A6 to S7..First time lessee questions.
06-04-2016, 04:42 PM
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A6 to S7..First time lessee questions.
I currently have 11 months left on my '14 A6 P+. Doing early homework, Ive considered the Panamera, Q7 and ulimately the MY17 S7. Using the '17 order guide, Ive specced up to $95k. With ACNA and incentives, I'm looking to be around $88k out the door on a lease. My questions are, is it too early too begin the order process?? Local dealer says 4-5 months on an S7 build. Also, the A6 was my first lease so I'm trying to navigate the waters of going into another lease. I'm thinking late December would be the sweet spot to start the process with minimal hit coming out of my current lease. Any tips or suggestions would be helpful.
Last edited by BigDawg; 06-08-2016 at 01:59 PM.
06-08-2016, 05:04 PM
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I currently have 11 months left on my '14 A6 P+. Doing early homework, Ive considered the Panamera, Q7 and ulimately the MY17 S7. Using the '17 order guide, Ive specced up to $95k. With ACNA and incentives, I'm looking to be around $88k out the door on a lease. My questions are, is it too early too begin the order process?? Local dealer says 4-5 months on an S7 build. Also, the A6 was my first lease so I'm trying to navigate the waters of going into another lease. I'm thinking late December would be the sweet spot to start the process with minimal hit coming out of my current lease. Any tips or suggestions would be helpful.
I would still have the conversation with the manager to make sure everyone is clear on what ou will be on the hook for in that case.
Also, there is a company (I forget their name) that Audi has you call when you are approaching lease end. They come out and do an independent writeup on the condition of your car (apparently Audi felt the dealers have too much conflict of interest in that department). So you will probably have to do that as well?
06-09-2016, 04:31 AM
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If you want to start now and, let's say, your new one comes in 6 months before your lease is up, I have had Audi dealers offer to prorate the remaining time on the lease. I have never taken them up on it so I don't know how well that actually works out, but with BMW and Mercedes I have never had anyone even offer that.
I would still have the conversation with the manager to make sure everyone is clear on what ou will be on the hook for in that case.
Also, there is a company (I forget their name) that Audi has you call when you are approaching lease end. They come out and do an independent writeup on the condition of your car (apparently Audi felt the dealers have too much conflict of interest in that department). So you will probably have to do that as well?
I would still have the conversation with the manager to make sure everyone is clear on what ou will be on the hook for in that case.
Also, there is a company (I forget their name) that Audi has you call when you are approaching lease end. They come out and do an independent writeup on the condition of your car (apparently Audi felt the dealers have too much conflict of interest in that department). So you will probably have to do that as well?
06-09-2016, 06:27 AM
#5
I have had two of my last 5 Audi’s bought by the dealer as early lease terminations. I believe they are looking for low mileage, excellent condition vehicles only. A few things I learned:
- When the dealer takes the car in an early lease termination you do not need a lease end inspection; in fact do not schedule one. That inspection may put in writing some defect the dealer might miss.
- Make sure you start out by getting a deal/price based on the assumption of waiting for lease end to get the new car. Tell them you will think about it for a few days before ordering a 2017, then come back and start the process of early lease termination. This will give you a benchmark so you can see if they are killing you on the early termination deal.
- My sense is that I likely paid $15-20/month more because of the early termination, but for me it was worth it to get into a new car 3 or 4 months sooner.
- If you get Audi Care it will add 1% to the car’s residual which has the effect of lowering the monthly payment. This may not sound like much, but on an $80K-plus car it can go a long way toward paying for the Audi Care.
- My experiences with early termination involved be getting new cars that were in stock or already ordered by the dealer. It may be they were more willing to deal on a car that they were already paying for, but may not be as “generous” on a customer order – maybe it does not matter.
- Lastly, I checked the dealer’s used inventory online to see if they had a bunch of the same model/year/color car as was looking to get out of. In your case if you know the dealer has no 2014 A6 P+’s in their used/pre-owned inventory you could expect them to be a bit more willing to buy out your lease.
- When the dealer takes the car in an early lease termination you do not need a lease end inspection; in fact do not schedule one. That inspection may put in writing some defect the dealer might miss.
- Make sure you start out by getting a deal/price based on the assumption of waiting for lease end to get the new car. Tell them you will think about it for a few days before ordering a 2017, then come back and start the process of early lease termination. This will give you a benchmark so you can see if they are killing you on the early termination deal.
- My sense is that I likely paid $15-20/month more because of the early termination, but for me it was worth it to get into a new car 3 or 4 months sooner.
- If you get Audi Care it will add 1% to the car’s residual which has the effect of lowering the monthly payment. This may not sound like much, but on an $80K-plus car it can go a long way toward paying for the Audi Care.
- My experiences with early termination involved be getting new cars that were in stock or already ordered by the dealer. It may be they were more willing to deal on a car that they were already paying for, but may not be as “generous” on a customer order – maybe it does not matter.
