Edmunds dealer partner, Bayway Leasing, is now offering transparent lease deals via these forums. Click here to see the latest vehicles!

Audi Q7 Lease Questions

12357…21

Comments

  • mikeoc1mikeoc1 Member Posts: 46
    mdiab,

    I am with you on this one. I would love for someone to explain to me if I'm wrong. Ideally, in a lease, a high residual and a low money factor will provide the lowest monthly payments. If I had a choice, however, I would prefer a lower residual and a low interest rate. What does paying interest get you?

    My money factor, after 4 Multiple Security Deposits, is 0.00006. This is 0.14%. In my case, how is leasing that much different than buying? My residual value after 45,000 miles will be 53% or $29500. I am paying almost no interest to Audi Financial Services for the next three years. If the residuals are artifically low, maybe I can buy out the car and sell it for a few thousand more than I can buy it for.

    I am about to come off a 2004 Mercedes CLK 320 lease. The residuals were very high (63% I believe) at the time I leased it. There's no way that it's worth its buyout.

    Please, someone, if I'm missing something tell me!!
  • jim5penjim5pen Member Posts: 31
    I reclined the second row seats and seemed to be able to get our two Britex car seats to fit under the head rest. In the full upright position I could not get them to fit either.
  • anderlechtanderlecht Member Posts: 3
    hey guys,

    I'm interested in leasing a Q7 V6 Premium with 2nd Row RR Side Air Bag SRS, 20" wheels, tech package and the infotainment package. Total MSRP is $53,770 with $720 destination charge. I got the total price down to $51,658.81. For the 36Mo. 15K miles with Audi Care, I got $634.99 per/mo with 53% residual. That is after a $5793.11 down payment. MF is 0.00043

    However, the second option was 36Mo. 12K miles with Audi Care, I got $605.53 per/mo with 55% residual. That is after a $5689.59 down payment. MF is 0.00043 as well.

    This is my first time leasing and I wanted to know whether I am getting a good deal or not. I am trying to take delivery by Tuesday. Please let me know ASAP!
  • hoosbesthoosbest Member Posts: 39
    The deal seems OK. If the dealer has the car sitting on the lot, there seems to be possibly some more negotiation room. Many folks are getting the Q7 for $500 over invoice.

    As for your lease, the rule of thumb is to never put money down. Your amount is way to high. Given Audi is giving you a sub 1% money factor, it makes no sense to tie up that kind of money in the car lease. Save the $5700 and earn 5% in a money market given the "free" financing. We just spent a similar amout on a Q7 3.6 premium with no money down and are at $695 per month. For $5700 you can save, the exta $90 difference is more than offset in your savings of the down payment. And if you ever decide to break the lease, you haven't lost that down payment.
  • kris17kris17 Member Posts: 18
    Can someone please explain these "multiple security deposits" and how they work? Is there a limit on how many you can post? How and why do they reduce your monthly payments? Do you get all of these deposits back at the end? Thanks
  • hoosbesthoosbest Member Posts: 39
    They basically allow you to reduce the money factor. I would assume you would get those back - however, it is a money losing factor on the current 3.6 lease. The current lease is something like 0.9% financing. So you would tie up money to lower the money factor less than one half of one percent. To me, save the money on the security deposit and invest it to earn 4-5%.
  • cwa318cwa318 Member Posts: 79
    I am interested in leasing a Q7. What kinds of fees are dealers putting on buyers. I have seen a host of fees on various sitesand just trying to get some clarity.

    Thanks
  • hoosbesthoosbest Member Posts: 39
    Depending on where you live - you may get hit with and advertising fee. My dealer also stuck a doc/processing fee of about $499 on it. (wasn't pleased) You will have to pay the acquisition fee on the lease.
  • anderlechtanderlecht Member Posts: 3
    I have a 2000 Maxima that I am trading in. They are quoting about $4K for the trade in. I'm going to try to bring the final price down to like $51K and make the trade-in the down payment. Let me know if I'm doing something wrong or if I can do better. Thanks in advance.
  • mikeoc1mikeoc1 Member Posts: 46
    Hoosbest,

    Bad advice, man. The details of my lease are a few posts above. I am making 4 Security Deposits ($3000) which lowers the money factor from 0.00038 to 0.00006. The result is that I am saving $30/month. $360 tax free earnings on a $3000 investment is 12% tax free. Find me something better and I will take you up on it.

