RS models financing?

[katonyc]

Hi all, has anyone heard that for RS models, you can only go thru audi financing? I was told someone got an RS model car and the dealer told him he can only get financing thru Audi Finance and can’t go to a bank of his choice.and the interest rate is ridiculous. Does this sound right? It sounds crazy to me. I’m waiting for a 2023 RS 5 to arrive in the US and I just heard this for the first time. It sounds ludicrous but just wanted to make sure I’m not crazy. Thanks.

[Burrcold]

Sounds completely false, but just ask your dealer. Technically they can ask for anything they want (only finance through Audi FS, can only be leased, etc). If they are playing games like that, walk away.

[Zombie5150]

Maybe it has something to do with the amount financed? I have no idea. I used Audi Financing on my SQ5 because they had a pretty low rate at the time (1.49). When I bought my RS5 I had originally planned on using AF again. My dealer got me a much lower rate through a local credit union so I went with that. Now I put quite a bit down and didn’t finance that much so maybe that had something to do with it. I’ve also got a very high Fico score. There’s probably several factors on why the dealership “might” be doing that. I really have no idea if that’s true, just throwing it out there.

[Ed99]

Usually you have 3 options:

1) Lease the car
2) Finance the car from Audi
3) Buy the car out with your own money or get financing somewhere else

You probably better off getting a lower financing rate with your bank vs Audi unless sometimes they have financing promo's.

Rates are high right now and will go up some more.

What rate did you get for financing?

[Diesel S5]

No dealer can make you do your financing with them... You can go to your own bank and get a check cut for the car, and finance it through them...

[JohnEnglish]

Yeah you can finance anywhere you want. When I bought my RS5, a couple of years ago, I went through Audi as the banks and credit unions all told me they couldn't come close to manufacturer finance rates. They best rate I got from a financial institution was 2.75% I think. After promos and loyalty incentives, I got financing through Audi for just under 1%.

[Uncle Buck]

I've always used AoA Finance as given our credit score and Audi incentives, I've paid at most 1.99% (going back to 2001). Current RS5 AoA rate is 0.0%.

[Burrcold]

I've always used AoA Finance as given our credit score and Audi incentives, I've paid at most 1.99% (going back to 2001). Current RS5 AoA rate is 0.0%.

0% financing in these times?? That's crazy!

[Ed99]

0% financing in these times?? That's crazy!

Those days are long gone and don't think it will happen again anytime soon!!!

[Burrcold]

Those days are long gone and don't think it will happen again anytime soon!!!

He just said that was the current rate (maybe a mistake but look above).

[Uncle Buck]

He just said that was the current rate (maybe a mistake but look above).

It's the rate on my 2019 RS5 that I bought in August, 2020. Sorry for any confusion.

[itr0045]

No dealership can force their lender on you. Oftentimes the dealership is making a fee for the loan but can even add a percentage on to your overall rate. Get a credit union loan unless you are military.

[Burrcold]

No dealership can force their lender on you. Oftentimes the dealership is making a fee for the loan but can even add a percentage on to your overall rate. Get a credit union loan unless you are military.

You're right, but they can decide to not sell you the car unless you opt to finance through them. Not a good business practice, but they can do it.

[Ed99]

You're right, but they can decide to not sell you the car unless you opt to finance through them. Not a good business practice, but they can do it.

If you go with Audi finance they are definitely making more money off you from the high interest rates, hence can maybe ask to lower the price a tad bit more.

[Burrcold]

If you go with Audi finance they are definitely making more money off you from the high interest rates, hence can maybe ask to lower the price a tad bit more.

Maybe, although by the time you are discussing how it's going to be paid for/financed more than likely you have already agreed on a sale price (not like you can't continue negotiations though until it's signed, sealed, and delivered).

[Ed99]

Maybe, although by the time you are discussing how it's going to be paid for/financed more than likely you have already agreed on a sale price (not like you can't continue negotiations though until it's signed, sealed, and delivered).

I always ask after agreeing with the price and I ask them would I get a price break if I finance with Audi and usually they said of course...and I got an extra $1500 off which is decent I think.

[itr0045]

You're right, but they can decide to not sell you the car unless you opt to finance through them. Not a good business practice, but they can do it.

Yes, and as you hinted, the dealership would risk losing a sale. I suppose the dealership could just choose to not sell you the car just because they didnt like you?!? :)

[katonyc]

Thanks guys. So I guess it depends on the dealership. I asked my dealership and they said thats not true and I financed w my own bank. The guy who got his rs must have went to a dealership where they practice that scheme regularly. Unreal man, unreal.

[StevenChenowet]

Thanks for making my mind clear.

[Dan99]

Hi all, has anyone heard that for RS models, you can only go thru audi financing? I was told someone got an RS model car and the dealer told him he can only get financing thru Audi Finance and can’t go to a bank of his choice.and the interest rate is ridiculous. Does this sound right? It sounds crazy to me. I’m waiting for a 2023 RS 5 to arrive in the US and I just heard this for the first time. It sounds ludicrous but just wanted to make sure I’m not crazy. Thanks.

Getting financing from your bank is essentially the same as walking into the dealership with cash, and I assume they would not turn down a cash purchase. They just want the additional revenue from the financing through them.

[Lensch09]

When I bought mine last year, I put $40k down and paid taxes out of pocket.

Financed the rest through Chase at 1.9%. You'll get nowhere near those rates right now - To combat inflation, interest rates have risen significantly in the past 12 months (although they are starting to plateau/decrease).

Generally, the AoA/AF special rates do not apply to R/RS models. They know you can afford the big baller spec, so they don't necessarily cut you any breaks.

If the dealer is requiring your friend to finance through AF, walk. That sounds sketchy as hell.

-DL

[Lensch09]

Also, to substantiate the increase in rates - With excellent/top-tier credit, my same exact Chase loan of 1.9% would be 7.08% on a 48Mo loan (I just checked).

Shit timing to finance a car right now.

-DL

[Jprieur]

Things have definitely changed over the past few years. I picked up my '19 RS5 new at 0% (Audi FS buy rate at the time) and about 22% off MSRP about 3 years ago. Been an Audi customer for over a decade and that is the first and only time I have ever seen an Audi RS model with a special rate from Audi Financial, let alone one below the prime rate. There were even some rebates on the RS5 at the time, also a rarity.

Some banks do have a limit on what they will lend for a specific model, and some banks wont capitalize options beyond a certain amount, etc; so if you weren't putting any money down you could run into some issues with banks if you are over that lending limit. I think the dealer was really just stretching the truth on a unique situation and widely applying it. You should be fine to shop around and get the best rate.

And dealers don't necessarily make more money off a deal financed through Audi all else being equal. The spread between the buy rate (what the dealer pays) and your financed deal rate (what you pay) is dealer profit; and they can do this for local banks as much as they can with Audi FS. You best bet is to try and find out what the Audi FS buy rate is and find out how that compares to what you can get. Also let the dealer leverage their relationships with their lenders as well. I had a large dealer chain (multi state) get a major US bank to come down 2% and beat every bank I could find based on the fact that they are buying hundreds of loans every day through their massive finance department with this bank.

Good luck!