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Audi Q7 Lease Questions

CarMan@EdmundsCarMan@Edmunds Posts: 38,515
Hi everyone. Please use the following discussion to post any questions that you have about leasing an Audi Q7. Thanks.

Car_man
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  • trabd123trabd123 Posts: 37
    Hi Car_man,
    The Audi dealer in NY faxed me the following lease numbers two months ago for an Audi Q7 4.2:

    12k/36 months: $735.13
    10k/36 months: $720.61
    MSRP: $54,520

    The initial payment includes: $575 Bank Fee, 1st Month Payment, MV Fees and NY taxes.
    NOTE: AUDI HAS WAIVED SECURITY DEPOSIT OF LEASES CONTRACTED BY 5/31/06.

    This car has the Technology package, 4 zone climate control and XM Satellite Radio.

    I think he came up with the numbers above based on the A6 3.2q lease numbers. Do these numbers make any sense to you and am I getting a good deal here?

    Thanks,
    TARBD123
  • rbirns1rbirns1 Posts: 211
    Which Audi dealer was this? What availability do they have or expect to have? In other words, when can you have that car they quoted?
  • CarMan@EdmundsCarMan@Edmunds Posts: 38,515
    Welcome to this new discussion, trabd123. Audi Financial Services' current buy rate lease money factor and residual value for a 36 month, 12,000 mile per year lease of a 2007 Audi Q7 4.2 are .00115 and 58%, respectively. The money factor for a lease with only 10,000 miles per year would be the same, but the residual value would increase to 59%. The selling price of the Q7 that you want will depend upon its selling price. Since this is a brand new model that just began to trickle into dealers, for now I will assume that you are paying full MSRP for the one that you want. Correct me if I am wrong. According to my calculations, if you were to lease a 2007 Audi Q7 4.2 with an MSRP and a selling price of $54,520 through Audi Financial Services right now for 36 months with 12,000 miles per year, your zero down, pre-tax monthly payment should be around $736. The payment for an identical lease with only 10,000 miles per year would drop to around $721. As you can see, the payments that I came up with are right in line with the ones that you were quoted. I am sure that you would be able to get this truck for well below full MSRP if you waited a few months to get one, but if you want to be the first on the block to have a Q7 you will have to pay more.

    Car_man
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  • trabd123trabd123 Posts: 37
    Thanks very much for this valuable info. The lease of my BMW x5 will terminate by the beginning of next month and I need a 7 seats car. I have to choose between either lease an Audi Q7, buy 06 Cadillac Escalade or extend my current BMW x5 lease for another six month to get into the Audi Q7 or the new BMW x5. What do you think the best choice?

    Thanks,
    trabd123
  • dhamiltondhamilton Posts: 873
    a huge Audi fan. That said I might be a little leery of any first year German model. I think if you have a good relationship with the dealer this can nullify that issue. The other thing is that I wouldn't expect much if any discount on this new model.
    Having said all that I would still buy the Q7 over any other model in it's category. I have been to the Audi mountain, and the mountain is good. I suggest trying to extend the lease on your X5 and see what things look like in 6 months. I have driven both the Q7 and the escalade and their is no comparison IMO.
    Whatever you do, good luck and let us know how you did.
  • trabd123trabd123 Posts: 37
    from the dealer today. No discount will be given on the Q7 until Sept. or maybe later if Q7 sales go well in the next few months. Also, my wife wasn't so happy about the 3rd row seat. It's designed for young kids or anyone around 5'3". We are completely changing gears now and leasing an Audi A6 3.2q. We're getting a $675 a month (taxes in payment) for 12k/36 months with only first payment and bank fee up front. The MF and RS are 0.000611 and 53% and the sell price is $46,100 for an MSRP of 49,160. The sell price includes a $1000 loyalty for BMW customer. What do you think of this lease number?

    Thanks,
    TRABD123
  • rbirns1rbirns1 Posts: 211
    What bothers me about the third row seat is not so much the legroom (most of these SUV third rows are only good for kids or short trips for small adults). The problem I see is that with the third row up, there is almost no trunk space behind that row. The headrests are within a couple inches of the tailgate (questionable safety?). My XC90 has a useable area (about 18" deep) back there when the third row is in use.
  • CarMan@EdmundsCarMan@Edmunds Posts: 38,515
    You're very welcome, trabd123. I don't know if you have seen the Q7 in person yet, but if you haven't you definitely should check it out. Most Audi dealers just started to get them in a couple of weeks ago. It is a very nice truck. Its current lease program is very similar to the one that BMW is running on the '06 X5, so which one is more expensive will all boil down to price. In your post you mentioned the 2006 Cadillac Escalade, however I personally would much rather have the redesigned 2007 Escalade. It is a really nice truck and a dramatic improvement over the '06 model, which already was a pretty good vehicle. You really can't go wrong with the Q7, X5, or '07 Escalade. They're all nice trucks.

