The GM of that store posted 3 posts above yours… he has a deal thread too.
Hey so I just s/w Audi dealer in Philly suburbs. I went through the lease calculator just as advertised WITHOUT the MSD and for 7,500 @ 24mo and just tax title and license fees it was $1015/mo !!
I was blown away.
MSRP $75,000
Federal $7,500
Dealer $7,500 + $1,500
MF: 0.00173
RV: 57%
Sales tax 9%
And still $1015/mo ($915 for 36mo - I’m confused)
Can someone explain The Who what where when why???
Put the numbers in the calculator even without the security deposit it should be $480
Send the calculator link so we can see. If you’re trying to compare to other deals here you’re most likely missing the Costco incentive, which is 10% off MSRP (~7,500 or ~$300+ a month). Looks like you have the $7,500 marketing allowance and $1,500 might be loyalty or something similar, and $7,500 lease cash (federal EV tax credit).
I was able to get $595 with $0 DAS and 10 MSD on a $76370 MSRP about an hour and a half outside of Philadelphia area. Not a unicorn deal but certainly reasonable. They also took my lease in 12 months early. Keep calling around and focus on the dealerships that have over 5 in inventory. The ones that have 1 or 2 won’t play ball at all.
So I realize where I made the BIG mistake.
I was DOUBLE DIPPING (counting the $7500 federal and the $9000 dealer off of the MSRP and then again counting it as an incentive). The dealer was calculating the lease with all the numbers mentioned based on the sale price of the vehicle being $76,019. leasehackr.com/calculator?make=Audi&miles=7500&msd=0&msrp=76019&sales_price=76019&months=24&mf=0.00173&dp=0&dealer_fee=0&acq_fee=895&taxed_inc=9000&untaxed_inc=7500&rebate=0&resP=57®_fee=655&sales_tax=9&demo_mileage=0&memo=&zero_driveoff=true&monthlyTax_radio=true
Sorry to stir up drama! Thank you for everyone’s help!
JonathanM i’m going to reach out to surrounding areas like you suggested to see if anyone will drop the sale price. Audi Devon was unwilling to play
Appreciate the info!
What happens when the Costco incentive runs out. Does it turn into a buyers market?
I’m just wondering if it’s the most beneficial for the dealerships to get the E-Trons out the door now, even at aggressive discounts like OP got here.
We are selling 3-4 etrons a day now and I only have 48 left . I’ll be sold out by the month end . I think it’s the same for other dealers as well
Fair point, however, I think the CA market has the most buyers and the most aggressive deals.
Still doing only CA residents Sam? Asking for a friend
Curious if anyone considered buying E-Trons, especially those with businesses.
CONS:
1 - highly questionable market value in a few years (but then it’s already discounted very deeply)
2 - having to pay sales tax on the full purchase amount (see below for offsets)
PROS:
1 - Not having to pay $895 fee & sales tax on $7,500 Fed tax credit. That’s about $1,600 for LA or SF folks.
2 - Zero % interest up to 72 months, so the payment should not be drastically higher. Saves almost $3,300 using Alex’s deal here.
$4,900 in savings ($3,300 and $1,600 above) is about an equivalent of CA sales tax on +/- $50,000 depending on your county’s rate.
3 - Business owners can deduct up to 100% of the cost (limited to biz use %) on the 2019 Fed tax return. $25,000 Sec.179 deduction for CA.
Watch out for recapture if/when sold or put into personal use! Talk to your CPA if unsure what that means.
NEUTRAL:
1 - Fronting $7,500 tax credit instead of putting down MSD’s. Slightly higher but get back much sooner.
Any other considerations? Assuming sales and lease incentives are the same? @Samaudibh @DonnyAudi
Mods, fell free to move it to a separate thread if you feel that’s more appropriate.
What are the odds that Audi FS will let people extend their 24 mos leases at the same payment 2 years from now?
They’ll do it . Only for 6 months .
@Samaudibh, how about my other question - are the incentives on a purchase same as on a lease?
Can’t comment on all the other stuff, but you do “pay” sales tax on the federal tax credit, in the sense that you pay sales tax on the selling price of the car pre-tax incentive, and then get $7,500 back.
On a lease, if we’re being pedantic, technically you’re not paying tax on the $7,500 lease credit. The $7,500 is a credit that goes towards the drive-offs, but the agreed upon selling price of the car is before that incentive, so effectively you’re paying sales tax on that amount (hence the selection of “Taxed Incentives” on the Leasehackr Calculator).
@michael, correct you are! So, #1 drops back to $895 and #3 drops to about $42,500.
Still debating with self whether to get into pedantic vs semantic battle on your second point… but, yes, you are correct again… although I am not wrong either.
For number 3 youre still get the deduction just over a future period for every dollar out of pocket.
Yes, a MUCH smaller deduction though. Assuming 100% biz use (very aggressive and not likely) it is about $5K a year on a lease. You get much more on a purchase whether or not you elect to take a 100% bonus. Even if you go depreciation route, the limits for the first 3 years are $18,100, $16,100 and $9,700.
You also have a $25,000 Sec. 179 option for a heavy SUV (over 6,000 lbs GVWR).
Possible biggest consideration for some business owners might be their QBI deduction if they are in the phase out and need a large deduction to get back below the threshold. Especially since that may go away next year if Biden wins. Say a realtor, contractor or engineer who is making a killing this year.
You can always get a larger deduction if you spend more money lol. You’re getting to deduct every dollar you spend (assuming 100% usage) that’s all that matters. Your argument is just timing.
You are missing the point - there is ZERO percent interest for up to 72 months. You are able to deduct 100% while only putting down 10-20%. The DAS and monthly payments are about the same.