Audi Manufacturer Rebate Question - 2017 S3 Lease

passion4xpassion4x Member Posts: 4
edited February 2017 in Audi
Hi All,

I am working with a dealer who provided me with the following breakdown of the "due at signing" amount on a lease.

1st month payment: 586.67
Fees $ Insurance: 665.00
Up front Taxes: 43.73
Cap Reduction: 204.60

Total: 1,500 (Total Inception Fees)

Then they added $500 (Rebate as Cap Reduction) then told me that final drive off will be $2000.

I was bit confused by the fact that they are trying to pass down the cost of the rebate to me, the customer.
So I asked if this was a mistake and the response was

"All manufacturer rebates with Audi are used as cap reduction and will show in total of out of pockets."

Can someone tell me if this is true? Am I crazy in thinking that this is totally false or am I missing something? :worried:

Thanks in Advance!

J

Comments

  • kyfdxkyfdx Moderator Posts: 207,889
    passion4x said:

    Hi All,

    I am working with a dealer who provided me with the following breakdown of the "due at signing" amount on a lease.

    1st month payment: 586.67
    Fees $ Insurance: 665.00
    Up front Taxes: 43.73
    Cap Reduction: 204.60

    Total: 1,500 (Total Inception Fees)

    Then they added $500 (Rebate as Cap Reduction) then told me that final drive off will be $2000.

    I was bit confused by the fact that they are trying to pass down the cost of the rebate to me, the customer.
    So I asked if this was a mistake and the response was

    "All manufacturer rebates with Audi are used as cap reduction and will show in total of out of pockets."

    Can someone tell me if this is true? Am I crazy in thinking that this is totally false or am I missing something? :worried:

    Thanks in Advance!

    J

    Final drive-off of $2000, but only $1500 comes out of your pocket.

    It's confusing, but correct. Now, if they ask you for a check for $2000, that's another matter.

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  • passion4xpassion4x Member Posts: 4
    Thanks!. I will fight till end for my hard earned $500.
  • passion4xpassion4x Member Posts: 4
    Does anyone know what the max mark up on money factor is? Does the manufacturer decide this? If so, what is it for Audi?
  • kyfdxkyfdx Moderator Posts: 207,889
    passion4x said:

    Does anyone know what the max mark up on money factor is? Does the manufacturer decide this? If so, what is it for Audi?

    On an Audi S3?

    The base money factor is .00040 for leases up to 36 months, for top tier credit.
    That rate is set by Audi Financial
    I think the maximum markup is .00125 (total of .00165).
    Audi Financial also sets that maximum, but the markup is at the discretion of the dealer.

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  • passion4xpassion4x Member Posts: 4
    Wow. that's quiet high for max markup. I went in to the dealer hoping to get the base money factor with excellent credit, but was offered 0.00093, which basically offset the discount off the MSRP.

    How realistic is it to expect to get base MF for an S3? I've found multiple dealers with at lease 2-3 S3's and one with 8 S3 on their lot. So I don't think it is in high demand.
  • MichaellMichaell ColoradoModerator Posts: 206,313
    passion4x said:

    Wow. that's quiet high for max markup. I went in to the dealer hoping to get the base money factor with excellent credit, but was offered 0.00093, which basically offset the discount off the MSRP.

    How realistic is it to expect to get base MF for an S3? I've found multiple dealers with at lease 2-3 S3's and one with 8 S3 on their lot. So I don't think it is in high demand.

    In general, we are finding more dealers unwilling to give both the base MF and a big discount from sticker - you can have one or the other, it seems.

    That said, reach out to as many Audi dealers as you are willing to travel to; it only takes one to make a deal on your terms.

    You might also have better luck as you get closer to the end of the month.

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  • Mr_ShiftrightMr_Shiftright Sonoma, CaliforniaMember Posts: 64,482
    edited February 2017
    Not entirely sure but I think I remember that they can mark it up as much as 3% from the "buy rate" they get from their financial provider. Over the course of the lease, that is one tidy profit for the dealer, probably in your case if they did a max markup it would run $100 a month add'l profit for them.
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