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2MSRP: $57560

Negotiated price: $55560

Residual: 51%

Rate: 2.5%

36 Month/12K Mile per year

$0 Down

$951.66 monthly

The salesman said the S-line has a worse residual than the non-Slines.

Here's a pic for your troubles

139Yes - the 2008s will probably cost more in MSRP - as I believe the prices are going up. Also, the potential discounts with the new model year will be reduced as well in the beginning. Dealers are incentivized to get the 2007s off their lot right now.

On the flip side, you probably can expect a higher residual value in September on the 2008 year model whcih could also be offset by an increase in the money factor. Audi has been offering 1% area money factors for a number of months now.

1821184I live in South Florida and after waiting for 3 months, I will finally pick up my 3.6 Premium S-line this weekend. MSRP is $57005 and selling price is $52990 plus dealer fee. Dealer is telling me that 36/15 MF "Buy" and "Sell" rates are different. Shall I insist on a "Buy" rate or give in? What is the current rate to go by?

Dealer is also saying that S-line has 50% RV based on 36/15 that can be bumped to 51% with Audi Care? How much is Audi Care and should I get it?

They mentioned that if I put $3100 towards security deposits (I guess 4 x $775) the MF will go further down but I don't know for how much.

You have helped many and we all respect you for that immensely. Thanks a million in advance. Z-man

132007 Audi Q7 3.6 Premium:

36 Month, 15k – Residual 51% of MSRP – 0.00038 Base ("Buy") Rate

Residual is +1% with Audi Care, -2% with S-line, so *with* Audi Care it should actually be 51 - 2 + 1 = 50%. Your dealer is giving you 1% extra somehow. Strange.

Audi Care is around $570 and hence pays for itself (1% of MRSP = $570). So do it!

Even with such a low monthly payment, DO NOT do ANY more than 1 security deposit; after the first one (if you don't put it down, your MF increases by 0.00015, which will cost you $450 in interest over the life of the lease, but multiple SDs will decrease the MF by much less), at these extremely low Money Factors, the opportunity cost is far greater than the reduction in interest. Generally, you should minimize the drive-off as much as you can.

(actually, for people who have a monthly payment above the $1k mark, you shouldn't even put down the 1 security deposit, since the opportunity cost will be greater than even the $450).

Yes, "Buy" and "Sell" rates can be different; your dealer is giving you a price pretty close to invoice so he's trying to make money on the lease. That's normal -- but be careful on how much he charges up. Ask for the total interest. By each 0.00035 he marks up the MF, he's pocketing around $1,000 extra from you. So be careful!

4618$2000 under invoice

Sec deposit and 1st month

Acquision fee $575

Title fee $23

MF .0007

Residual after Audi care 49% boooo

License fee $216

Sale Tax 5.2% for Maryland where I live $2867

Documentation fee $345

Audi care $590

Wonderful car..probaly more car than I need (I wanted a loaded 3.6L) but this was about $3k more so why not….

I believe at this point anyone can get invoice for any 2007 Q7 in any dealers stock.

Now I have to figure out how to pay for the $90 tanks of gas?

5Thanks...

13Yes, it's a lot of assumptions, but you are not giving us much information...

MF: 0.00038

Residual: 52%

Cap Cost $53,861.80

Residual Value $27,092.00

Depreciation $743.61

Interest $30.76

Sales Tax $46.46

Total Monthly Payment: $820.83

6646The MSRP of my car was $55,670. I am leasing for 36 months, 15,000 miles per year. I gave Audi a $3,000 refundable security deposit to lower my Money factor to 0.00006 (0.14%) Doing this saved $30/month in payment. I also have Audi Care. All scheduled maintenance is covered. Since they add 1% to the residual value, the payments didn't change at all. I paid $1785 at lease signing (first month payment, acquisition fee, registration, etc) plus $3000 security deposit. My payments, including NJ taxes, are $732.

