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Audi Q7 Lease Questions

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Comments

  • vtraudtvtraudt Posts: 52
    I have been following the discussion on leasing rates for Audi Q7.

    Could someone take the time to explain to a total newby what all leasing terms mean (I kind of understand residual percentage; but what is money factor).

    I am going to lease a Q7, trying to get a 4.2. My budget is $700/months for 36 months, 15000/year, zero down. I figure an MSRP of $60-62k should fit that budget?

    And where is a good place to look up the dealer invoice?

    Ideally, I would like to configure my car, then use the info published here (money factor, residual, MSRP) to massage it until I am close to my budget. Then approach the dealer to quote/find the car.

    Volker
  • vtraudtvtraudt Posts: 52
    Trying to understand the lingo and math of leasing. I found the following example calc. Does that work?

    Example Calculation Using the Leasing Formula

    Let's assume you've decided on 3-year (36 month term) lease of a Toyota Camry XLE that has a sticker price of $24,600 (MSRP).

    You've managed to negotiate the price down to $23,000 (Cap Cost). You decide not to make a down payment, but you have a trade-in worth $5000. Your Net Cap Cost is therefore $23,000 - $5000 = $18,000.

    Now, the dealer tells you (because you asked) that the Money Factor is .00375 (.00375 x 2400 = 9.0%) and the Residual Percentage is 60% of MSRP. So your Residual amount, in dollars, is .60 x $24,600 = $14,760.

    Now let's do the math:

    Depreciation Fee = ( $18,000 – $14,760 ) ÷ 36 = $90.00

    Finance Fee = ( $18,000 + $14,760 ) × .00375 = $122.85

    —

    Monthly Lease Payment = $90.00 + $122.85 = $212.85
    (sales tax not included)

    Please comment on the above example.

    I am going to lease a Q7, budget is $700/months, 36 months, 15,000 mls/year, zero down. Trying to get a 4.2 w/ 20 inch, sunroof, backupcamera, or 4.2 premium.

    What would be the factors I should use. Obviously MSRP (I figure $60-62 should get me there), negotiated price (how much should I deduct? Is 5% possible?), what money factor should I use? What residual?

    I am in the Lansing/Ann Arbor/West Detroit area.

    Where to go to find out the dealer invoice?

    Thanks for your help for a lease newbie.

    Volker
  • vtraudtvtraudt Posts: 52
    I have put the above math into an excel sheet and run my own example (please comment on the feasability of my numbers):

    Car Audi Q7 4.2
    Lease time 36 months
    mile/yeara 15000
    MSRP 62000
    Negotiated 58000
    Residual 53 %
    Redidual 32860 $
    Money Factor 0.00038
    APR 0.912 %
    Downpayment 0

    Net Cap Cost 58000

    Depreciationg Fee $698.33

    Finance Fee $34.53

    Monthly lease payment $732.86

    Please comment/correct.

    Volker
  • ny_driverny_driver Posts: 18
    I think an earlier post indicated the current money factor for a 4.2 non premium is at .0007 and the residual is only 50%. This will increase your finance fee slightly and depreciation cost. The rates are still subsidized by Audi but the residual is low.

    Also, with no money down, you are capitalizing your taxes and all the other fees that a dealer would tack on (Reg, docs, prep, acq fee) which can be a few bucks.

    Good luck,
  • vtraudtvtraudt Posts: 52
    Do you also remember the money factor and residual for 4.2 premium?

    Volker
  • mikeoc1mikeoc1 Posts: 46
    Your expectations are unreasonable. First of all, you have very little chance of getting $4,000 off of MSRP. Second, the residual value is not 53%, it's no higher than 51% right now (52% if you add AudiCare). Third, you are forgetting taxes. A $55,000 3.6 Premium will run you at least $750/month including taxes. You'll be close to $800/month if not over for a $60k+ car.
    Zero down just means that there is no cap cost reduction. Expect to pay about $1700 (including 1st month) out the door.

