2014 Audi Q5 Lease Questions

zoepup

Thanks. How about an SQ5?

zoepup

And a TDI

Michaell

@zoepup said:
Thanks. How about an SQ5?

SQ5 36mo / 15K - .00136 & 54% (premium plus; subtract 4% for prestige)

TDI 36mo / 15K - .00124 & 55% (again, subtract 4% for prestige)

phillycar1

Seeking your wise counsel: I am looking at 2014 Audi Q5 3.0 TFSI w/ MMI, Side assist, Audi Guard Protection Package, MSRP $50325. Discussed 42 mo/10k lease at negotiated purchase price of $47,305. Trading in 2007 Acura TL for approx $9,000 (subject to inspection). New to Audi. 6% PA tax, no add'l $ down. Quoted monthly payment of $500 seems high. Thanks in advance

Michaell

@phillycar1 said:
Seeking your wise counsel: I am looking at 2014 Audi Q5 3.0 TFSI w/ MMI, Side assist, Audi Guard Protection Package, MSRP $50325. Discussed 42 mo/10k lease at negotiated purchase price of $47,305. Trading in 2007 Acura TL for approx $9,000 (subject to inspection). New to Audi. 6% PA tax, no add'l $ down. Quoted monthly payment of $500 seems high. Thanks in advance

Using the MF of .00148 and residual of 50% with your numbers, I get a pre-tax payment of 634.45 - with 6% tax that goes to 672.52.

I would then assume that the $9K of trade equity is being used to reduce the cap cost. If I apply the entire amount to the cap cost, the payment drops to $431.26 after tax.

How much of the trade equity is being used to reduce the cap cost?

It's not usually a good idea to put so much down on a lease - if the vehicle is stolen or totaled, you are out that money.

phillycar1

Thanks, Michaell. I'm confused by what I have from the dealer, b/c it states a residual of .54 at $27,175, which is higher than what you used. $7698 for total initial payment, of which $2750 comes out of the trade-in value and $4950 allocated as refundable security deposit. Remainder of trade in value in check to me.

Michaell

@phillycar1 said:
Thanks, Michaell. I'm confused by what I have from the dealer, b/c it states a residual of .54 at $27,175, which is higher than what you used. $7698 for total initial payment, of which $2750 comes out of the trade-in value and $4950 allocated as refundable security deposit. Remainder of trade in value in check to me.

The residual cannot be changed - are you sure this is an Audi Financial Services lease?

The refundable security deposit is a good idea - you'll reduce the MF (and payment) and you'll get the money back at the end of the lease.

phillycar1

Thanks again, Michaell. My sheet from Audi dealer shows 42 mo term, but .54 for residual. It doesn't display 10k miles, but that is what we discussed. I note at the bottom in fine print the sheet states "VW Credit Inc.," so I guess it's not Audi Financial Services (which I would have presumed it to be if you hadn't raised it).

Michaell

@phillycar1 said:
Thanks again, Michaell. My sheet from Audi dealer shows 42 mo term, but .54 for residual. It doesn't display 10k miles, but that is what we discussed. I note at the bottom in fine print the sheet states "VW Credit Inc.," so I guess it's not Audi Financial Services (which I would have presumed it to be if you hadn't raised it).

The 'standard' residual value for the Q5 3.0T Premium Plus for 36 months is 54%. However, this is for 15K miles - add 3% for 10K miles per year.

