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Audi Q7, Car Leasing, Car Buying, SUV
#448 of 1080 Lease negotiation
Sep 03, 2007 (6:16 pm)
If I can get out to try to negotiate a 36 month lease tomorrow (Sept 4), can someone tell me if the following is a fair deal, or is it unrealistic?
They have a 2007 Q7 (3.6 Premium) with the following options:
Sunroof, Infotainment Nav, 4 zone climate, 3rd row seating, 19" wheels, rear side airbags, convenience package. It says the MSRP is about $56000, invoice would be around 51700.
I read on here that there is an offer available for $4000 below invoice, bringing the cap cost to $47700.
I read on here the residual with Audi Care is 0.52, which would be $29154.
I read on here that if you take the $4000 below invoice, you can't get the low MF, so would a MF of 0.00165 (~3.96%) be a reasonable expectation?
Using an online lease calculator, I calculate the following:
Capitalized Cost: 47719 (56010 MSRP minus discount)
Residual Value: $ 29154.00 (after 36 months)
Depreciation Fee:$ 515.69 - part of lease payment
Lease Fee: $ 124.92 - part of lease payment
Monthly Payment :$ 640.61 without tax
Usage Tax: $ 19.22 over full loan (3.00 % of 18565.00)
Total Monthly Payment: $ 659.83 including tax
So is a $640/mo payment (without tax) a reasonable expectation for this vehicle? Were any of my assumptions wrong? Is it unlikely that I can reach this deal in Charlotte, NC where there are no other local dealers for competition?
If I take the 0.00014 MF and negotiate $500 over invoice, the payment would seem to be about $10/mo higher so I guess I could go that way too. I qualify for tier 1, but is $500 over invoice reasonable for the 2007s?
With either case, what would I be looking at for initial payment? First month payment + $590 audi care + $575 acq + one month payment security deposit?
Would this be 12k miles/year for these figures? 10k miles/year?
Thanks, there is a lot of information on here, but I can't tell what is still valid and what has expired. Is there anything on here that will be valid Sept 4, but not Sept 5?
#449 of 1080 Re: Lease negotiation [woolooloo]
Sep 04, 2007 (3:05 am)
Woolooloo, there is some information about the $4000 deal and special lease rates on the Costco Auto website. Here's a direct link (click on Audi and Q7):
I have read a lot about 1k below invoice PLUS the 4K deal, which in effect is 5K below invoice. There should only be a few '07s left over and the '08s are coming in. The dealer (competition or not) should be encouraged to move those cars.
If you need a good lease calculator, go to leasecalc.com, they have an awesome calculator!!
#450 of 1080 Re: Lease negotiation [woolooloo]
Sep 04, 2007 (5:36 am)
I would say it all depends on your dealership. That special lease has been the same since April of 2007. So who knows how it might be after Sept 4. The only thing I can say is the 2007s model ones might be limited since 2008s are available now.
And yes, if your area has move than 1 Audi Dealerships, it helps a lot to shop around and get a better deal. And yes, based on your calculation, it's safe to say that the monthly payment is as such. Give and take $20 per month. Since you have an idea on the number now, so go ahead and go negotiate based on that number in mind. Good luck!
#451 of 1080 Re: Lease negotiation [houstontxmob]
Sep 04, 2007 (12:07 pm)
Thanks for the advice guys. I sent an offer for this exact deal via email to the dealer and told them that was my offer and not to contact me unless they accepted it. They took it, so I've got that one at $660/month 36 months and 15k miles/year (that part was better than I expected). Was around $1900 for initial payment - I still need to check what all is in that because either they added Audi Care into the payment and kept the payment the same, or they didn't charge me a security deposit or an acquisition fee, not sure which without going through the paperwork closer. I think it's pretty good for a $56k car with that kind of mileage limit, but maybe I could have done better. I'm happy anyways. Thanks for the info on this board - hopefully my deal helps someone else.
#452 of 1080 Re: Lease negotiation [woolooloo]
Sep 04, 2007 (2:40 pm)
Good luck! Take pictures once u gotten it. Keep us posted.
