topic Re: Audi Lease Approval Process? in Auto Loans

Audi Lease Approval Process?

charp150 — Sun, 21 Jan 2018 20:58:42 GMT

Hello-

I'm looking to lease a new Audi and in doing so will need to trade in current vehicle and roll some negative equity into the lease. Leasing is much more prudent for me given my lifestyle and financial situation (I recently entered a new line of work affording me the opportunity to deduct lease payments). My credit isn't super stellar; Auto FICO's sit in the mid 600s. Very strong auto payment history for 5+ years with no lates or other issues.

I applied with Audi Financial online, receieved a message that they needed more time, and the next day I received an email with an approval, which I was pretty surprised to see. It looks like they pulled EQ and EX. Not TU as I thought they would. I then contacted the local dealer I was referred to, explained the neg equity situation. They took a look at everything (I actually think they did) and they came back telling me they are 'confident' we can 'work something out', whatever that may mean.

A couple of questions I would appreciate some knowledge around:

-What exactly is one approved for in a lease situation? Is it a set monthly payment amount, cap cost, max MSRP?

-Audi is currently offering a loyalty reward of $1K for existing Audi owners, for which I would qualify. Are offers like these only available to top tier credit customers?

-Would I need to identify a new vehicle with an MSRP high enough to absorb the negative equity based on LTV allowances?

Thanks in advance for feedback on this...

Re: Audi Lease Approval Process?

DeeBee78 — Mon, 22 Jan 2018 20:00:55 GMT

@charp150 wrote:
Hello-

I'm looking to lease a new Audi and in doing so will need to trade in current vehicle and roll some negative equity into the lease. Leasing is much more prudent for me given my lifestyle and financial situation (I recently entered a new line of work affording me the opportunity to deduct lease payments). My credit isn't super stellar; Auto FICO's sit in the mid 600s. Very strong auto payment history for 5+ years with no lates or other issues.

I applied with Audi Financial online, receieved a message that they needed more time, and the next day I received an email with an approval, which I was pretty surprised to see. It looks like they pulled EQ and EX. Not TU as I thought they would. I then contacted the local dealer I was referred to, explained the neg equity situation. They took a look at everything (I actually think they did) and they came back telling me they are 'confident' we can 'work something out', whatever that may mean.

A couple of questions I would appreciate some knowledge around:
-What exactly is one approved for in a lease situation? Is it a set monthly payment amount, cap cost, max MSRP?
-Audi is currently offering a loyalty reward of $1K for existing Audi owners, for which I would qualify. Are offers like these only available to top tier credit customers?
-Would I need to identify a new vehicle with an MSRP high enough to absorb the negative equity based on LTV allowances?

Thanks in advance for feedback on this...

I was in the exact same situation as you three years ago, when I leased my Audi. I traded in a 22% APR loan on a Kia that I was $10,000 upside down on, for a 3 year Audi lease. You don't say how much negative equity you have, but I assume it is less than me. I was asked to put $5,250 cash down on the deal, and I did. I wasn't approved otherwise. Generally putting any money down on a lease is a bad idea, but I'd rather put $5K down on an Audi than be $10,000 upside down on a Kia.

My scores were all over the map, and I was tripled pulled with the following scores and models: 602 EQ Beacon 05, 635 EX Auto 03, 672 TU Auto 04, and I had four prior car loans paid and closed reporting.

Audi does not explicitly tell you what the money factor (aka, your APR) in a lease is, and you have to ask the finance manager as you're going through the paperwork. Ended up with a money factor of 5.9% APR. This website will tell you what your money factor and APR are if you have a few numbers.

What you have to put down will depend on your negative equity situation. It's not like purchasing, where you have to find a high MSRP vehicle to assist with the negative equity, they'll just raise your money factor so the monthly payments are higher. For me, I got to drive an Audi for only $200 more a month than my prior predatory car loan.

Re: Audi Lease Approval Process?

DeeBee78 — Mon, 22 Jan 2018 20:05:40 GMT

Oh, and the loyalty rebate is for everyone. They just add it to your "amount due at lease signing" as additional cash down.

Re: Audi Lease Approval Process?

charp150 — Mon, 22 Jan 2018 20:16:14 GMT

Thanks so much for this information. Very helpful. I’m sitting on about 5k in neg equity (according to a previous trade in offer). Because I’m not desperate for a car right now I’m pretty confident I’ll be able to walk out of the deal isn’t right. I’m willing to put 5k cash into the deal if needed but I don’t want to go above that. Do you mind if i ask what kind of vehicle you leased with Audi?

Re: Audi Lease Approval Process?

