How does Audi compete with Mercedes or BMW if they lease so badly?

mercedes-benz
audi
bmw

#1

Please enlighten me dear hackers. Everyone and their mother on here says Audi lease horribly, but then how do they stay in business considering most people who are shopping in the German luxury segment leases?


#2

two word – deep wallets


#3

Porsche, Range Rover, and many others lease terribly as well.

I would assume most are business owners who can write it off as an expense, at least a portion of it.


#4

So whats stopping Audi from making their vehicles lease better? Company philosophy?


#5

why would u want to devalue the brand – premium car for the premium buyer

go buy a vw if u cant afford a audi


#6

Do they really lease horribly?

A Q5 is currently leasing better than a GLC, the SQ5 much better than the GLC43, which better tech to boot.

The S5 can be had significantly cheaper than the C43 and competitve with the 440i.

The RS5 is priced similar to the C63 and there are signifcantly less of them on the road than M4’s and once you spec a M4 to include the comp package so that you’re comparing apples to apples, you’re starting to get closer to the same price range.

You can’t take a broad statement like “Audi’s lease terribly” and expect it to be true across the board. Sometimes they lease better than the competition, and sometimes they lease worse.


#7

Not everyone leases, nor is everyone educated on the intricacies of a lease.


#8

I personally dont but that seems to be the general consensus around here.


#9

isn’t their residual value bad?


#10

You’re looking at a mere fraction of the buying public here, on a lease geared forum. Your analysis is going to be biased.


#11

Majority of people have no clue about leasing and as long as you can make payments it’s all good …it’s the American way


#12

yeah as per above and cars are not rational purchases. Especially the German brands. People will pay what they want to pay for what they want. Plus I think a lot of people are ‘happy’ putting down reasonably hefty down payments to get their monthly down. Most people either don’t know/want to know the implications of that.


#13

Bad residuals I have seen are Jaguars - 47% !


#14

Last time I saw residuals for the VW e-Golf it was in the low 30% range.

The Buick TourX wagon is in the low 40% range.


#15

You call it philosophy, they call it risk management. Being aggressive with RV can be very risky. You don’t want a ton of underwater cars coming back to you at lease end.

Subsidizing the MF is also costly.


#16

What makes you think Audi isn’t satisfied with their lease penetration? Because the people on this board say “they don’t lease well?”


#17

to the majority of people who lease they are probably cheaper than bmw/mercedes. one of my customers owns a ford dealership in MA and she’s always asking about my cars and what I paid. She said probably 90% of the people who come in to lease have no idea that you can negotiate a lease and just take whatever price they are told. She also said they do lots of advertising so people just ask for the “deals” that they see in the newspaper or on the website and that way they believe they got a great deal. When I started getting prices on a 68k x5 all the dealers first numbers came back around 950/month with 2-3k down, obviously that’s way over what an informed customer from here would pay but I’m sure there’s no shortage of people who will pay that. So if you consider the fact most people just pay what the dealer’s first number is then someone going to Audi and getting a q7 for 850/month is a bargain.


#18

I’ve been leasing German cars for the past 10 years or so and Audi had always leased worse than bmw and mb.

Maybe about 2-3 years ago the Benz and bmw leases got worse, and audi’s got slightly better.

Now, overall, they lease all about the same. No msd for bmw really hurts. Also, as someone mentioned, you can actually get decent deals on desirable Audis (ie. not loaner A4’s) such as the sq5, which leases far better than the mb and bmw equivalent.

Basically, the notion of Audi leasing any worse than Mercedes and bmw is dead.


#19

As a premium brand they also can use leasing as the “cheap” alternative to financing once they use some smelling salts to wake up a potential buyer after passing out on the showroom floor from seeing the monthly finance payments/cash down.


#20

Does that apply to their performance sedans too? Will s/rs lease better than amg or m?