- Lastly, I checked the dealer’s used inventory online to see if they had a bunch of the same model/year/color car as was looking to get out of. In your case if you know the dealer has no 2014 A6 P+’s in their used/pre-owned inventory you could expect them to be a bit more willing to buy out your lease.
06-09-2016, 07:16 AM
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I have had two of my last 5 Audi’s bought by the dealer as early lease terminations. I believe they are looking for low mileage, excellent condition vehicles only. A few things I learned:
- When the dealer takes the car in an early lease termination you do not need a lease end inspection; in fact do not schedule one. That inspection may put in writing some defect the dealer might miss.
- Make sure you start out by getting a deal/price based on the assumption of waiting for lease end to get the new car. Tell them you will think about it for a few days before ordering a 2017, then come back and start the process of early lease termination. This will give you a benchmark so you can see if they are killing you on the early termination deal.
- My sense is that I likely paid $15-20/month more because of the early termination, but for me it was worth it to get into a new car 3 or 4 months sooner.
- If you get Audi Care it will add 1% to the car’s residual which has the effect of lowering the monthly payment. This may not sound like much, but on an $80K-plus car it can go a long way toward paying for the Audi Care.
- My experiences with early termination involved be getting new cars that were in stock or already ordered by the dealer. It may be they were more willing to deal on a car that they were already paying for, but may not be as “generous” on a customer order – maybe it does not matter.
- Lastly, I checked the dealer’s used inventory online to see if they had a bunch of the same model/year/color car as was looking to get out of. In your case if you know the dealer has no 2014 A6 P+’s in their used/pre-owned inventory you could expect them to be a bit more willing to buy out your lease.
- When the dealer takes the car in an early lease termination you do not need a lease end inspection; in fact do not schedule one. That inspection may put in writing some defect the dealer might miss.
- Make sure you start out by getting a deal/price based on the assumption of waiting for lease end to get the new car. Tell them you will think about it for a few days before ordering a 2017, then come back and start the process of early lease termination. This will give you a benchmark so you can see if they are killing you on the early termination deal.
- My sense is that I likely paid $15-20/month more because of the early termination, but for me it was worth it to get into a new car 3 or 4 months sooner.
- If you get Audi Care it will add 1% to the car’s residual which has the effect of lowering the monthly payment. This may not sound like much, but on an $80K-plus car it can go a long way toward paying for the Audi Care.
- My experiences with early termination involved be getting new cars that were in stock or already ordered by the dealer. It may be they were more willing to deal on a car that they were already paying for, but may not be as “generous” on a customer order – maybe it does not matter.
- Lastly, I checked the dealer’s used inventory online to see if they had a bunch of the same model/year/color car as was looking to get out of. In your case if you know the dealer has no 2014 A6 P+’s in their used/pre-owned inventory you could expect them to be a bit more willing to buy out your lease.
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06-10-2016, 04:45 PM
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Awesome information. I'm toying with the idea of leasing the car I want to buy in 3 years. I've heard good and bad on this strategy. Also read that Audi does not negotiate on the residual purchase price so that can be risky. Being that the S7 is not "common", is there the likelyhood of me being able to get a "deal" on it at lease end? Audi care is definitely on the list. I will likely pay for it up front especially if I can haggle on the price. Thanks again and if there is anything else you can add, I would greatly appreciate it.
Given the low interest rates these days, the net cost of leasing vs buying tends to be pretty negligible either way in my book. The truth is your primary 'expense' is the depreciation of the vehicle. Everything else pales in comparison to that one
06-10-2016, 06:05 PM
#9
You are correct that the residual is basically fixed (assuming AFS) by Audi. That leaves what the dealer is willing to do in terms of the sell price and what rebates & other incentives they are willing to let you know about and perhaps stretch a bit to get for you (things like telling you to wait a week for an anticipated incentive’s effective date).
Conventional leasing wisdom says to get down to the dealer’s lowest selling price as part of the lease negotiation. As I mentioned in an earlier post I prefer to fake out the dealer and say I am buying to make sure the price is their lowest, then switch gears and say I am leasing.
There are formulas for calculating leases that all require the following information: MSRP; Initial Capital Cost/selling price after all rebates and incentives; fees like bank fee; other cash down; Money Factor (MF) (you can try to get the best one by getting your credit rating up there and pushing the dealer to get the lowest MF); miles per year; whether any state or local sales tax is to be included in the lease or paid up front (that is what I do). Once you get the information on all this from the dealer near the end of the negotiation process in the Deal Sheet, you can plug the numbers in and verify that the monthly payment is what it should be.
This is the lease calculator I used and the result was the monthly lease negotiated with the dealer was actually $.04 a month less than my calculator said it should be:
RIDE with G Auto Lease Calculator
There are formulas for converting from Money Factor to interest rate that you can find searching this forum. There used to be a list of AFS’s money factors posted on this board from time to time, but I have not seen them in a while.
Also, remember that once you have been a member of the Audi Club of North America for 6 months you get 6% off MSRP for most Audi models (some like RS7 are excluded). You get this 6% plus whatever other discounts, rebates and incentives (freebees like floor mats?) you get from the dealer.
