Hi, first time post here. Got this from a dealer for a 2024 Audi Q5 lease. I also have a 2021 Q3, its lease is done next April but I am already over miles and the negative equity is ~$4k. The dealer says the below includes the trade in. What are your thoughts, does this look good or can it be improved? Thanks!!
This is what I could do on one, if you add 4k in negative it comes out to be basically the same, which is weird given that my discount is a bit more, so are they actually saying it’s 4k negative? Also not sure where 2k lease cash is coming from, I see $1k Costco and $500 for eastern region.
I don’t have Costco and according to the dealer there is “Audi loyalty” in there. I got negative 4k equity from payoff minus residual. Maybe it makes more sense to not do the trade in and just continue to pay out the lease until the end (driving less in the process).
So it’s not necessarily that you have actual negative equity, it’s that you simply have $4000 left on the lease to pay?
Is your primary motivation for getting another lease right now b/c you’re already over the mile limit? How car over the mile limit do you think you will go by the end of the lease?
How much are you currently over miles and what is the over mileage charge?
@paranoidgarliclover sorry if I was unclear. My remaining payments total $2,640 ($440 x 6 months to go) and I got the “negative equity” from the dealer based on what the vehicle is worth now (somewhat subjective, I know) and the current payoff amount. You are correct, my main motivation is to get out of the current lease that is over milage. I actually started looking because the 2023 Q5s had a really good incentives that expire end of this month but no one seems to have any inventory left.
@IAC_Scott currently at almost 42k, the limit for the entire 42 month lease, over milage is $0.25
It looks more like it would cost you less to just pay all the remaining months and turn it in early versus 4k in negative equity. If you turn it in now, you’re technically not over mileage.
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Keep driving and in the meantime opportunistically watch out for deals in the Marketplace between December and March.
The quote in the OP is a hard pass.
@IAC_Scott Is that an option to turn in the lease early, would I go to the originating dealer for that?
That is also a fine approach but I want to get into a new car.
Could you elaborate on why the quote is not good and what would be some improvements? Thanks!
How come? You’re not turning the lease in early as a true pull ahead program (AFAIK). You’re selling the car to the dealership, no?
If you continue to drive at the same mileage rate and wait until the end of the lease to return the car, you’ll pay $1250 in excess mileage. There is no other “negative equity” on a full-term lease return (assuming the car has no damage).
$1250 is < $4K in “negative equity” (whatever that even means).
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The long story is that Q3 is too small and the incentives on 2023 Q5 are high and run through end of mont, so you could say the stars aligned.
If I do the “regular” lease return but I would pay $1,750 (7K miles assuming current pattern) + $395 lease termination, but still less than the $4K, you are right.
If it wasn’t too small for 36 months, how did it suddenly become too small for the last 6 months?
I don’t follow Audis very closely, but I think they’ve run Costco incentives multiple times this year. I don’t know if that’s always been the case. A $1K incentive isn’t worth very much when the dealer’s selling price is $2K above what a well-regarded broker here is offering to you.
Do you mean disposition fee? I assume that would be waived at lease end, if you get another Audi.
$800/mo is not an appealing price to me for this class of car, but only you can determine what you wish to pay.
The stars are definitely not aligned. If you’re calling $733 x 35 + $2,000 for a Q5 the definition of stars aligning, then your stars must hate you.
Q5 programs are mediocre overall, regardless of what one line item looks like.
If it wasn’t too small for 36 months, how did it suddenly become too small for the last 6 months?
Is it beyond imagination that I suddenly gained weight?
Lease contract says “termination fee” but I suppose that is same as disposition.
Have you tested-driven the Q5? I’ve not been in a Q3, but the Q5 felt surprisingly confining (and I am not overweight). But, if you’ve tested it and it works for you, then it is what it is.
No, but is it beyond your imagination that your Q5 incentives will be wiped out by your negative equity?
P.S. there is nothing wrong with just wanting a new car, obv.
have you tried selling your car to a different Audi dealer?
Just because these guys tell you it has negative equity doesn’t mean it’s true.
I did just that a few months ago. They paid me slightly over my payoff and they turned it around and posted it on their website for $3k more than next day and then it was sold shortly after.
Unless you have 3 quotes from Audi dealers on what they’re willing to pay for your car, I don’t think you have a good grasp on equity or lack thereof.
If you could sell it now, even at a slight loss to a different dealer, you’d solve the disposition fee problem, the over milage problem, and you don’t muddy the waters for buying a different car.
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