    Car_man
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  • tlevytlevy Posts: 1
    Is the Money Factor still .00115 today (5-27-06)at Audi Financial?
  • bwedotnetbwedotnet Posts: 48
    Can anyone confirm the Audi money factor and residuals (36mo/15K) for June 2006? Will be picking up my Q7 in a couple of weeks and would like to run the numbers. Thanks.
  • anumoluanumolu Posts: 11
    Is it the right time if looking for a good deal on the Audi Q7 or wait for few more months?. I asked the dealer to work and let me know if $3500/down + $599/mth on a $54,520 can be do-able on 15k/yr for a 36m lease, I think the above may go up to $100/mth more lets see. They have given me a drive appointment this Wed 6/7/06, Had I really liked the vehicle and want to get it now, whats the best leasing payments you would suggest?. pls let me know.
  • bwedotnetbwedotnet Posts: 48
    Hi Anumolu:

    I am no expert but $599/mo seems optimistic. I ran the numbers on a $55K purchase price 0.00117 money factor, $3000 down, 56% residual (36mo/15K). The monthly rate was approx $790 including tax. $733 before taxes.

    NOTES:
    1. Assumes MSRP = Purchase Price. I doubt you'll get a discount off of MSRP right now
    2. Money Factor assumes 2.8% Audi special lease rate is still valid for June
  • CarMan@EdmundsCarMan@Edmunds Posts: 38,515
    Yes, Audi Financial Services' .00115 money factor for the 2007 Q7 is good through July 5th.

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  • CarMan@EdmundsCarMan@Edmunds Posts: 38,515
    Hello bwedotnet. If you were to lease a 2007 Audi Q7 4.2L (not the Premium model) through Audi Financial Services right now for 36 months with 15,000 miles per year, its buy rate lease money factor and residual value should be .00115 and 56%, respectively.

    Car_man
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  • CarMan@EdmundsCarMan@Edmunds Posts: 38,515
    Hi anumolu. I don't think that the first couple of months after a brand new model is introduced is ever the best time to get a good deal. Dealers try to hold onto their grosses on new models for as long as possible. Having said this, Audi's lease program for the Q7 isn't bad. So if you are able to find a dealer that will give you one for a reasonable price, leasing one right now is not that bad. Rather than focusing on the payment for the Q7 that you want, focus on the two negotiable aspects of your deal - this truck's selling price and the money factor that is used to calculate its lease payment. If you negotiate an attractive selling price and use its buy rate lease money factor, its payment will take care of itself. FYI, Audi Financial Services' current buy rate lease money factor for the '07 Q7 is .00115.

    Car_man
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  • bwedotnetbwedotnet Posts: 48
    Hi Car_man:

    Thanks a lot for confirming. I am scheduled to pick my Q7 up in a week or so. I'll let you know how it goes.
  • wadamspadwadamspad Posts: 1
    Although pricing has not yet been released on the Q7 3.6 FSI, any speculation on what residual values/money factors for standard and premium versions will look like? Especially as compared to the 4.2 FSI numbers -- higher/lower RV's, same MF's, etc...

    Also, what would be the best way to negotiate on 3.6 pre-orders at this point?
  • rjlaerorjlaero Posts: 659
    I doubt you're going to get any substantial discount off a 3.6 in the next 6 months. With limited production of the V6's, they'll probably be in short supply for a while as they come in the late summer/early fall.

    The 3.6's may indeed be more popular than the 4.2's in some parts of the country with the way gas prices are, and just overall cost of the 3.6's probably being 5-6k less expensive.

