RS5 - Financing options

[LeoLopezDO]

Ok...So I figured I would start this thread considering now we know the pricing of the RS5.

I am still undecided on lease/purchase. Wanted to see if you guys can help me choose...

Let me say this...i've never had any vehicle longer than 4 years...that is 5 cars...I am only 30 years old. I have ADD when it comes to cars..I realize this is a crippling disease. This car may change that as I have always upgraded and to be honest, how many cars can you upgrade to?...I don't really believe I will ever want/need to spend more than $80k on any vehicle...I have little/no desire for porsche/ferrari, etc.

Anyway...the option of a lease entices me because:

1. the flexibility of walking away if (when?) my ADD kicks in again
2. lower monthly payments
3. I figure I can always purchase at the end of the lease if it seems like the right move...financially or if I still love the car

I know that cars are rarely ever an investment but I have considered purchasing the car because of the limited production and the possibility that this beast will retain decent value in the years to come.

What do you guys think? I have always been told Audis lease terribly...why is that? Any advice/numbers would be appreciated...let's get talking!

-Leo

[mantena]

I think I will buy this car, but i am open to a lease; i just don't think it will be a good lease deal on it. With no money down and taxes up front on a 36 mo lease with 15k miles , i would guess you are looking at 1600/mo

[LeoLopezDO]

GD or anyone with knowledge....

any clue on what the money factor or residual % will be on this on release?

[dmil151]

No brainer... BUY. Book value will always be < Market value for this car. Look at S5's, they depreciate at ~10%/yr. Depreciation rate would need to be ~33%/yr for a 4 yr lease in order for leasing to even start to make sense to me... don't think that'll happen with a limited production car. My bet is in 5 years this car is worth 40-45k and will be paid off.

[mantena]

what kind of rate will audi give for financing??

[dmil151]

I got 2.99% on my S5 in Nov'11, assuming rates will be similar if not slightly lower. Could have gotten 1.99% at the time but no history of auto loans on my credit.

[dmil151]

Hoping I can get the 1.99% since I've been paying on the S5 for 6 months :)

[Beast]

If you think your going to buy the car at the end of the lease term, just forget leasing. If not, lease.

[GotRS?]

If 1.99% is for real I'll finance. If you have cash set aside for purchase you can invest it instead and on average get a better return. Don't flame me on that, over the long term it's true.

Anyone know the qualification for that sort of rate? Top notch credit history obviously; dmil151 says a previous auto loan, which I have had with Audi before but had no idea it would count for anything.

[buiyahkah]

I would definitely buy

[endless5]

If 1.99% is for real I'll finance. If you have cash set aside for purchase you can invest it instead and on average get a better return. Don't flame me on that, over the long term it's true.

Anyone know the qualification for that sort of rate? Top notch credit history obviously; dmil151 says a previous auto loan, which I have had with Audi before but had no idea it would count for anything.

+1 on the 1.9%, but gd mentioned before that it probably wont be offered on a low production car (3.9% is what is offered on the r8) . I guess we'll know for sure in a few days/weeks. Also agreed on the better return with investing, its actually what I'm going to do if the 1.9 ends up being offered

I have good credit, never had a previous auto loan before, and I still got the 1.9% on my s5. depends on the dealer & your relationship with the finance guy I suppose...

[GotRS?]

I would definitely buy

Agreed, but with financing from elsewhere (e.g. home equity) write them a check and get the title, or Audi loan and get the title when paid, or some other auto loan and get the title when paid, or pull out a wad of $100 bills?

I just like that pink slip in my drawer, for no arguable reason really, the pink slip for my house isn't in there!

[B45H1R]

+1 on the 1.9%, but gd mentioned before that it probably wont be offered on a low production car (3.9% is what is offered on the r8) . I guess we'll know for sure in a few days/weeks. Also agreed on the better return with investing, its actually what I'm going to do if the 1.9 ends up being offered

I have good credit, never had a previous auto loan before, and I still got the 1.9% on my s5. depends on the dealer & your relationship with the finance guy I suppose...

check with credit unions for better rates. also check bankrate.com

[ExhaustNote]

My plan has always been to put 40k cash and finance the rest....but if I can get 1.9 or lower, I'll probably finance the whole thing and invest the cash instead.
I'm still in shock with how much cheaper the RS5 base is compared to what we have all been anticipating.