DeeBee78 — Mon, 22 Jan 2018 20:35:38 GMT

@charp150 wrote:
Thanks so much for this information. Very helpful. I’m sitting on about 5k in neg equity (according to a previous trade in offer). Because I’m not desperate for a car right now I’m pretty confident I’ll be able to walk out of the deal isn’t right. I’m willing to put 5k cash into the deal if needed but I don’t want to go above that. Do you mind if i ask what kind of vehicle you leased with Audi?

I leased a 2015 Q3 Presteige. I plan on buying it in a couple of months becuase it's got low mileage and no issues at all. Right now I'm debating whether or not to spend the $3,000 to CPO it, or get mechanical breakdown insurance through my lender next year when the factory warranty expires.

Re: Audi Lease Approval Process?

lexus829 — Mon, 22 Jan 2018 22:56:25 GMT

Congrats on the approval... now the final deal pretty much decide on how much discount you will get on the new car..

-What exactly is one approved for in a lease situation? Is it a set monthly payment amount, cap cost, max MSRP? - im sure DTI and previous car loan(monthly payment comparison)... 5 years without late is really good, i have a friend who got approved with just one year high interest loan after his BK

-Audi is currently offering a loyalty reward of $1K for existing Audi owners, for which I would qualify. Are offers like these only available to top tier credit customers? no loyalty is applied to all Audi owners

-Would I need to identify a new vehicle with an MSRP high enough to absorb the negative equity based on LTV allowances? its not the high msrp, but how much discount you would get... you can bury all that negative and just pay minimum drive off fee ive done it many times in the past With my experience Audi can go 110% of the value. If you can get 3-5k discount on the car i suggest just bury all the negative get another lease after the term, unless you really like the car then decide at the end find out the residual vs appraised value(if it make sense to keep it)

Re: Audi Lease Approval Process?

Anonymous — Tue, 23 Jan 2018 03:18:22 GMT

I just got an approval from Audi for A5 sportback. I went to Audi dealer planning to lease and realized there was not much difference between lease and purchase. Only 120 more per mth when I get 5 yrs financing, because I negotiated almost 11% off from their MSRP. I am pretty sure you did... but it might be better off to buy if you can negotiate good pricing.

Re: Audi Lease Approval Process?

DeeBee78 — Tue, 23 Jan 2018 06:41:35 GMT

@Anonymous wrote:
I just got an approval from Audi for A5 sportback. I went to Audi dealer planning to lease and realized there was not much difference between lease and purchase. Only 120 more per mth when I get 5 yrs financing, because I negotiated almost 11% off from their MSRP. I am pretty sure you did... but it might be better off to buy if you can negotiate good pricing.

Side note, I love the A5 sport back, and was so happy they brought it to the US for this generation. My parents have a 2016 S7 that I sometimes borrow, but it’s a huge car that barely fits in my side of the garage. The A5 is a good size for most people, and what I’ve been trying to convince my partner to buy.

Re: Audi Lease Approval Process?

Anonymous — Mon, 02 Apr 2018 23:46:22 GMT

Im in the same boat. My lease is coming up. I’m currntly driving an Audi A4 but I want to upgrade to the Q7 when my lease is up. My credit scores are 638 equifax, 634 trans and 643 Experian. However when I check the FICO scores version 5,4,2 my scores increase 20 points each... does anyone know what version they use? Or any experience on this? the Q7 i want is in the $65K. Income is $100K. Would I get approve?

Re: Audi Lease Approval Process?

DeeBee78 — Wed, 04 Apr 2018 18:48:27 GMT

@Anonymouswrote:
Im in the same boat. My lease is coming up. I’m currntly driving an Audi A4 but I want to upgrade to the Q7 when my lease is up. My credit scores are 638 equifax, 634 trans and 643 Experian. However when I check the FICO scores version 5,4,2 my scores increase 20 points each... does anyone know what version they use? Or any experience on this? the Q7 i want is in the $65K. Income is $100K. Would I get approve?

I've answered this before, but repeating makes the search function work better Here are the details of scoring models for Audi Financial Services, aka VW Credit:

EQ Beacon 05

EX Auto 03

TU Auto 04

Re: Audi Lease Approval Process?

Anonymous — Fri, 01 Jun 2018 12:20:23 GMT

I recently bought a 2016 RS7 and the cost to have the Dealer CPO it was only $1,100.00. That included a set of new Continental 21" tires which was well over $1,600 if I were to buy them, I think the dealer is trying to skin you. It cannot possibly cost more to certify a Q3 than an RS7 given that my car had an MSRP of $149K when purchased new.

Re: Audi Lease Approval Process?