3138(2) A few months ago, at one So Calif dealer, there was an Audi promotion to pay the first month? At that time, it was invoice+$1000 -first month ($800) -- which meant net cost of invoice+$200. Is there any current promotion?

(3) Can you get closer to invoice and still get the good MF?

(4) What will purchase of AudiCare due to transaction?

(5) How do deposits work?

3Could you confirm the may lease rates (residual % and money factor) for the Q7? 3.6 premium? 10,000 miles per year?

thank you very much

647I'm generally a fan of leasing, but the numbers have to work out and your's don't with that down payment.

13You're much better off doing a 15k/yr lease with AFS (low MF) and then at the end of the 3 yrs, trade in or sell to CarMax or something. Even if you're slightly upside down, at least you weren't paying interest you didn't need to.

Even if you do a 20k/yr lease, DO NOT, EVER, put that much money down. If you total the car, or something else happens, you're hosed. Remember: the car IS NOT YOURS in a lease; there's absolutely no reason you should put ANY money down!

613If you don't believe me, do this: get quotes from the dealer for 20k/mi year and 10k/mi year leases (make sure you ask for AFS at least on the latter).

Then take the difference in monthly payment, and calculate how much money you would have after 36 months by investing that difference every month -- let's be conservative and assume 7% interest after tax.

Then look at the difference in residuals at the end of the lease, and compare that difference with how much money you will have in the investment...

You'll get it.

613AFS = Audi Financial Serivces

You will only pay overage fees if you turn in the car. If you trade it in, you pay no mileage fees. Your trade in may be lower than the payoff on the lease, but what I explained above is that with the low Money Factors AFS has on the Q7, even if you need to compensate for the difference (you're "upside down"), it will be lower than what your cost of opportunity on the difference between payments (depreciation).

This is the best I can do to explain it. If in doubt, run the numbers as I said before.

413The below is for 15K miles/year. Add 2% to Residual for 12k mi/yr and 3% for 10k mi/yr on all terms

Add 1% residual if you get AudiCare (which adds $590 to the cap cost).

2007 Audi Q7 3.6 Premium

24 Month – Residual 60% of MSRP – .00038 Base Rate

36 Month – Residual 51% of MSRP – .00038 Base Rate

6'07 Q7 4.2 Premium

MSRP 62260

Selling price 59900

15k mls/yr + 5k in $.15 prepaid miles for a total of 20k miles (Yes, I do need all 20k/yr)

Residual % .45

Residual amount 28017

mileage adjustment 2250

adjusted residual 25767

rate 1.5

zero down

base monthly 1076 + tax

13Even discounting that, your monthly payment is EXTREMELY high.

First you're being robbed on the price. $2,360 under MSRP is highway robbery for a 2007 4.2 Premium at this point in the year. You should be getting pretty close to invoice, or even below it. They want to get rid of the car. I wouldn't offer a cent over $58k -- probably less.

Your residual also looks like at least they didn't add AudiCare -- ask them for it!

Your cap cost also looks strange (doing a reverse calculation) -- I'm assuming that you're on a very low drive-off (i.e., everything and their mother is being added to the cap cost).

6Nevertheless, I will definitely work on the selling price to get at or below invoice. They did forget to put the Audi care into these numbers and I will be doing that. These are the drive off #'s right now. Which of them can/should I try to get them to scratch.

1 month's payment = 1165.46

doc fee = 45

acquisition fee = 575

upfront fees = 441

upfront taxes = 51.15

total initial payment = 2277

thanks again,

13If that's your total initial payment, the cap cost should be the price. However, if you run the numbers, they don't add up. Check yourself:

Use the following formula to calculate a lease payment (assuming you're paying all the fees upfront like you say above):

(Price – Residual Value) / Term = Depreciation

(Price + Residual Value) X Money Factor = Interest

Depreciation + Interest = Base Monthly Payment

Using the above, with the numbers you gave, the base monthly payment (i.e., before tax) is about $40 below the one you got quoted. Something doesn't add up.