VW Credit and Audi FS may be one and the same.

dan412

What is the residual/MF for a Premium trim 36months/10k lease? Thanks

kyfdx

@dan412 said:
What is the residual/MF for a Premium trim 36months/10k lease? Thanks

2.0T? .00126 MF and 56% for either Premium or Premium Plus.

dan412

Thanks

ankurg

Hi - does Audi take MSD (Monthly security deposits) to reduce the Money Factor? if yes, how much is the reduction per MSD? Please advice
Ankur

Michaell

@ankurg said:
Hi - does Audi take MSD (Monthly security deposits) to reduce the Money Factor? if yes, how much is the reduction per MSD? Please advice
Ankur

Audi allows up to 9 MSD, each of which reduce the MF by .00005

phillycar1

Michaell - Have clarified that I had an erroneous input from dealer sheet. Can you please provide current MF on a 3.0 premium plus with MMI, 42 mos/12K

Michaell

@phillycar1 said:
Michaell - Have clarified that I had an erroneous input from dealer sheet. Can you please provide current MF on a 3.0 premium plus with MMI, 42 mos/12K

.00148 and 52%

genie1900

Can you help with MF and residual for Q5 Premium Plus (12k mies/36 mo)? If Audicare is purchased up front, how does that change the residual?

Michaell

@genie1900 said:
Can you help with MF and residual for Q5 Premium Plus (12k mies/36 mo)? If Audicare is purchased up front, how does that change the residual?

2.0T - .00126 MF and 55%

3.0T - .00128 MF and 56%

AudiCare adds 1% to the residual.

marcames11

Could I have the money factor and residual value for: SQ5 prestige, 36month/12k miles AND 42month/12k miles?

Michaell

@marcames11 said:
Could I have the money factor and residual value for: SQ5 prestige, 36month/12k miles AND 42month/12k miles?

36/12 - .00136 & 52%

42/12 - .00156 & 48%

marcames11

Should I expect those exact numbers from any dealer? Or do dealers pad those terms on occasion?

Michaell

@marcames11 said:
Should I expect those exact numbers from any dealer? Or do dealers pad those terms on occasion?

The residual value is fixed by Audi Financial .. the MF, on the other hand, can and often are marked up by the dealer for extra profit.

kbess

Could I please have the current MF and residuals for a Q5 prem plus 36mo, 12k per year?

Thanks!

Michaell

@kbess said:
Could I please have the current MF and residuals for a Q5 prem plus 36mo, 12k per year?

Thanks!

2.0T - .00126 and 55%

3.0T - .00128 and 56%

bernard2o6

Hi folks,

Here's a quote I received on a 2014 SQ5 Prestige with a $64,265 sticker. In addition to the Prestige package, it also has the Nappa Leather option. They proved a 42 month @ 12k miles/year

• $1365 discount of MSRP
• MF of .00181 (this is what they called out as an estimate before running my credit, but I currently have a FICO score of 770), so hopefully they'll come down slightly after officially running the report?
• Residual at 48%
• base payment: 969.54
• total payment with tax: 1064.55
• purchase option: 30847.20
• MSRP: 64,265.00
• Disposition Fee: 350.00
• Excess mileage charge: $0.25/mile
• Amount Due at Signing: $1,064.55
• • 1,064.55 for 1st month payment
• • 500.00 fees & insurance

How's this looking? Any areas to focus on to sweeten the deal?

Thank you!

kyfdx

@bernard2o6 said:
Hi folks,

Here's a quote I received on a 2014 SQ5 Prestige with a $64,265 sticker. In addition to the Prestige package, it also has the Nappa Leather option. They proved a 42 month @ 12k miles/year

• $1365 discount of MSRP
• MF of .00181 (this is what they called out as an estimate before running my credit, but I currently have a FICO score of 770), so hopefully they'll come down slightly after officially running the report?
• Residual at 48%
• base payment: 969.54
• total payment with tax: 1064.55
• purchase option: 30847.20
• MSRP: 64,265.00
• Disposition Fee: 350.00
• Excess mileage charge: $0.25/mile
• Amount Due at Signing: $1,064.55
• • 1,064.55 for 1st month payment
• • 500.00 fees & insurance

How's this looking? Any areas to focus on to sweeten the deal?

Thank you!

I don't know what the market is for the SQ5, but a 2% discount from MSRP is pretty puny.. So, I'd start with a lower selling price (6% off?). The base MF is .00156, so a little savings available there. You can add AudiCare, and that will raise your residual by 1%. That will raise the payment a little, but it will be cheaper than paying for scheduled maintenance out of your pocket.