Conventional leasing wisdom says to get down to the dealer’s lowest selling price as part of the lease negotiation. As I mentioned in an earlier post I prefer to fake out the dealer and say I am buying to make sure the price is their lowest, then switch gears and say I am leasing.
There are formulas for calculating leases that all require the following information: MSRP; Initial Capital Cost/selling price after all rebates and incentives; fees like bank fee; other cash down; Money Factor (MF) (you can try to get the best one by getting your credit rating up there and pushing the dealer to get the lowest MF); miles per year; whether any state or local sales tax is to be included in the lease or paid up front (that is what I do). Once you get the information on all this from the dealer near the end of the negotiation process in the Deal Sheet, you can plug the numbers in and verify that the monthly payment is what it should be.
This is the lease calculator I used and the result was the monthly lease negotiated with the dealer was actually $.04 a month less than my calculator said it should be:
RIDE with G Auto Lease Calculator
There are formulas for converting from Money Factor to interest rate that you can find searching this forum. There used to be a list of AFS’s money factors posted on this board from time to time, but I have not seen them in a while.
Also, remember that once you have been a member of the Audi Club of North America for 6 months you get 6% off MSRP for most Audi models (some like RS7 are excluded). You get this 6% plus whatever other discounts, rebates and incentives (freebees like floor mats?) you get from the dealer.
Last edited by irenesbob; 06-10-2016 at 06:07 PM.
06-14-2016, 12:17 AM
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The residual is pretty much a fixed and non-negotiable number. On the other hand there is very little 'risk' on your end. If at the end of the lease it doesn't seem to you like the car is worth the amount of the residual then you just turn it in. If it seems like a good deal then you buy it out. Easy as that.
Given the low interest rates these days, the net cost of leasing vs buying tends to be pretty negligible either way in my book. The truth is your primary 'expense' is the depreciation of the vehicle. Everything else pales in comparison to that one
Given the low interest rates these days, the net cost of leasing vs buying tends to be pretty negligible either way in my book. The truth is your primary 'expense' is the depreciation of the vehicle. Everything else pales in comparison to that one
You are correct that the residual is basically fixed (assuming AFS) by Audi. That leaves what the dealer is willing to do in terms of the sell price and what rebates & other incentives they are willing to let you know about and perhaps stretch a bit to get for you (things like telling you to wait a week for an anticipated incentive’s effective date).
Conventional leasing wisdom says to get down to the dealer’s lowest selling price as part of the lease negotiation. As I mentioned in an earlier post I prefer to fake out the dealer and say I am buying to make sure the price is their lowest, then switch gears and say I am leasing.
There are formulas for calculating leases that all require the following information: MSRP; Initial Capital Cost/selling price after all rebates and incentives; fees like bank fee; other cash down; Money Factor (MF) (you can try to get the best one by getting your credit rating up there and pushing the dealer to get the lowest MF); miles per year; whether any state or local sales tax is to be included in the lease or paid up front (that is what I do). Once you get the information on all this from the dealer near the end of the negotiation process in the Deal Sheet, you can plug the numbers in and verify that the monthly payment is what it should be.
This is the lease calculator I used and the result was the monthly lease negotiated with the dealer was actually $.04 a month less than my calculator said it should be:
RIDE with G Auto Lease Calculator
There are formulas for converting from Money Factor to interest rate that you can find searching this forum. There used to be a list of AFS’s money factors posted on this board from time to time, but I have not seen them in a while.
Also, remember that once you have been a member of the Audi Club of North America for 6 months you get 6% off MSRP for most Audi models (some like RS7 are excluded). You get this 6% plus whatever other discounts, rebates and incentives (freebees like floor mats?) you get from the dealer.
Conventional leasing wisdom says to get down to the dealer’s lowest selling price as part of the lease negotiation. As I mentioned in an earlier post I prefer to fake out the dealer and say I am buying to make sure the price is their lowest, then switch gears and say I am leasing.
There are formulas for calculating leases that all require the following information: MSRP; Initial Capital Cost/selling price after all rebates and incentives; fees like bank fee; other cash down; Money Factor (MF) (you can try to get the best one by getting your credit rating up there and pushing the dealer to get the lowest MF); miles per year; whether any state or local sales tax is to be included in the lease or paid up front (that is what I do). Once you get the information on all this from the dealer near the end of the negotiation process in the Deal Sheet, you can plug the numbers in and verify that the monthly payment is what it should be.
This is the lease calculator I used and the result was the monthly lease negotiated with the dealer was actually $.04 a month less than my calculator said it should be:
RIDE with G Auto Lease Calculator
There are formulas for converting from Money Factor to interest rate that you can find searching this forum. There used to be a list of AFS’s money factors posted on this board from time to time, but I have not seen them in a while.
Also, remember that once you have been a member of the Audi Club of North America for 6 months you get 6% off MSRP for most Audi models (some like RS7 are excluded). You get this 6% plus whatever other discounts, rebates and incentives (freebees like floor mats?) you get from the dealer.
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