[endless5]

check with credit unions for better rates. also check bankrate.com

Thanks for that, never know about that site. Looks like Bank of America has the best rates on a 3 year finance, 2.74% with a $200 fee

[endless5]

My plan has always been to put 40k cash and finance the rest....but if I can get 1.9 or lower, I'll probably finance the whole thing and invest the cash instead.
I'm still in shock with how much cheaper the RS5 base is compared to what we have all been anticipating.

Yeah.. same here. I guess Audi is really out to put a hurting to the M3 & C63 w/ the price perspective. I think theyve succeeded!

[antoff83]

I think I will buy this car, but i am open to a lease; i just don't think it will be a good lease deal on it. With no money down and taxes up front on a 36 mo lease with 15k miles , i would guess you are looking at 1600/mo

No.I would say 1200-1300 with tax

[antoff83]

My plan has always been to put 40k cash and finance the rest....but if I can get 1.9 or lower, I'll probably finance the whole thing and invest the cash instead.
I'm still in shock with how much cheaper the RS5 base is compared to what we have all been anticipating.

C'mon Brian you gotta be dancing like jusdebleu ,not in shock otherwise do you want me to call them and ask for price increase then

[antoff83]

Im thinking to lease as well..keep it for 3yrs with low payments and then replace with RS7 in 2015

[yas]

Im thinking to lease as well..keep it for 3yrs with low payments and then replace with RS7 in 2015

Careful there, no guarantee Audi gives us the RS7. The RS6 should come stateside though.

[endless5]

C'mon Brian you gotta be dancing like jusdebleu ,not in shock otherwise do you want me to call them and ask for price increase then

I think the shock wore off on most of us (me at least). Now to double down at work and be able to make the payments!

[Get Low]

My plan has always been to put 40k cash and finance the rest....but if I can get 1.9 or lower, I'll probably finance the whole thing and invest the cash instead.
I'm still in shock with how much cheaper the RS5 base is compared to what we have all been anticipating.

Extrapolating from Euro and Canadian prices would've put the RS at a $68K to $72K base. Our worry was that that Audi could ignore that and just set a market price in the US. They didn't. When you factor in the strength of the dollar against the Euro, Audi had a lot of room to play. $70,000 US Dollars converted to 47,297 Euro just 12 months ago. Today, $70,000 converts to $55,118 Euro. In hindsight, it's not really a surprise. We can be thankful however, that they didn't decide to just set the highest price the market would bear.

[SantoDomingoS5]

Ok...So I figured I would start this thread considering now we know the pricing of the RS5.

I am still undecided on lease/purchase. Wanted to see if you guys can help me choose...

Let me say this...i've never had any vehicle longer than 4 years...that is 5 cars...I am only 30 years old. I have ADD when it comes to cars..I realize this is a crippling disease. This car may change that as I have always upgraded and to be honest, how many cars can you upgrade to?...I don't really believe I will ever want/need to spend more than $80k on any vehicle...I have little/no desire for porsche/ferrari, etc.

Anyway...the option of a lease entices me because:

1. the flexibility of walking away if (when?) my ADD kicks in again
2. lower monthly payments
3. I figure I can always purchase at the end of the lease if it seems like the right move...financially or if I still love the car

I know that cars are rarely ever an investment but I have considered purchasing the car because of the limited production and the possibility that this beast will retain decent value in the years to come.

What do you guys think? I have always been told Audis lease terribly...why is that? Any advice/numbers would be appreciated...let's get talking!

-Leo

If you need to explain yourself, you can't afford the RS5. You are a dreamer.

[Mr Kram]

everyone's case is different. if you flip cars every two years like i do, leasing is often attractive. good residuals and finance rates couple with dealer incentives could be beneficial for the short term. also, you only pay sales tax for a prorated amount proportionate to the length of your lease. this is a huge deal in CA since we get no tax credit upon resale or trade in. leases are additionally beneficial if you can write it off through your business.

[VicTorious1]

Whether leasing or buying, I would recommend financing as the interest rates are so low. I was going to buy my S5 outright, but got offered 199 basis points for my loan. So I put $25k down and financed the rest. For the RS5, at $75k and 1.9%, if you put under $40k down and finance the rest, over 4-5 years you should be able to get a higher return on your money than 2% even if you pick your own stocks. Money is dirt cheap right now.

[LeoLopezDO]

If you need to explain yourself, you can't afford the RS5. You are a dreamer.

Lol. Man, you are nothing short of a douche. Do the whole forum a favor...shut your mouth, enjoy your third world country, and stop posting.