    It's hard to say as nobody has driven a 3.6 yet, and how they'll be in power department. I think that's the biggest factor in how they'll sell.
  • anumoluanumolu Posts: 11
    Thank you "car_man & bwedotnet". heres the deal I got from the dealer and Q7 is to go. NoDiscount-SP=$58,770 , $5000 down, $590/m, 12k/y on 36m lease. Based on your suggested numbers I think I got a reasonable deal. I am working on 15K/y bargain for a $30 more instead. Lets see...
    Now comming to test drive experience and looks, I enjoyed the driving feel of Mercedes GL450 than this Audi Q7. However the interior, exterior, pickup of Audi while changing lanes on highway seemed lot better to me. Overall based on the deal I got from the dealer I am inclined for the Audi Q7 deal. Before I go ahead, Can one you give me your final suggestion pls, will highly appreciate it.
  • rbirns1rbirns1 Posts: 211
    My suggestion: never put money down on a lease. One of the worst financial moves you can make.
  • bwedotnetbwedotnet Posts: 48
    Hi Anumolu:

    My only feedback would be to not put down such a large deposit. There are many reasons for this which have been discussed many times on the numerous Edmunds 'Lease Questions' forums.

    I know it is nice to have lower monthly payments but it really is just an illusion since you are basically just 'prepaying' the incremental difference in payment compared to if you put $0 down.

    I have not driven the GL but my sister-in-law has one and thinks it is great. The GL styling does nothing for me however. It's just another boxy (but nice) SUV.
  • anumoluanumolu Posts: 11
    I will buy that suggestion on lowering the down $ to 1400/-so that total monthly is $690/- for 12K/Year. what do you think about the deal, impressive or have I some room left for bargain?. If the Dealer can work it out I am thinking to commit for $1400 down, $715/m , 15K/Year, not sure yet.
  • gosharksgosharks Posts: 2
    If we assume agreed sales prices will drop in time, doesn't it make more sense to lease than to purchase at this time, and pay an agreed depreciation; then later renegotiate the residual value when the lease matures, and production has caught up with demand? Unless of course you have no interest in keeping the vehicle, in which case all that matters is the difference between the capitalized cost and the residual value.
    Please correct me if I'm mistaken. For example, does the predicted residual value change (higher percent) as the average captilized cost drops? This would result of course in equalizing RV across the sales period. Sorry if this is too confusing.
  • rbirns1rbirns1 Posts: 211
    You're not getting the point. Do not put down any money on a lease.

    Take that $1400 and put it in an account somewhere (bank, mutual fund, whatever). Your lease payment will be about $40 higher. You can take the $40 from the account every month to make the car payment. At the end of the lease, the account should have a little left from the interest you earned.

    Main reason to do this is in case that lease doesn't go to maturity. If your car is stolen or totalled, that down payment is stolen with it. Same problem if you want to get out of the lease early.

    Never, ever, put money down on a lease. There is absolutely no good reason to do so.
  • bwedotnetbwedotnet Posts: 48
    OK, I am picking up my Q7 later today. Here's the lease deal I was offered (after I haggled a bit):

    Term/Miles: 36/15K
    MF: 0.00125
    Residual: 56%
    MSRP/Price Paid: $54070
    Inception Fees: $1929
    Downpayment: $0 ($0 drive off)
    Monthly Lease Payment: $824.13 + tax (~$73/mo)

    It seems like a fair deal. I will post dealer details and recommendations after I close the deal.
  • rbirns1rbirns1 Posts: 211
    What are "Inception Fees"? $1929 sounds pretty steep for the usual bank fee, registration, etc.
  • bwedotnetbwedotnet Posts: 48
    Hi:

    I had the dealer break down the inception fees, everything was inline with what it should be. Keep in mind it includes the first month payment. My drive off was $0 (the only way to go).

    Final deal details:

    Term: 36/15K
    MSRP/Price: $54070/$54070 (no discount off MSRP of course)
    Inception Fees: $2003
    Residual: 56% ($30279)
    MF: 0.0125 (3%)
    Drive-off: $0
    Total payment with taxes (7.75%): $888/mo

    All in all I am happy with the deal and the wife loves the car (it is an awesome vehicle).
  • bwedotnetbwedotnet Posts: 48
    EDIT: the MF was 0.00125 not 0.0125.
  • CarMan@EdmundsCarMan@Edmunds Posts: 38,515
    You've very welcome, bwedotnet. Talk to you then.

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  • CarMan@EdmundsCarMan@Edmunds Posts: 38,515
    Hi anumolu. You never mentioned this car's MSRP. This is an important number because it shows if you are bring given any sort of discount and it will enable me to calculate what its monthly payment should be using Audi's actual lease program. For now I can tell you that $5,000 is way too much money to put down when leasing. If your leased Q7 is totaled in an accident or stolen and never recovered, your down payment essentially disappears. You can and should lease this truck without making any sort of capitalized cost reduction.

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