Deal Check: Audi E-tron GA lease

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Have an offer for a 67.5k msrp Audi e-tron for 36 months (first month waived), 10k miles/yr, 0 DAS, 665/month with taxes and fees.

Adjusted cap cost with fees:52,111
Tax total: 1376.11
MF: .00057/1.37% lending rate
Residual: 49%= 33,120

I think I feel pretty good about this, but wanted some unbiased opinions, since this is the first time I’ve ever done a lease.

Hackr score is only 9.2, but it seems like a pretty good deal to me… especially with the associated EV savings (50-70 bucks a month for our electricity prices and 8-10k miles a year)
Also, anything to be careful about if/when I go in to sign? Probably skipping audicare since it’s an EV…

Not sure what the breakout of the rebates/discounts are and how those totals fit into the 3 buckets of “%off msrp, taxed incentives, and untaxed incentives,” But this calc configuration came out with the right msrp, the right post tax monthly and the right residual, using the right MF.

If you want to properly evaluate the deal, youll want to break this out. An alternative approach is to set aside the offer for a moment and independently put together a target deal based on the current lease programs and researched pre-incentive discount targets. Then you’ll have something to compare against. It’s really difficult to effectively negotiate if you don’t have a hard goal of where you’re trying to get to.

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You need to verify buy rate MF on Edmunds- it’s significantly marked up.

(FYI, buy rate=.00017 MF). Since you did a LH calculator- that alone drops all in to $589. Add max MSDs, $575. You calculator seems a bit off with specifics to incentives in terms of taxed vs non-taxed. Ask Edmunds to see what your regional incentives are.

7.5% off pre-incentive is ok. Not sure how GA market is, but in CA, we are getting ~10-12% off pre-incentive.

Audi Care has 1% bump in RV. 2021s no longer have 1st service covered. Sure- no more oil changes and it’s a lot of inspections and what not, but year 2, brake fluid flush, and there is battery coolant exchange. You will need to have proof that your eTron was serviced as part of terms of AFS. If you plan to get serviced at Audi, price the services out and compare. Keep that in mind.

Look at some of the Audi brokers deal as a comparison to your deal. If you get buy rate MF and max MSDs, your deal will be better than it is.

Ok I think I found the incentives on edmunds.

Looks like there is 7750 in bonus cash, in addition to the lease bonus cash of 7500 equivalent to the EV credit for a total of 15250 in incentives? So I guess that means the dealer is only kicking in 1000 to the deal. Total fees are 750 (including a 600 dollar dealer service charge).

So maybe this is a more middle of the road deal than I thought? on the other hand, lending rate is only 1.37% (.00057) so maybe all in all it’s decent?

As for MSD, It didn’t seem to make sense to me to put in thousands of dollars frozen in an account when my other invesments (I keep almost no cash on hand, have annualized significantly higher than 10% over the last 10 years. ofc, I can’t expect that to keep going, but even at 6-8% expected ROI, MSD doesn’t seem to make sense when the interest rate is already so low… no?)

I would verify rv/mf/incentives by posting in the model specific forum on edmunds and asking for your zip. Their website based stuff can be inaccurate and/or confusing, and you want the rv/mf information anyway.

As mentioned above, your MF appears to be marked up, so a poor discount with a marked up MF is even worse.

I’m going to reiterate what I said above: for now, forget about this dealer offer. Step back and structure a target deal based off the confirmed rv/mf/incentives from the edmunds forum and a target pre-incentive discount amount based on comparison deals here. Start with 10% pre-incentive and adjust from there. You need to know where you’re trying to get to.

If this is actually $1000 pre-incentive discount and a .0004 marked up mf, then you’re essentially paying over MSRP as that mark up equates to more than $1000 in added cost.

Purchase APR is irrelevant to the leasing discussion.