[antoff83]

Lol. Man, you are nothing short of a douche. Do the whole forum a favor...shut your mouth, enjoy your third world country, and stop posting.

lol

[DinB]

Leasing tends to be a big trend in America due to low rates and high residuals. However, that is rapidly changing. In general, leasing is only good if you plan to keep the car for 3 years or less, have a business to write-off some of the leasing cost towards your business expenses, are stretchning your budget so you assume that a lower monthly payment will get you into your dream car. For a car like this, that you would keep for longer, I would finance.

[DSL_PWR]

Just pay cash. That settles everything.

[endless5]

If you need to explain yourself, you can't afford the RS5. You are a dreamer.

He was just getting ideas on what people are going to do when it comes time to purchase a car. Frankly, I'm sure a lot of us are wondering the same thing (ie: purchase, lease, finance, different ways to go about financing, etc) No need to shut people down like that. For all we know, he might make $400,000 USD a year, or $40,000.

[bknewtype]

Lol. Man, you are nothing short of a douche. Do the whole forum a favor...shut your mouth, enjoy your third world country, and stop posting.

He was just getting ideas on what people are going to do when it comes time to purchase a car. Frankly, I'm sure a lot of us are wondering the same thing (ie: purchase, lease, finance, different ways to go about financing, etc) No need to shut people down like that. For all we know, he might make $400,000 USD a year, or $40,000.

no need to explain to the troll.

[B45H1R]

Just pay cash. That settles everything.

I used to think that when I made enough money to buy a car with cash that would be the day I arrived. My finance guy begs to differ. His take is no one with money buys anything they can finance with someone else's money. Especially if their own money can do more work elsewhere.

Thus all discussion on rate minutae.

[endless5]

no need to explain to the troll.

You're right bk , I got upset :(

I used to think that when I made enough money to buy a car with cash that would be the day I arrived. My finance guy begs to differ. His take is no one with money buys anything they can finance with someone else's money. Especially if their own money can do more work elsewhere.

Thus all discussion on rate minutae.

Absolutely correct...use someone else's money when you can use yours for a greater investment.

[LeoLopezDO]

Back on topic...

I am leaning more towards leasing the car. Wife and I are discussing have a child in the next few years...certainly the RS5 won't be conducive to that...although I can just force her to keep with SUVs =p

Being committed to payments for 4-5 (6?) years and then perhaps bailing after 3 doesn't seem like a smart business move...may cost thousands to sell the car if I remain upside down on it. Then again, low APR may change my mind. I just wish I had money factor/residual numbers in hand...that would help me make a more educated decision.

I agree with most of you guys...if you can get 1.99 or 2.99 percent...why ever pay cash? Conservatively, if you can make 4% elsewhere with your money...then you win by 2%. Cheap/free money is great.

endless, let's just say it is safe to say that i am MUCH closer to that 400 number =p

[gd10]

i expect the money factor on the lease to be around where the tt-rs was, .00195 and the residual in the high 50's... i expect the car to lease between 13-1500..

as for financing, audi never has special rates on low volume rs models, the tt-rs has a standard rate of 3.44% for 60 months with perfect credit. the best thing will be to get a loan from a credit union or outside bank or have your dealer do it for you(expect the dealer to bump the rate to make reserve money)

or just pay cash and have 0% for life

[antoff83]

i expect the money factor on the lease to be around where the tt-rs was, .00195 and the residual in the high 50's... i expect the car to lease between 13-1500..

as for financing, audi never has special rates on low volume rs models, the tt-rs has a standard rate of 3.44% for 60 months with perfect credit. the best thing will be to get a loan from a credit union or outside bank or have your dealer do it for you(expect the dealer to bump the rate to make reserve money)

or just pay cash and have 0% for life

higher 50's residual..you mean 58-59%? if that happens it will be around 1200-1300 I think...no matter MF is higher...residual plays big role

[Mr Kram]

$1300 lease for a $75k car? i would purchase for sure.

[antoff83]

$1300 lease for a $75k car? i would purchase for sure.

will be more if finance..have to include sales tax in your loan..

[Mr Kram]

the payment is not important. obviously the purchasing would be more per month because you are building equity in the car. i'm just saying that $1300 would equate to a shitty MF and/or residual. i've had very compelling leases for AMG, M and P cars.

[LeoLopezDO]

amortization schedule on a 5 year loan @ 3% for a 75k car (assuming about 5k for tax, tag, title so total loan is 80k) = $1437.50/month

Now...assuming 58% residual, .00195 MF on a 36 month lease...(at 6% sales tax), I calculate (if i am correct) out a payment = $1172.44

that sounds a bit different from the other numbers mentioned but that's my calculation on the lease