    Don't just blindly do MSDs. Find out the monthly payment without MSDs and compare them to the payment with MSDs. If it makes sense, do it.
  • mikeoc1mikeoc1 Member Posts: 46
    First of all, the dealer is adding profit for themselves with that Money Factor. The current 36 month/15k miles money factor is 0.00038.

    Secondly, don't put any cap cost reduction on the lease. Yes, you're payment is lower, but you're just essentially prepaying lease payments. Given the relatively low interest rate, you're not really saving anything. Also, God forbid you total the car, you will not likely see any of that money back.

    Good job doing the Audi Care, it doesn't change the payment and now you get scheduled maintenace. Good luck!
  • mikeoc1mikeoc1 Member Posts: 46
    Kris17

    Audi allows you to make up to 9 security deposits. They are fully refundable at the end of the lease. Each security deposit (monthly lease payment rounded up to the nearest $50, I believe) lowers the money factor by 0.00008.

    In my case, I was only allowed to make 4 deposits because the initial MF was 0.00038. So take away 0.00032 from 0.00038 and you get my MF of 0.00006.

    When you negotiate the lease, get the payment without MSDs. Then tell them that you want to make as many MSDs as you are allowed and you can afford. See the difference in payment relative to the amount you are giving them. In my case I am giving them $3000 for 3 years. I am saving $30/month in payment. That's a 12% tax free guaranteed return on my money. I get the $3000 back at the end of the lease.

    THe reality is that most people don't do this because most people in America don't have more than a couple of bucks in the bank and can't part with the money for the 3 years. But if you can, do it. It usually makes a lot of sense to do.
  • mikeoc1mikeoc1 Member Posts: 46
    Have them cut you a check for the trade in. Don't put a cap cost reduction on the lease. Not worth doing.
  • hoosbesthoosbest Member Posts: 39
    Mikeoc1 - I still don't agree with your approach. While it is not wrong, here is my rationale.

    I am not a fan of tying up money. So you are telling me you want to tie up $3000 to save less than 0.7% in interest cost in your lease rate? From my quick math - the difference is negligible - less than $500 difference than putting the money in a bank CD earning 5% or a wash when looking at the long-term market equity returns of 8%. Having the liquidity and flexibility of the $3000 in my bank account over the three years of the lease is better in my book than tying it up with Audi in a security deposit given the current .00036 money factor regardless of one's bank account size. Additionally, Audi could always try to keep that money if you want to break the lease. You can't price the option value of the liquidity.
  • mikeoc1mikeoc1 Member Posts: 46
    Hoosbest,

    If I didn't give Audi the $3000, my payment would be $30/month higher. I would have to pay an additional $360/year each year for 3 years. The $3000 that I am keeping in my account would have to earn 12% tax free to compensate for the additional $360/year.

    It doesn't matter that the money factor is already low. The original lease price is based on that. I am making it even lower.

    I don't need all of my money now. If I did, I'd be broke. I can take $3000, give up use of it for 36 months, and in return save $30/month on my lease payment.

    I would do that 100 times out of 100 and, in my opinion, it would be financially irresponsible not to.
  • japhalejaphale Member Posts: 15
    Hi Mikeoc1:

    I've been following your posts with interest as I am getting ready to lease a Q7 (15K/36mths). Could you share your monthly payment, MSRP & selling price & your dealer? I'll likely go for the MSD's also.

    Thanks in advance.

    J
  • hoosbesthoosbest Member Posts: 39
    No argument for me. Just that the dollar difference savings to me is not great enough to tie up $3000 over 3 years to save $1000 (absent time value of money). I would prefer to keep the $3000 liquid.