The MSD program would save money in the long run, but it's a big upfront amount, at that monthly payment level.. Also, if you can live with the Premium Plus model, the residuals are 4% higher, which would save $70-$80/mo.

bernard2o6

@ kyfdx@Edmunds - Thank you for the feedback! The sales gentleman was pretty candid about the discounts on the Q5 being much greater than the SQ5, but I'll definitely come back with a little more on the MSRP. I'll also bring up the MF expectations once they officially run my credit, since I think my scores have probably improved since my last FICO update. I'm still on the fence about AudiCare since I'll likely trade up mid-lease if there's any equity anyway or see what the SQ5 redesign brings in 2015.

We're pretty set on the Prestige model since there aren't any Premium Plus models that have the options I'd like to have - at least not in the immediate area nor what's on the way to the local dealers.

Again, thanks so much for chiming in and I appreciate what you do for consumers!

pcullen1

null
Bernard2o6 - If you can hold off 3 months you can order your 15 now. Pricing not out for another few weeks but the order guide is up on the audiworld forums. No redisign this year but a few package changes which make some things available on premium plus which weren't previously.

jtlau1

Hi everybody,

I just picked up my 2014 Q5 Premium Plus 2.0 a few days ago for my wife that I leased through Military AutoSource. It has the following options: Monsoon Grey, Sport Interior Pkg, Rear Side Airbags, Side Assist, Guard Protection Kit, and MMI. I thought I was getting a deal for 36/12 with the following:

• MSRP $48,270
• "Privileged Military Discount" $4,641
• Final Price $43,629
• Residual at 55%
• MF .00251
• Down payment $1500 (I opted to have sales taxes (California - San Diego County) rolled into monthly payments.
• Other fees (i.e. acquisition, etc.) $1045
• Monthly payment including tax is $686.91

Total due at "signing" was the $1500 + first month's payment.

Additionally, I know this belongs in another thread, but I am awaiting the delivery of my S5 Premium Plus MT with the following options: Black Optic Pkg, Nappa Leather, Estoril Blue, B&O Sound, and MMI. It is also 36/12.

• MSRP $60,915
• "Privileged Military Discount" $5,413.5
• Final Price $55,501.5
• Residual at 55%
• MF .00195 (initially quoted at .00237 but lowered after I asked considering I'm leasing 2!)
• Down payment $1500 (as above with the Q5)
• Monthly payment including tax $832.98

Total due at "signing" again was the $1500 + first month's payment.

I have 14 days from the pickup of the Q5 (Apr 23) to get a better MF/RV quote which they "guarantee" to beat. I haven't picked up the S5 yet, so I have time for now. Will I be able to find a better deal with MF/RV/etc? I applied jointly with my wife and our credit is >750. This is my first time leasing a vehicle, let alone two. I suppose I should have done more research, but hindsight is 20/20. Here's to doing this all while in Afghanistan. =\ I appreciate any thoughts any feedback that may help me save some money.

Michaell

@jtlau1 said:
Hi everybody,

I just picked up my 2014 Q5 Premium Plus 2.0 a few days ago for my wife that I leased through Military AutoSource. It has the following options: Monsoon Grey, Sport Interior Pkg, Rear Side Airbags, Side Assist, Guard Protection Kit, and MMI. I thought I was getting a deal for 36/12 with the following:

• MSRP $48,270
• "Privileged Military Discount" $4,641
• Final Price $43,629
• Residual at 55%
• MF .00251
• Down payment $1500 (I opted to have sales taxes (California - San Diego County) rolled into monthly payments.
• Other fees (i.e. acquisition, etc.) $1045
• Monthly payment including tax is $686.91

Total due at "signing" was the $1500 + first month's payment.