    Go to www.edmunds.com to get the invoice pricing.
  • mikeoc1mikeoc1 Posts: 46
    Make the residual value 50% and try again. Then add taxes. Probably add at least $1000 to the cap cost as well.
  • ny_driverny_driver Posts: 18
    I dont know, but I remembered earlier this year, 4.2 non-premium and premium had the same money factor but I think the premium had a lower residual percentage.
  • clarkuclarku Posts: 14
    A local dealer has a '07 3.6 prem demo with 5,300 miles offering a discount from MSRP of $6k. What sort of discount from sticker would be fair/appropriate?
  • I personally would want way more than that. You can already get 3k off on a new one. So for an extra $3k you are getting a car that has been pounded on by one of the employees and I would think that the car takes more than the $3k in depreciation as it leaves the lot.

    aH
  • rjlaerorjlaero Posts: 659
    Yeah, but if you can certify that car and get the 6/100k warranty, it wouldn't be a bad deal.
  • CarMan@EdmundsCarMan@Edmunds Posts: 38,515
    You're welcome, jregan03. Audi Financial Services' residual values for leases with 12,000 miles per year are 2% higher than its 15,000 mile per year residuals. Its 10,000 mile per year residuals are 3% higher than the 15k residuals.

    Car_man
    Host
    Prices Paid Forum
  • CarMan@EdmundsCarMan@Edmunds Posts: 38,515
    Welcome rmosley001. Generally speaking, dealers are usually willing to give consumers better deals on vehicles that they already have in stock than they are on ordered vehicles. There are two main reasons for this. The first is that dealers are constantly paying floorplan interest on the vehicles that they have in inventory. The sooner they sell the vehicles that they have, the sooner they can stop paying interest on them. The second reason is the old proverb a bird in hand is worth two in the bush. A lot can happen to spoil a deal between the time that an order is placed and when the consumer actually takes delivery. Dealers would always rather finalize a deal ASAP and put it in the books rather than risk losing it. This is not to say that you won't be able to negotiate a good deal on an ordered Audi Q7, just that this is often what happens.

    Audi Financial Services charges a $575 acquisition fee on every vehicle that it leases. Individual dealers do not have the authority to waive this charge. The dealer fee is a different story. This essentially is a way for the dealer that you are working with to add additional profit to your deal. Make sure to take it into account as part of your truck's total price when you negotiate its selling price. If the total selling price of the Q7 that you want is less than or similar to what you would have to pay for it at another dealer it doesn't really matter how the deal breaks down.

    I always find that savvy consumers who live in areas that have a decent level of competition can beat the TMV price pretty easily. Try stopping by the following discussion to see how much other community members have paid for similar vehicles lately: "Audi Q7: Prices Paid & Buying Experience".

    Car_man
    Host
    Prices Paid Forum
  • CarMan@EdmundsCarMan@Edmunds Posts: 38,515
    Hey jregan03. Audi's lease program for the Q7 varies by term and mileage allowance. For now I will assume that you are interested in a 36 month lease with 15,000 miles per year. Let me know if you want something different. Audi Financial Services' current buy rate lease money factor and residual value for a 36 month lease of a 2007 Q7 3.6 Premium with 15,000 miles per year are .00038 and 51%, respectively. The numbers for an otherwise identical lease of a Q7 4.2L Non-Premium model are .00070 and 50%.

    Car_man
    Host
    Prices Paid Forum
  • CarMan@EdmundsCarMan@Edmunds Posts: 38,515
    Hi alexc561. The money factor that was used to calculate your lease payment is right in line with Audi Financial Services' current buy rate for the 2007 Q7 3.6 Premium. I would be happy to give you my opinion of this deal, but you never mentioned your truck's selling price. This number will show me how much of a discount you were given and help me to tell how good this deal is. If you let me know what your selling price was, I'll tell you what I think.

    Car_man
    Host
    Prices Paid Forum
  • CarMan@EdmundsCarMan@Edmunds Posts: 38,515
    Hi alexc561. The money factor that was used to calculate your lease payment is right in line with Audi Financial Services' current buy rate for the 2007 Q7 3.6 Premium. I would be happy to give you my opinion of this deal, but you never mentioned your truck's selling price. This number will show me how much of a discount you were given and help me to tell how good this deal is. If you let me know what your selling price was, I'll tell you what I think.

    Car_man
    Host
    Prices Paid Forum
  • CarMan@EdmundsCarMan@Edmunds Posts: 38,515
    Welcome Volker. Since you are new to the world of leasing, you definitely should check out the following informative articles that are available here at Edmunds.com prior to visiting any dealers: 10 Steps to Leasing a New Car and Calculate Your Own Lease Payment. As far as what all those lease terms that you see being thrown around go, you can find out what them mean by reading the following article: Edmunds.com Leasing Glossary.

    You can find this truck's dealer invoice price by looking it up in the New Vehicle Pricing section of this site.