    In my lease - the savings would have been only about $900 over three years. I prefer to invest the difference and keep the money liquid. At an 8% return (which equals the long term S&P average), the amounts are a wash.
  • rocco50rocco50 Member Posts: 21
    Is the low MF deal applicable to the base model too, or just the premium?
  • mikeoc1mikeoc1 Member Posts: 46
    Japhale,

    I'd be happy to share my deal. After reading everything I've read, I feel it's a decent one.

    I have ordered a Bright Silver, Black interior, 3.6 Premium, Infotainment, Convenience, Technology, Moonroof, 19" wheels. I thought about the cricket leather, but didn't see that big of a difference. I thought about the Quartz Gray color ($750 option) but my wife liked the bright silver a lot better. I thought about the 20s, but the car is coming at the same time that our first child, so went for a slightly smoother ride.

    MSRP is 55670. Selling price is 53731 (you could probably do a litte better). Residual was 52%, but increased to 53% with AudiCare. AudiCare doesn't change the payment, make sure you include it. Money factor was 0.00038 (Lowered to 0.00006 with 4 MSDs) 36 months/15,000 miles. Monthly payment of $733 taxes included (NJ). Payment would have been about $763 without the MSDs. I bought from Jack Daniels Audi in Fair Lawn, NJ.

    $4770 due at lease signing (includes first month, the usual fees and a $3000 fully refundable security deposit)

    I ordered because I need the car in May. I can't wait!!

    Please ask if you have any other questions. Lots of luck!
  • mikeoc1mikeoc1 Member Posts: 46
    Hoosbest,

    I took a look at the numbers and wanted to share. Once again, you have to look at the individual deal with and without MSDs to see if it's worth it. The more expensive the car, the more it's worth it, typically.

    1 choice would be to keep the $3000 in the bank. If it earned 5% (forgetting taxes for the moment) you would have $3484 at the end of 3 years.

    If you took the $3000 and gave it to Audi, in my case you'd save $30/month in lease payment. If you diligently took the $30 and put it in the bank every month for 36 months, at the end you would have $1,162. Then you'd get the $3,000 back from Audi so you'd have $4162. Giving up the use of $3000 for 36 months gives you $678 of added wealth.

    You shouldn't keep all of your money liquid. Significant opportunity cost to do so. If you have your 3-6 months of living expenses already in savings, taking $3000 out of your investment portfolio to do this makes financial sense. If all you have is $3000, don't do the MSDs, and don't buy a $55,000 car!!

    Have a great day!
  • rocco50rocco50 Member Posts: 21
    Mike,

    If I gave them my A6 for the trade-in, doesn't it mean that I pay less sales tax on the Q7 lease? So if I get 7,000 off the price of the Q7, I am now saving on the tax.

    Here are the numbers I ran through LeaseGuide.com, without and with the trade-in. This is for a base Q7 with a NJ sales tax. Please tell me if this is realistic!

    According to LeaseGuide.com w/o trade-in
    ----------------------------------------------
    MSRP: 39900
    Base Cap Cost: 38000
    Costs Added: 575 (aquisition fee)
    Cap Cost Reductions: 0
    Adjusted Cap Cost: 38575
    Residual Value: 23940 (60% - 10k/yr)
    Money Factor: 0.0004
    Term: 36
    Sales Tax: 7%

    Depreciation: 14635
    Finance (Rent) Charge: 900
    Total Sales Tax: 1087

    Total of All Pmts: 16622
    Total Lease Cost: 16622

    Monthly Pmt: 431
    Tax: 30
    Total Monthly Pmt: 461

    According to LeaseGuide.com w/ trade-in of $7,000
    -----------------------------------------------
    MSRP: 39900
    Base Cap Cost: 38000
    Costs Added: 575 (aquisition fee)
    Cap Cost Reductions: 7000
    Adjusted Cap Cost: 31575
    Residual Value: 23940 (60% - 10k/yr)
    Money Factor: 0.0004
    Term: 36
    Sales Tax: 7%

    Depreciation: 7635
    Finance (Rent) Charge: 799
    Total Sales Tax: 100

    Total of All Pmts: 9024
    Total Lease Cost: 15534

    Monthly Pmt: 234
    Tax: 16
    Total Monthly Pmt: 250
  • mikeoc1mikeoc1 Member Posts: 46
    I frankly am not 100% sure, although logic would say that you are correct. I do have two observations.

