I’m approaching the end of my 2024 Audi Q8 e-tron lease and I’m looking for advice on how to navigate a significant negative equity situation.
The Numbers:
Current Payoff: $46,216
Market Value: ~$35,000
Location: Maryland
My Goals:
I love the “vault-like” quiet cabin of the Audi and want to stay in something similar (looking at the BMW i7, Mercedes EQS, or Lucid Air). However, I need to figure out the smartest way to handle this $11k gap.
Questions for the community:
Direct Buyout Negotiation: Has anyone had success getting Audi Financial to negotiate the buyout price directly? If not, have you successfully used a “Dealer-Assisted Buyout” where the dealer buys it from AFS at a lower market/dealer rate and sells it back to you (perhaps as a CPO)?
Negative Equity Strategies: For those who have navigated a $10k+ underwater lease, what are the best “non-math” ways to soften the blow?
Is it better to just “ground” the lease, pay the disposition fee, and walk away clean?
Are there specific brands/models right now with enough manufacturer rebates or “lease cash” to effectively bury this much negative equity?
Does Audi still offer a “Pull-Ahead” program that might waive some of this if I stay with the brand?
I’m in Maryland, where we pay full sales tax on the car value for leases, so I’m trying to decide if trading in to get a tax credit is worth the “rollover” headache.
Would appreciate any insights from those who have been in this position!
Don’t worry about being underwater. My RSGT is about $40k underwater, making me enjoy the lease more.
Getting a 24 lightly used Q8 for $35k is pretty good deal
I agree with @Justlooking - what is the issue (unless you are deciding against all advice on buying it out)?
You could be $100k underwater, but it is a lease so who cares? You will owe whatever miles you may be over on, any damage and a dispo fee and then you move on to the next ride.
buy a different CPO Q8 for market value with an extendable warranty, which will waive the disposition fee
Haven’t seen any reports of Audi negotiating buyout, in very rare instances on other brands where it was reported the captive bank sent the leasee an offer letter. If you are going to inquire AFS (who owns your car) is better to ask than any dealer, I’d call or message them through their website.
I already paid 6.5% tax on the full MSRP of the Audi ($80k+). If I just ground the lease, that tax money is 100% gone. Definitely not open to roll in negative equity, unless the math makes sense. If I trade in the car, I can subtract that already paid tax from the new car, but it only makes sense if buyout is reduced significantly.
They all speak the truth. Generally speaking, you didn’t put yourself in a position to be able to lease a Q8 in the first place by making financial moves that are less than smart.
Not sure about MD, but in FL they won’t even speak to you about a payoff quote, they refer you to the dealer to buy the car.
Also, 6.5% on an $80k car is about $5k. Think of it this way, you had the car for a couple of years and would have had to pay taxes on the monthly like everybody else. So let’s call it half of the $5k. So you’re arguing about $2500 in taxes, it’s no big deal and also, you can always move out of MD if you don’t like it.
Just wait for it to become available on the open market for much less, and then call whichever dealer owns it and buy it. Alternatively, just buy another one for sale with a similar spec if you love it so much should it not work out with AFS.
Bottom line…there is NO way you will be able to buy this car out or trade it on a new vehicle to absorb $11k of “negative equity” (which doesn’t exist) on a lease if you keep the car until the end of the term. As long as you are not over miles there is nothing really to discuss here.
As someone else said in this thread, that tax money is a sunk cost on a lease in MD. You just have to factor that into the “cost of doing business” leasing in MD. I’m in TX, our state taxes leases the same way.