Additionally, I know this belongs in another thread, but I am awaiting the delivery of my S5 Premium Plus MT with the following options: Black Optic Pkg, Nappa Leather, Estoril Blue, B&O Sound, and MMI. It is also 36/12.

• MSRP $60,915
• "Privileged Military Discount" $5,413.5
• Final Price $55,501.5
• Residual at 55%
• MF .00195 (initially quoted at .00237 but lowered after I asked considering I'm leasing 2!)
• Down payment $1500 (as above with the Q5)
• Monthly payment including tax $832.98

Total due at "signing" again was the $1500 + first month's payment.

I have 14 days from the pickup of the Q5 (Apr 23) to get a better MF/RV quote which they "guarantee" to beat. I haven't picked up the S5 yet, so I have time for now. Will I be able to find a better deal with MF/RV/etc? I applied jointly with my wife and our credit is >750. This is my first time leasing a vehicle, let alone two. I suppose I should have done more research, but hindsight is 20/20. Here's to doing this all while in Afghanistan. =\ I appreciate any thoughts any feedback that may help me save some money.

First, thank you for your service.

When I run the numbers you've provided for the Q5 lease, I get a pre-tax payment of $650.60 for 36 months. However, the base MF from Audi FS for the Q5 2.0T premium plus is .00126, so it looks like that is being marked up. The residual of 55% matches what I'm showing. You should be able to save some money by asking the dealer about that.

For the S5, I calculate a pre-tax payment of $784.62 for a 36/12 lease. Again, the residual of 55% matches, but the base MF is .00112.

Can you confirm that you are tier 1 credit? That's the only other reason - other that pure greed - that the MF would be higher than base.

jtlau1

Thank you for the reply!

I do indeed have Tier 1 credit. With these numbers that you're providing me, how can I use this to help me negotiate? Where are these numbers originating from? Presumably when I go to a dealership, I will basically need to negotiate a final price with them and then figure out the MF/RV? How would I use the information to help me out when negotiating with dealers?

I am finding out if Military AutoSource will match only the final negotiated price or if they will match a MF/RV that is provided. I find it hard to imagine that a dealership would match upwards of 9% discount from MSRP for two vehicles, but I defer to more experienced individuals to tell me otherwise.

I concur with your assessment that it may be purely greed that the MF is so much higher than the base...

Michaell

@jtlau1 said:
Thank you for the reply!

I do indeed have Tier 1 credit. With these numbers that you're providing me, how can I use this to help me negotiate? Where are these numbers originating from? Presumably when I go to a dealership, I will basically need to negotiate a final price with them and then figure out the MF/RV? How would I use the information to help me out when negotiating with dealers?

I am finding out if Military AutoSource will match only the final negotiated price or if they will match a MF/RV that is provided. I find it hard to imagine that a dealership would match upwards of 9% discount from MSRP for two vehicles, but I defer to more experienced individuals to tell me otherwise.

I concur with your assessment that it may be purely greed that the MF is so much higher than the base...

I didn't calculate the discounts from MSRP, but if they are around 9%, don't think you'll be able to do any better on your own. I qualify for a supplie discount through my employer and that's only 6% off MSRP.

Our numbers are from Audi and aren't available to the general public. They are meant to be used as assistance to ensure you are getting the best deal possible - no marked up MF's, for example.

In your case, the selling price is about as good as it's gonna get, so the only thing you can negotiate is the MF. The residual is fixed by the finance company.

Given the discount, I'm not surprised that the dealer is marking up the MF to make up some of the lost profit.

kshay

Does anyone have recent lease terms for 2.0 Q5 premium plus package, sports interior, mmi nav? Looking for Price, Money Factor, Residual for a 10k, 36 mo lease. Thanks much.

kshay

Sorry, but could I also get MF and residual for 12k 36 mo lease as well for above features. Thanks again.

kshay

On a related note, can you explain how putting down a refundable deposit will lower the payment? Does it lower the MF? What is the optimal amount to put down? Thanks!

kshay

Final question (for now ) - Is the destination charge for a Q5 $895? Is there any room to negotiate that down/away? Thanks.

