Last post on May 19, 2013 at 8:59 PM
You are in the Prices Paid - Buying & Leasing Experiences
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Audi Q7, Car Leasing, Car Buying, SUV
#243 of 297 Q7 Lease Pricing
Feb 11, 2010 (7:40 pm)
I have a 2007 Q7 thats lease is about to expire and I am in the process of looking for a new car. I've leased a bunch of cars in the past and it used to be be that I could eventually get a car for 1% of the MSRP/month give or take $50. In other words the Audi was $58K (3.6, tech, nav, etc). My lease was $630/month with basically nothing down (fees etc put it at about $1K). This was for a 36 month lease with 12K/year.
Prior to that I had a BMW 528 Wagon (MSRP $53K). Same lease parameters made the car payment at $503/month. (walked out the door for less than $1k out of pocket). (I don't play the "cap reduction" game).
So here's my question. WHY ARE LEASES SO MUCH MORE NOW? Are money factors through the roof, are manufactures shying away from leases as they have a liability associated with them?
With the economy in the dumps and interest rates so low I would think leases would be even more attractive. Am I missing something or is the dealer true when he said that it's different now?
It seems that over the past 6-8 years leases have become less and less appealing.
#244 of 297 Re: Q7 Lease Pricing [mloca]
by kyfdx HOST
Feb 12, 2010 (5:20 am)
Manufacturer's captive finance companies have lost money for years on inflated residuals (which help make for lower lease payments)..
With the credit crisis, many car makers just couldn't keep taking the hit.. Between the GM/Chrysler bankruptcies, and a lot of other makes getting out of the banking business, the price of leasing has gone up.
Many makes only lease through independent banks. Those banks have to turn a profit, not just subsidize the business of the automaker, like the captive companies..
Cheap leases are few and far between... 1% of MSRP is a good rule of thumb, but very hard to achieve in this environment. For most models, it makes more sense to buy than lease.
#245 of 297 Re: Q7 Lease Pricing [mloca]
Feb 12, 2010 (5:44 pm)
Most of the captive finance companies are unable to securitize their debt anymore with the collapse of the securitization market. That was the biggest source of cheap financing for the auto makers for years. Spreads are still tremendous vs 2008 levels. In the past, the captive finance companies could pass on that cheap cost to customers.
Yes, interest rates are lower but banks are not rushing to lend auto makers money at any price. Audi/VW is one of the stronger credits but they are feeling it too.
#246 of 297 2010 Q7 Terms/Rates/Residuals
Feb 18, 2010 (5:15 pm)
Looks like there are many of us with 2007 Q7s that are coming off lease, and need to decide whether to buy what we have, or try to get a new one.
The suplly keeps getting lower and lower. I have looked all over (live in CA, and looked as far as FL and IL), and there are literally no more than a handful out there (with the options that I want).
No dealer I have spoken to will take less than MSRP (best they will do is honor loyalty incentives). The lease rates are not that great, and seem to end up costing almost as much as a purchase.
If anyone has been able ot lease or purchase recently, and can share their figures (model, options, MSRP, down, drive off, miles/yr, residual, and MF), it would be greatly appreciated.
I also heard that AFS is offering a 48 month lease now (instead of a 36 month max).
Car Man, any news on this, and what the residuals and rates are (for both lease and purchase for 48, 60, and 72 months)?
Mar 04, 2010 (10:02 pm)
Looking for Q7 in So cal right now. Every dealer is stating the low supply and not eager to make deals. Any recent purchasing experiences guys? How much below MSRP shall I reasonably expect?
#248 of 297 Re: 2010 Q7 Terms/Rates/Residuals [homantag]
Mar 05, 2010 (7:27 pm)
We just purchased a Audi TDI Premium Plus from Checkered Flag in Virginia Beach. We worked directly with the sales manager there and he was great- he answered all our questions and tried hard to provide as much discount as he could. We ended up ~$1000 over invoice....I wasn't sure how good the price was but I had three other dealers not budge of MSRP for the deisels...with Checkered Flag they allowed me to get the lower price and ordered the car so I could get my exact specs and color I wanted
I am not sure if any of you have used the American Express Car Buying Program- but its free and they give you a no haggle certificate for a price and its always somewhere between invoice and $1500 above invoice....for BMW x5 I got a price from the site of $9000 below MSRP.
#249 of 297 Re: 2010 Q7 Terms/Rates/Residuals [norfolkaudi]
Mar 06, 2010 (9:10 am)
Amazing that in todays economy they arent budging off MSRP... I guess its all supply & demand assuming is not a dealer stated supply & demand. Being able to order what you want is fantastic too!! I will only deal with sales managers now. The days of sitting in a room while the sales advisors goes back & forth with the sales manager are gone for me. Either go get him or Im walking. Congratz, and thanks for the Amex info as well. Was told by BMW & Mercedes dealers that they "only sell for MSRP"... Uh huh, sure. Car sales, gotta love it as much as stepping on a rusty nail. The difference is the rusty nail makes no false promises and tells you no lies... Ok off my soap box now. And again, CONGRATZ on your new Q!!!!!! What color,what specs?? They new silver/grey color is amazing.
Apr 22, 2010 (3:11 pm)
Picking up our Q7 TDI on Monday. Wife loves the car and the room. Long Island dealers would only go max of $1000,00 to 2,000.00 off msrp. Dont listen to there nonsense, the car is out there u just have to find it. I ended up in NJ. The car has Nav and panorama roof. Missing was LED in front, which I kind of liked. Also colors where important to us. That is another reason research out of state has to be done. Sometimes your colors are hard to come by. The only thing that I dont like is, Audi doesn't make all weather mats in tan to match my interior. Weather Tech does promote them but they don't have them due to, they have not been redesigned for newer Q7. Does anyone know of a mat company out there where I can get a GOOD durable mat in tan from?????
#252 of 297 Audi NJ
Apr 22, 2010 (6:49 pm)
Check out Town Audi Englewood, NJ give them a call they work with you. Ask for Alec