    In the 2nd example, you say total sales tax is $100. Then you say that of the 250 monthly payment, 16 of it is tax. After 36 months, that's $576 of tax. This represents a $504 tax savings along with a $100 interest savings.

    Second, you have the total lease cost in the 2nd example as being $15534. $250*36 = 9000 + 7000 down payment = 16000. This compares to the 16,662 cost of the lease in example 1. This more accurately reflects the tax and interest savings.

    While saving $600 is nice, the downside of doing this is if the car is totaled or stolen and not recovered, you lose the $7000 trade in. A cap cost reduction does indeed save some interest and I do believe a trade in would save the tax on a lease.

    I do belive, though, that the general consensus would be to avoid any cap cost reduction on a lease, tax savings or not.
  • rocco50rocco50 Member Posts: 21
    You're right, now that I think about it. I'd be better off investing the $7,000 in an ING savings account, where I would earn $350 annually, $1050 over 36 months not counting interest on interest, $400 more than what I would get from the tax savings. If I receive a check from them for my car instead, does this mean I now have to pay tax on this sale? Or is it still considered a trade-in?

    The big question for me on the Q7 remains - is the money factor is also .00038 for the base model just like it is for the premium? I called Audi Fin Svs but of course they didn't tell me this information... Anybody know? Carman?

    Before I even started to discuss numbers, the salesperson telling me that the lease deal on the Premium is better. Are they getting some incentive from the manufacturer on the premium models?
  • mikeoc1mikeoc1 Member Posts: 46
    You aren't paying tax on the sale of the car, you're paying tax on the purchase of the car. So if you receive a check, you do not have to pay taxes on the sale.
  • rocco50rocco50 Member Posts: 21
    Thanks, I am new to this.

    Are there any reasons not to get a 39 month lease instead of 36 months? The warranty still covers it.
  • hoosbesthoosbest Member Posts: 39
    Mike - No disagreement with your argument. I opted not to tie up the money with Audi for the marginal benefit - which I calculated around $300 for three years versus the ability to invest it somewhere else (i.e int'l ETF fund) and have the ability to get that money if needed (which I won't). While I could have easily put down the 4 MSDs (ironically it was never offered to me), just a personal decision. Some of the int'l ETFs have been earning well in excess of 10%.
  • mikeoc1mikeoc1 Member Posts: 46
    If you are paying the same depreciation over 39 months vs 36 months, and the interest rate is low, I see no reason why it would be a bad thing. Chances are the payment will be lower as well. The key is the difference in residual value and the Money factor.
  • CarMan@EdmundsCarMan@Edmunds Member Posts: 38,514
    Hi lej1447. The price that you were quoted for the Q7 is definitely not below dealer invoice. Perhaps it is after all sorts of advertising and other fees are added in. Having said that, the price that you were quoted is still pretty good, especially if the dealer that you're working with had to swap for the model that you want. The lease program that you were quoted is right in line with Audi Financial Services' current program for this model.

    Car_man
    Host
    Prices Paid Forum
  • CarMan@EdmundsCarMan@Edmunds Member Posts: 38,514
    Here's the information that you're looking for, shoprey85. 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 52%, respectively. The residual value for a lease with only 12,000 miles per year would be 2% higher. $500 over dealer invoice would be a very good price for this truck. That's a good target to shoot for, but don't be disappointed if you have to pay a little more than that. Make sure to stop by the following discussion to see how much other community members have paid for similar trucks lately: "Audi Q7: Prices Paid & Buying Experience".

    Car_man
    Host
    Prices Paid Forum
  • CarMan@EdmundsCarMan@Edmunds Member Posts: 38,514
    You're absolutely right, ny_driver. Audi has been making up for its below average residual values on the A6 and Q7 with extremely low money factors. Good lick in your negotiations.

