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Prices Paid: Buying & Leasing Experiences Audi Q7 Lease Questions
813 messages, Last post on Nov 11, 2009 at 6:11 AM
You are in the Prices Paid: Buying & Leasing Experiences Forum. Your Hosts are car_man & kyfdx
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Replying to: anderlecht (Feb 17, 2007 8:29 pm) 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.
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| 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 | |
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Replying to: kris17 (Feb 18, 2007 9:40 am)
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Replying to: hoosbest (Feb 18, 2007 3:54 pm) Thanks
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Replying to: cwa318 (Feb 18, 2007 6:28 pm) |
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Replying to: hoosbest (Feb 18, 2007 7:42 am)
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Replying to: hoosbest (Feb 18, 2007 3:54 pm) 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.
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Replying to: anderlecht (Feb 17, 2007 8:29 pm) 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! |
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Replying to: kris17 (Feb 18, 2007 9:40 am) 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. |
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Replying to: anderlecht (Feb 18, 2007 9:01 pm)
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