#453 of 1080 Re: Lease negotiation [houstontxmob]
Sep 06, 2007 (5:32 am)
Here are the details of what I got.
Cap cost $49525 (around $2200 below invoice)
Other financed charges ($575 acq, $590 Audi Care)
Gross cap cost $50690
Residual value $28005 (50%)
Money factor 0.00014 (0.336% interest rate equivalent)
Monthly payment (without sale tax) $641.16
Initial payment = first month + $675 security deposit + $69 title/license + $513.97 processing fee/tax
Anyways, I think it is a good deal, not sure if it is a great deal. But I hope this information is helpful to others trying to negotiate a deal. I know the info I got off the board about other deals was invaluable.
So based on my initial assumptions, I got more off invoice, but didn't get the 52% residual. I got the payment I wanted which is what I cared about, and having the lower residual will make purchasing the vehicle at the end more appealing (though I have never done so on a previous lease). I wonder if I could have gotten this cap cost and the 52% residual with better negotiating though. It is probably a goal for the next person!
I bought the car sight unseen and ended up a little disappointed. I've had voice activated bluetooth on my BMW for a couple years, so I thought it was going to be included in the bluetooth package for the Audi - wrong. Dialing via the MMI interface is going to be a pain versus just saying "Dial Home" or whatever. Likewise I didn't realize it didn't have a backup camera until I had already bought it (didn't back up during the test drive). It was on some of the cheaper vehicles I was looking at so I thought it was going to be included. I guess it is my fault for not looking closely enough at the different option packages. The other thing is the Sycamore Green is very much like my BMW and I wanted something different. Their website just said "green" and it's not what I expected. I really wanted IPod integration, but the '07s they had with that and the technology package were at least another $5000. They told me that will be available as a dealer installed option soon, although I'm not sure if they were just telling me what I wanted to hear.
Good luck everyone!
#454 of 1080 Re: Lease negotiation [woolooloo]
Sep 06, 2007 (5:51 pm)
That's kinda disappointing that you didn't get what you wanted.
But please explain it to me, what does your Q7 equipped with? Mine is the 2007 Q7 3.6 Premium, Silver exterior and interior, Infotainment, Technology, Convenience Package, 4-Zone Climate Control, Ipod Interface ($300 more), 19" Alloy w/all season tires, 3rd row seats and it's pretty loaded except I don't have the sunroof which I didn't want it. I'm assuming yr car doesn't have the Technology package ($2400 extra). But u had the sunroof ($2800 more).
And my Q7's MSRP was $55,805. You might want to ask them is it possible to retrofit the Ipod interface, it seems to me that it's very reasonable. Anyway, I think you did VERY well on negotiating the final car price.
Check it out, good luck and congratulation again!
#455 of 1080 Re: q7 lease 2 questions [houstontxmob]
Sep 07, 2007 (2:05 pm)
you were right
the price i just got on a 2008 Q7 3.6 prem - which now has ipod/sirius/bluetooth
pan roof audi care
sell price 48,753
res 52% money factor .00075
726 month 36 months 12k miles inc tax
1761 due at signing for first mo/575 bank fee/110 doc fee etc
#456 of 1080 Re: q7 lease 2 questions [mediaman1]
Sep 08, 2007 (4:32 am)
Sorry dude, I really have no clue about 2008 model vehicles. But it's like buying a brand new car (2008), lots of dealers are willing to reduce more $$ on 2007 ones and still sell 2008 ones on MSRP, which I don't blame them at all.
#457 of 1080 Re: Lease negotiation [houstontxmob]
Sep 09, 2007 (7:25 pm)
houstontxmob - you are right, you got the technology and ipod packages, I got the sunroof. Like you, I would gladly swap those as I have found through the years I never use sunroofs (it is a pretty amazing sunroof though, just not my thing). Unfortunately I didn't know until it was too late that I really wanted the technology package (and they didn't have any left in my price range anyways). They say the IPod interface is supposed to be available for retrofit at some point, but it isn't yet.
Oh well, life goes on. I'm dealing with a bunch of noises coming from the back now, and I'm going to check out the other Q7 forums to see if it is common. Take care.