The MF the dealer is quoting you is .00057, yes? From what @calbear was saying, buy rate is .00017, meaning the dealer has marked up the MF by about .0004. This results in a pre-tax increase of .0004*(52111+33120) = $34 per month, or $1227 over the life of the lease.

It’s important to differentiate between what Audi is doing and what the dealer is doing. The incentives from Audi are totally independent from anything the dealer is doing, so if Audi is knocking $15k off the car, the dealer isn’t involved at all. It’d be just like if Audi came out and said “hey, the MSRP on this is no longer $65k, it’s $50k.”

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I think you need to double check your incentives. I believe the 7750 is inclusive of the 7500 EV credit.

double checking haha. Lesson learned. Will check edmunds for buy rate MF, RV, and incentives first so I can clearly assess how much the dealer is marking up or down on the MF, and on the pre-incentive price.

Waiting to hear back from my query on edmunds. Thank you guys very, very much for setting me straight.

You’re probably right, although I do recall previous etron deals having a substantial dealer cash amount in addition to the 7500 incentive, so I wouldn’t be totally shocked if both existed.

Ok update:

MF: .00017
Incentives: 8500
Residual: 48%

My deal:
.00057MF, total adjustment of 16,221 but reduce this by 599, dealer fee, 750 total fee (but I bet the 150 is dmv related stuff). So 16,221-8500-750=6,971. But the dealer is getting about 1227 in margin from the difference in sell and buy MF which brings the discount to 5751 from the dealer. Which I can stomach as good, and not amazing.

HOWEVER, I just reran the numbers to verify myself. They must have made a mistake in their deal sheet… I hope it’s just a mistake…

MSRP: 67,590
CapCost before taxes, but inclusive of fees: 52,112
TAVT: 6.6% of lease total
MF: .00057

So 1.066 * ( (52,112-33,120)/36 + (52,112+33,120).00057 )=576.14 before taxes.
= 1.066
(576.14)= 614.16 a month with taxes and fees. But they’re telling me it comes out to 665…

hmmmm… am I paranoid, or is there something fishy here.

I don’t think any of the dealership sales teams in 2021 calculate by hand so this mistake is 99% going to be on your calculations.

I don’t believe you’re applying the taxes correctly. If memory serves, GA taxes are handled a bit oddly.

They’re definitely done up front, not on the monthly, and the rebates probably are taxed.

It used to be on the whole vehicle price, but in 2018 it got updated to just the lease amount.

Even their deal sheet says total tavt is 1376. So divide by 36 and it’s just under 40 bucks. Which is very close to what I calculated…

Can you post your deal sheet? Might help identify the discrepancy

You really missed the boat on these. Last September you could have had a loaded Prestige for the price of this barebones Premium

In any given month most cars do not lease well. This is truer now than it has ever been.

So unless you are willing to push this boulder uphill, you need to look at other makes/models that lease better and offer more value per dollar.

Check out the “Share a Deal” and “Marketplace” sections of LH forums to see what’s leasing well and narrow down your search.

I get pretty close to their numbers, depending on how the rebates are taxed/how the first month’s payment waiver is applied (this is an extra incentive amount)

Good point. I was tempted by bacon’s south florida deal on a prestige, but I really have little use for the additional packages (tried them out already); nice but I don’t want to pay for them. Maybe we should wait, but it’s hard to tell how long Audi will be under the quota for the EV tax credit. I don’t want to lose that for sure, and the 50-70 bucks in gas I would save per month.

There are some nice looking deals on some ICE suv’s though

I haven’t checked but I’d be shocked if Audi was anywhere close to having sold 200k EV in the US.

Your dealer worksheets shows 10k annual. Your LH calculator says 12k.

As a benchmark, in CA, Sam (BH) and Samantha (Fremont) are offering eTron Premium with Convenience package MSRP ~$71.4k, Driveoffs only, max MSDs for $499+ tax, 36/7500. (only for CA residents though)

Some of the brokers have deals are pretty close so considering looking at their deals.