    Car_man
    Host
    Prices Paid Forum
  • CarMan@EdmundsCarMan@Edmunds Member Posts: 38,514
    Hello rocco50. Audi's special lease money factors on the Q7 are the same for Premium and non-Premium models.

    Car_man
    Host
    Prices Paid Forum
  • lej1447lej1447 Member Posts: 16
    Hi Car_man. Thank you for the reply.

    Oh darn it, I was hoping to be somewhere in the neighborhood of $500 above invoice. Any how, leasing contract does not list every padded or hidden cost, possibly such as ad fee and any other added in.

    You mentioned about good quoted price given dealer swapping models. Would you please give me a little explanation why such was the case?

    BTW, is it worth it to buy the Audi Care at this point, considering the cost of regular maintenance at intervals of 15K, 25K, 35K, and 45K (if I purchase the car after 36K mi lease)?

    I'm still learning. Thank you so much.
  • mikeoc1mikeoc1 Member Posts: 46
    If you are going to lease, absolutely add Audi Care. It will add 1% to the residual value. This virtually eliminates the additional $550 cost. In my deal, my payment actually went down $0.30/month by adding AudiCare. Now I don't have to pay $100-$150 at the scheduled maintenace intervals.
  • 0audilicious00audilicious0 Member Posts: 47
    Something to consider is that you have to pay for the fourth year of registration for only 3 months of use. May or may not be a factor for you, but that equates to several hundred dollars.
  • mikeoc1mikeoc1 Member Posts: 46
    Good point. I just had to do that for my 39 month Mercedes Lease. Although it was only $49.50 for New Jersey.
  • rocco50rocco50 Member Posts: 21
    Thank you Car_man! I am also looking at the FX35, I just posted my figures that I got, please tell me what you think.
  • rocco50rocco50 Member Posts: 21
    I've been reading some messages about the extra three months on the infiniti fx35 lease forum made by exaudiowner, see if his reasoning against it makes sense to you.
  • mikeoc1mikeoc1 Member Posts: 46
    I've read it and I don't think that he is correct.

    Let's take a scenario and run it.

    MSRP 60,000
    Selling Price 58000
    MF 0.00125
    Residual Value 55%
    Taxes 7%

    Let's say the residual value is the same for 36 months and 39 months. This is the way it was on my current lease.

    From Lease Calculator

    For 36 month lease, the monthly payment would be $864.76. Let's assume that all of the upfront fees are the same, in this case $0. 36 $864.76 payments = $31,131.36 total cost of the lease.

    For a 39 month lease, the montly payment would be $807.61. 39 $807.61 payments = $31,496.79

    You are payment a little more in total payments because you are using their money for 39 months instead of 36 months.

    The depreciation cost is the same. You are paying it over 39 months instead of 36, so the payment is lower, but you make more payments.

    If the residual value is much lower on a 39 vs 36, then you have the analyze the two and see which is better.

    This scenario costs you $365 over 39 months to have a payment that is $57/month lower.
  • rocco50rocco50 Member Posts: 21
    I agree, thats the way I look at it.

    Do you know if I should be paying both the Destination Charge and the Acquisition (Bank) Fees, or just one of them? Should this fee(s) be capitalized as a part of my Net Cap, or paid up front?

    Please look at my numbers that I got from the dealer yesterday:

    http://tinyurl.com/33h269

    The dealer said he's charging me $300 over invoice, yet the Net Cap includes the Tax amount...

    I also have the right to give them multiple security deposits to reduce my MF ?
  • mikeoc1mikeoc1 Member Posts: 46
    I do believe that the adjusted cap cost includes the taxes. I'm unsure about what fees are capitalized.

    As for the MSDs, they should be allowed but check on their program. For instance, a Mercedes dealer told me that for them, MSDs reduce their base money factor. If MB Financial is offering a subsidized money factor, MSDs do not lower the subsidized rate, making them a non-factor.

    I know for sure that BMW and Audi allow for MSDs to reduce whatever the rate they offering.
  • rocco50rocco50 Member Posts: 21
    Apparently NJ taxes can be paid up-front instead which is what I am planning to do so they don't get capitalized. However.. I test drove the Mercedes ML 350 today and fell in love with it. I think I may be getting really good offers on the FX though, so only if Merc can match it..

