheet, it shows $9,411.90 in rebates. Did you confirm whether that is accurate for your zip on the Edmunds Forum?
Using that info, your actual dealer discount is only $4,140. That is only 7.3% off MSRP.
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I’d say not a great deal. I’ve seen brokers offer better on these boards and I recently bought an SQ5 (MSRP $66k) for $611 after tax after AudiCare in CA. So take that for what you will.
The incentives alone on a Q5e should make this a much sweeter deal than you’re being offered. Should be close to ~10% off MSRP before any of that stuff comes into play, though.
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