    Car_man
    Host
    Prices Paid Forum
  • CarMan@EdmundsCarMan@Edmunds Posts: 38,515
    Vtraudt, Audi Financial Services' buy rate lease money factor and residual value for a 36 month lease of a 2007 Audi Q7 4.2L Premium with 15,000 miles per year are .00070 and 48%, respectively.

    Car_man
    Host
    Prices Paid Forum
  • aveghteaveghte Posts: 68
    Are the money factors and residual the same for 36 months and 15K miles a year if the Q7 3.6 Premium is delivered with the Technology and Infotainment packages? I heard that sometimes the residual is lower when options like NAV systems are included.

    Also is the new Advanced Key for the Q7 more reliable than this feature for the Audi A6 2-3 years ago? I see several reports of problems with the Advanced Key on the Audi A6 forums.
  • vtraudtvtraudt Posts: 52
    Since quite a while, my check engine light is on.
    Today, I used the key and odo button method and wrote down the following error codes with description from one source:

    P0403 Exhaust Gas Recirculation (EGR) Solenoid Control Circuit
    P0442 Evaporative Emission (EVAP) System Small Leak Detected
    P0455 Evaporative Emission (EVAP) System Leak Detected
    P1684 Driver 5 Line 4

    Ohter source:

    403 An problem was detected in the EGR solenoid control circuit.
    442 A leak has been detected in the evaporative system!
    455 A large leak has been detected in the evaporative system!
    1684 The battery has been disconnected within the last 50 starts.

    1) 0403: seems something in the EGR solenoid area.
    2) 0442. 0445: both deal with leak in evaporative system. What is the evaporative system? The A/C?
    3) 1684: battery was for sure not disconnect within last 50 start. Ohter code Driver 5 Line 4 does not tell me anything.

    I would like to tackle the issue, and would appreciate tips and instructions.

    Volker
  • alexc561alexc561 Posts: 2
    Hi Car_man:

    Just looking over the lease contract ... paid 43555 + 550 for audi care totals 44105 gross cap cost. 125.49 of cap cost reduction (collected in the 2k) = 43979.51 adjusted cap cost with residual of 26020.50.
  • hspderhspder Posts: 13
    Question:

    Would it be at all possible and what would be the residual value -- or "extra miles" cost -- of a 36 month, 90,000 miles lease (i.e., 30k mi / yr) of a Q7 4.2 Premium?
  • mikeoc1mikeoc1 Posts: 46
    I am all but positive that it would be impossible to do a lease like that. You could do a 45,000 mile lease and pay the excess wear and tear of probably 20 or 25 cents per mile. So that's $9000 - $12000 at the end of the lease.

    Doing something like that also means that you will be leasing a car (meaning you don't own it) that eventually will be out of warranty. You will change the tires several times. You will pay a lot for maintenance for a car that you don't own.

    My suggestion, as I actually did this, is lease the car you really want (Q7), and then buy yourself a used Honda Civic to eat the miles.
  • soc_fanssoc_fans Posts: 5
    Has anyone recently leased a Q7 4.2 Premium? What kind of deal are you getting from your dealer?
  • audimomaudimom Posts: 3
    I just got a quote on a Q7 3.6 premium, added options brought MSRP to $50,110. Selling price is $48,200 and then I added Sirius. 36 month lease, $0 down with 15k/yr for $661 + tax.

    Is this a good lease?
  • hspderhspder Posts: 13
    That is a superb deal that AFS is doing on the 3.6 Premiums. You're basically paying close to zero interest, so you're paying almost only depreciation. Can't get any better than that. $2k off MSRP is also pretty good.

    Go for it!
  • I'm negotiating a 3 yr.lease, 15K miles per year on an Audi Q7, 3.6 Premium. The worksheet gievn to me by the dealer shows a money factor of .00064, but someone else told me that the current money factor is actually .00034. Is this inoformation posted anywhere, or can anyone verify the current money factor?
  • 1nydoc1nydoc Posts: 1
    Which dealership and in what state did you get this quote from?
  • Audi Willow Grove in Pennsylvania. After I questioned my salesman about it, he lowered the money factor to .00048. I was content with that since he took $3650 off my car which had an original MSRP of $55,850. All in all, I think they gave me a very good deal.
  • mdiabmdiab Posts: 7
    I would consider a 36month 12,000 miles lease and then buy out at the end. That would probably be the best deal - so ignore the miles since you know you are buying out the car. The key of course would be to put money aside since the value of the car would be less than the residual, but why spend the money on the up-front lease.....
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