    Could someone please post the current money factor and residuals on the ML, I checked the M forum but its dead.
  • mikeoc1mikeoc1 Member Posts: 46
    The ML is a beautiful looking car. The fit and finish isn't as good as Audi. The deal breaker for me, though, is the God Awful COMAND interface. Make sure you test out the navigation system and all of it's functions. To me, it was so bad that it took the ML out of the running.
  • mikeoc1mikeoc1 Member Posts: 46
    Here you go

    http://www.mbworld.org/forums/forumdisplay.php?f=73
  • homantaghomantag Member Posts: 21
    I just walked out of the dealership with the following deal, let me know how I got jipped (or not):

    Q7 3.6 Premium
    Infotainment Package
    Convenience Package
    Technology Package
    Panoramic Roof
    20" Rims
    4-Zone Climate
    3rd Row Seats
    Towing Package
    Ipod Integration
    Quartz Grey Metallic Paint (Light Grey Interior)

    MSRP came to $59,150, sale price $55,417.97 (supposedly at invoice). Total drive off at $1,000, and monthly payments at$708.60 (plus tax, for total of $767.06). Lease term is 36 months, with 12k miles per year. I also added the Audi Care Package (basically came out to free when they bumped the residual in excahnge).

    I am in California. Car_Man, what do you think?
  • dhamiltondhamilton Member Posts: 878
    good to me, it's a lot of car for the money.......enjoy
  • msagmsag Member Posts: 7
    My cousin has a 2002 BMW X5 with the parking assist control and of course got spoiled parking her truck in the tight places in LA, which by the way did not prevent her from getting all kinds of dings on the doors… I was wondering if she can lease any other truck and have a Parking Assist Control installed as an aftermarket accessory and don’t mess up her lease. I remember from my previous leases it was some kind of a stipulation on my lease that did not allow any modifications on the vehicle. Thanks for your help!
  • rocco50rocco50 Member Posts: 21
    I am looking to get a base model, I'll use the nav on my treo. I don't even car for the sunroof. The MB dealers are hard-of-hearing, the Infiniti dealers are a lot more responsive. The Q7 is a very sharp-looking truck, its just that I haven't been too pleased with audi in the past...

    Is there anything I should be aware of if I plan to make the multiple security deposits..to make sure I get them back? :)

    Thanks for the link btw!
  • jasonrhcastlejasonrhcastle Member Posts: 5
    Hey guys...New here. My wife and I are looking to get a Q7. We like the S-Line package, but have been told it has a negative impact on the residual. Here what we are looking for with and without S-Line:

    3.6 Premium
    Infotainment
    Tech
    Tow
    Cricket Leather
    Music Interface
    20 inch wheels

    What would I be looking at in payments with zero down over 39 months?

    Also homantag, what is the name of your dealer?
  • dhamiltondhamilton Member Posts: 878
    What is the MSRP, and your negotiated selling price? That's how we determine your monthly.

    Go to "10 steps to leasing" here on Edmunds and it will help you out a lot.

    S-line decreases your residual but there are ways around it. Pay 500 for the Audi pre-paid service and that about negates the extra S-line cost.
  • jasonrhcastlejasonrhcastle Member Posts: 5
    Here are the specs:

    3.6 Premium
    Infotainment
    Tech
    20 inch wheels
    Convenience
    Tow
    Paddle shifters
    Audi interface

    MSRP: $56100 Negotiated: $52700

    4.2 Premium
    20 inch wheels
    Paddle shifters
    Audi interface
    Tow Package

    MSRP: $62950 Negotiated: $59000

    Or, I could do Regular 4.2
    s-ling
    Nav
    Tech
    Cold weather
    Sirius
    Tow
    Audi

    MSRP: $60,010 Negotiated: $56300

    If I use the s-line package is subtract $800 from the 4.2 and adds $2000. If I use on the 3.6, it subtracts $1600 and adds $2900.

    Does this help....?
This discussion has been closed.

Helpful Tools

Most popular vehicles