Michaell

@kshay said:
Does anyone have recent lease terms for 2.0 Q5 premium plus package, sports interior, mmi nav? Looking for Price, Money Factor, Residual for a 10k, 36 mo lease. Thanks much.

.00126 MF and 55% residual.

Sorry, but could I also get MF and residual for 12k 36 mo lease as well for above features. Thanks again.

Add 1% to the residual for 12K.

On a related note, can you explain how putting down a refundable deposit will lower the payment? Does it lower the MF? What is the optimal amount to put down? Thanks!

Audi does allow multiple security deposits to be made to lower the money factor. The security deposit is the monthly payment rounded up to the next $25. Each security deposit lowers the MF by .00005, and a maximum of nine MSD's can be used.

Final question (for now ) - Is the destination charge for a Q5 $895? Is there any room to negotiate that down/away? Thanks.

Destination charge is set by the factory. You are welcome to try to negotiate a selling price to counteract that fee.

kshay

Thanks very much. Did you mean subtract 1% for 12k?

Michaell

@kshay said:
Thanks very much. Did you mean subtract 1% for 12k?

No, the residual % is higher if you plan to drive fewer miles during the lease term.

kshay

right, so based on your answers above these are the MF and residual, correct?

10k - .00126 and 55%
12k - .00126 and 54%

Michaell

@kshay said:
right, so based on your answers above these are the MF and residual, correct?

10k - .00126 and 55%
12k - .00126 and 54%

Correct.

kshay

A dealer in Los Angeles just quoted Residual 56% MF.00126 for 10k. Can you double check the terms you see? Any chance they should be: 10k 56%, 12k 55%? I just want to make sure I've got the facts before proceeding with him. Thanks

Michaell

@kshay said:
A dealer in Los Angeles just quoted Residual 56% MF.00126 for 10k. Can you double check the terms you see? Any chance they should be: 10k 56%, 12k 55%? I just want to make sure I've got the facts before proceeding with him. Thanks

Those are correct .. the 15K residual for 36 months is 53% - add 3% for 10K and you get 56%.

MF of .00126 is spot on as well.

kshay

great, thanks.

kshay

What are the MF and residual for 2.0 Q5 48 month lease 10k, 12k and 15k? Thanks.

Michaell

@kshay said:
What are the MF and residual for 2.0 Q5 48 month lease 10k, 12k and 15k? Thanks.

Base MF increases to .00146 and residual (15K) drops to 46%. Again, add 2% for 12K and 3% for 10K miles per year.

jtlau1

@Michaell@Edmunds said:

That's what I figured. It seems like it'll be too late to do anything about the Q5, since I've signed and submitted and have received it already. Hopefully I can get a better MF for the S5. Military AutoSource is now starting to give me the run around claiming that it's Audi setting the MF that has been given to me and not their finance department.

Since the base MFs that you're providing are generally not released to the public, what grounds do you think I have to negotiate with them for a better MF? Any pointers/advice?

At the end of the day, it seems like this is just another one of life's great lessons. And a somewhat pricey one, at that.

And I sincerely thank you for your time and comments, it's been very helpful!

Michaell

@jtlau1 said:
And I sincerely thank you for your time and comments, it's been very helpful!

Just ask the dealer if they are marking up the base money factor, or if they are using a different finance company.

jtlau1

@Michaell@Edmunds said:

So I talked to them and they gave me the base rate of .00112 for the S5. However, they said that for the Q5, since I already signed the paperwork and accepted delivery of the vehicle, that there was nothing to be done? I'm guessing I should just be happy that I was able to get the lower rate for the more expensive vehicle.

kshay

A dealer just told me Audi does not offer multiple security deposits that reduce the money factor. Is that correct? I thought I read in multiple places that they offer up to 9 MSDs, each of which reduces MF by .00005. Can you confirm either way? Thanks.