Anonymous — Fri, 01 Jun 2018 12:21:52 GMT

@ DeeBee78 I recently bought a 2016 RS7 and the cost to have the Dealer CPO it was only $1,200.00. That included a set of new Continental 21" tires which was well over $1,600 if I were to buy them. I think the dealer is trying to skin you. It cannot possibly cost more to certify a Q3 than an RS7 given that my car had an MSRP of $149K when purchased new.

Re: Audi Lease Approval Process?

DeeBee78 — Thu, 16 Aug 2018 21:08:19 GMT

@Anonymous wrote:
@ @DeeBee78 I recently bought a 2016 RS7 and the cost to have the Dealer CPO it was only $1,200.00. That included a set of new Continental 21" tires which was well over $1,600 if I were to buy them. I think the dealer is trying to skin you. It cannot possibly cost more to certify a Q3 than an RS7 given that my car had an MSRP of $149K when purchased new.

Sorry to pop in and bring up an old thread, but I ended up returning the car and leasing a 2018 Audi S5 Cabriolet instead. This will hold me over until the etron is out in a few years.

Re: Audi Lease Approval Process?

Thomas_Thumb — Thu, 23 Aug 2018 12:14:35 GMT

@Anonymous wrote:
I recently bought a 2016 RS7 and the cost to have the Dealer CPO it was only $1,100.00. That included a set of new Continental 21" tires which was well over $1,600 if I were to buy them, I think the dealer is trying to skin you. It cannot possibly cost more to certify a Q3 than an RS7 given that my car had an MSRP of $149K when purchased new.

Audi dealers will often add a CPO as part of the used car purchase if the vehicle is eligible. I purchased a fully optioned 2018 Audi A6 3.0t prestige with 3,600 miles. Persuaded the dealer to include a CPO at no additional cost. I was told CPO cost for the car was $2200 (MSRP $69,100). I copy/pasted low mileage comps from Car Gurus into a word doc for reference - many listings had CPO included in the price. Final purchase price $54,900 after negotiation with CPO then added at N/C.

Purchasing a low mileage CPO Audi with extended 6 year, 100,000 mile warranty can save major $$$. It is a good alternative to a lease.

I really like the new S5 hatchback. Looks great, quite agile due to its smaller wheel base and size and good acceleration. Back in the day, I would have gone that route. The practicality of back seats with more head room and leg room were a factor for me. Very happy with the A6 3t purchase - awesome ride, good but, not great, driver.

If the urge for a sporty car with great handling arises, I'll look at the upcoming 2019 or 2020 Toyota Supra turbo. Unfortunately I acquired some moving violations and apparently lack sufficient self control. So for me it's look but, don't buy

P.S. for those that want a well appointed four door, hatchback, pocket rocket ... [RS5 sportback coming out later this year]

Re: Audi Lease Approval Process?

SoundoftheSuburbs — Mon, 27 May 2019 23:31:04 GMT

Does anyone have any information on Audi Financial Services' credit tiers?

Update: I do not have any information on VW Credit, Inc.'s (dba Audi Financial Services) credit tiers. I was approved for the base rate money factor on TransUnion FICO Auto scores of around 740-50.

Re: Audi Lease Approval Process?

SoundoftheSuburbs — Mon, 27 May 2019 23:16:38 GMT

My perception is that leasing with anything below 700 is bad. You really lack appropriate leverage when negotiating the money factor. Leasing with anything beyond the base money factor is asinine. Negotiate that markup out! Unfortunately, you need to qualify for the base rate.

Re: Audi Lease Approval Process?

Anonymous — Tue, 18 Jun 2019 00:21:41 GMT

We've always financed our cars, so I'm trying to decide if leasing is in my best interest or flat out financing. Does anyone know if Audi still uses the scores posted in 2018?

Re: Audi Lease Approval Process?

Gladius — Wed, 19 Jun 2019 17:46:39 GMT

Why would they use scores that over 6 months old? They should pull current scores just like any other dealership.

Re: Audi Lease Approval Process?

Anonymous — Wed, 19 Jun 2019 19:20:00 GMT

@Gladius wrote:
Why would they use scores that over 6 months old? They should pull current scores just like any other dealership.

I think they were referring to the Fico models that someone posted on the first page of the thread - not their actual scores from 6+ months ago

Re: Audi Lease Approval Process?

Anonymous — Fri, 03 Apr 2020 20:45:53 GMT

I got approved 1 year ago with a 629 EXP auto fico score. For anyone who is reading this post: AUDI will look at two key factors: past auto payment history and time on the job. Credit score is MINOR factor. I had 3 consecutive years of on time car payment + 20 yrs at the same job.

2018 audi s6.