Hi leasehackrs,
Currently Audi is running a LPA program and my lease is up in 3 months, so I’m considering to get an early upgrade from Q5 to Q7. My question is, is LPA considered an incentive or discount? In other words, do I negotiate down the % off MSRP first, and then have the dealer cover the last remaining 3 payments and add the loyalty incentive, or the LPA will be part of the % off MSRP?
Appreciate any insights!
A true pull ahead backed by the bank is completely separate and has no effect on your negotiation and discount
If a dealer says they’re pulling ahead and it’s not backed by the lender then it’s eating into your discount
The Audi program is a true pull ahead, which means you should negotiate the new car completely independent of your existing car. Once you reach a deal, the dealer will work with Audi FS to essentially make the remaining 3 payments on your existing car “go away”.
Some manufacturers have incentive programs that are worded like pull ahead programs, however in effect all they’re doing is proving an additional incentive equal to some multiple of your current payment. In these cases you would negotiate that as part of the new car deal.
Just be careful because sometime the pull ahead programs can’t be combined with rebates.
Very good point! Loyalty and pull ahead are not always combinable
In this case with Audi Program, are loyalty and pull ahead combineable?
No clue, but I have seen programs from Audi in the past where they are not.
EDIT: Doesn’t say you can’t combine them, so I imagine you can use both. From my local dealer’s website:
Audi Loyalty Pull-Ahead - Eligible customers will receive up to (3) remaining payments waived on their current AFS lease of any Audi model (excluding TDI, RS and R8). Scheduled lease maturity date between September 1st, 2020 and September 30th, 2021. For current eligible AFS lease customers, AFS will waive up to three (3) remaining payments on the current lease when the customer leases or purchases a New 2020 Audi A3 Sedan, S3, A4/S4, A6/S6, Q5/Q5 PHEV/SQ5, Q7/SQ7 or Q8/SQ8 through Audi Financial Services. Must take delivery by August 31st, 2020.
Audi Owner Loyalty - For an individual, member of an individual’s household, or business customer who currently owns or leases a MY2009 or newer Audi model (proof of ownership/ unexpired registration is required). Limit one incentive per eligible VIN. Audi of America, Inc. will pay $2,000 towards the purchase or lease of any new/unused MY2019 Audi model and $1,000 towards the purchase or lease of any new/unused MY2020 Audi model with Audi Financial Services using AFS Standard or Special Rates. No trade-in required. Offers are non-transferable. Not redeemable for cash. May not be combined with Conquest programs, Dealer Employee Mobility $2,000. Lease, Audi Customer Mobility Lease or Purchase Programs. Fleet leasing, fleet management or dealer-affiliated fleet companies are not eligible. Offer ends August 31st, 2020.
If you are a Costco member, there is a 10% pre-incentive on Audi’s through 9/30. Q7 is part of the promo, I do not believe Q5 is (you need to confirm). Loyalty applies. Plus $500-$750 Costco Shop Card.
The market is unfriendly right now. Dealers do NOT want your business IF you want an aggressive deal. Dealers have limited inventory so they are waiting for buyers/lessees willing to pay up some. If you don’t like the first few deals from the dealers you approach, pack it in and wait 3 months. If you see something interesting on here in the interim, be opportunistic.
Happy hunting.
Thanks @wam22! Following your research, I also checked a few local dealers’ websites and didn’t see any language that says can’t combine them, maybe it is a go.
You hit all the marks. Two dealers I contacted - one didn’t even bother to respond when asked if they can help me with a lease, albeit I got their contact through Costco Audi Sales event. The other rescinded their participation on all Q models hours after I contacted them and had begun discussing the specifics.
I wonder if getting a broker would be any better at this time, or wait but potentially miss out on the Audi event.
You can definitely combine the pull ahead program with any available incentives like Costco, loyalty, etc.
I have an SQ5 with 3 months left so have been shopping the same programs.
I think brokers are great options in this market. Inventory is tight. Normal market discount benchmarks do not apply. Heads up, lots of e-Tron activity if you are interested. Good NY brokers to chose from:
Great to hear! How’s your shopping been going? I haven’t had much luck so far.
Appreciate your insights and suggestions @824! I’d be all over these recent mouthwatering e-Tron deals, but the family has expanded so have to upgrade to a larger size. I’ve reached out to one of the brokers, awaiting a reply.