I’m looking to lease a 2021 Q5 PHEV and starting to chat with some dealers about prices. I’m turning in my 2018 A3 e-tron lease a few months early (ends in March 2021). I leased the A3 on the West Coast and moved back home to the East coast. Let’s just say that the A3 is not fun in the snow. The pay off for the car is about $22k, which is also about the estimated value. The car also has 17k miles on it and in great condition.
First, I’m not taking this deal. I could not get all of the details for some reason, but I told the salesperson I was looking to not put money down, but would pay all fees up front. I got most of the details captured below, but the expected at least $500 down. Whatever. Note, the calculator link includes some guesstimates on the deal feels that was not presented.
Now I left off the drive-off price out of the los as the paper I have said $10,212, which I’m gonna hope is a typo because that’s insane. Looking at this, the two spots jump out in need of improvement are the MF and getting visibility into the dealer fees. Working with the calculator, there seems to be an additional $2,100 somewhere that’s being rolled into the cost (I guessed at this in the calculator link, put it unto dealer fees). I am assuming that my current lease is under water and they are just rolling the loss into this lease deal? If so, probably best to hold off until March.
That selling price looks suspiciously like $11909 less than the msrp, meaning if those aren’t he incentives, this is a full sticker price deal. Add in several thousands in negative equity, and it wouldn’t shock me if that drive off was correct.
The MF and the dealer fees are the least of your concerns here.
Another dealer is offering $587 with $0 down and MSRP of $57,415.00. Slightly lower trim, but it had all the features I’m interested in, and I was able to actually test drive the vehicle as they had it on the lot. I wasn’t able to get more specific details because of fear that I would be “shopping around”, which I am. The guys seems desperate to move on it. The deal seems reasonable, especially after looking at some of the deals folks have received on non-PHEV models.
I’m actually working on getting those details now. Based on some more research, the MF should be around 0.0013, residual about 53% and total incentives right now would be at least $8,462. What I’m proposing to this dealer is the following:
I think if they come in around that, it’s a reasonable deal. Keep in mind that I am fully aware that I am paying a premium for the PHEV, but that’s what I want.
And BTW, thanks for pointing out that the first deal was not based on the selling price. This is the first time I’m applying the tricks in this site and so far it’s working.
The current dealer has the vehicle on the lot an seems desperate to get it off it. We’ll see what happens next.
You really don’t want to have any “about” values here. Having current, accurate information for residual value, money factor, and incentives is important in understanding you deal. As such, going directly to a source that has access to that data from the captive banks is your best option. The forums at Edmunds are where we go to get that information, as they have direct access to it from the captive banks. You’ll want to post of the model specific thread for the vehicle you’re interested in and request the most current numbers for your zip code. It is often easiest to find that thread by searching Google for “Edmunds lease” followed by the model of vehicle you’re interested in.
Newbie here. Is it reasonable to believe that a full purchase price in cash outright would be no different than the “Selling Price” used for the lease payment calculations? Otherwise, would it be lower, or higher?
Is that is because the dealer still owns the car and keeps the incentives themselves? If that is so, than the Selling Price here which is only $3560 below MSRP doesn’t get the full federal tax benefit, which for the Q5 55 TFSIe is like $6.7K.
The dealer doesn’t own the car or keep the incentive. There are different incentives often offered depending on if you’re leasing or purchasing. If you back them all out, then the pre-incentive discount generally applies in either case.
Advertised prices generally have some amount of incentives included in them.
Personally, I pay very little attention to dealer advertised prices. I just leased an audi today and I haven’t the slightest clue what the dealer was advertising the vehicle for. I never looked or asked.
