topic Re: Audi financial lease approval process in Auto Loans

Audi financial lease approval process

itspaul — Sat, 30 Oct 2021 13:34:58 GMT

I'm looking to lease an Audi RS E-Tron GT that will arrive in May 2022

I currently have a Jaguar with a $900 payment, $30k total shows as financed with Chase (Jaguars captive).

The new lease would be $90k financed for 36months, $2600 monthly payments which is a 3x my current high credit

How does Audi financial look at this payment shock?

I assume they will require a huge down payment to put me at 2x my high limit that would be $60k financed, or $30 upfront. I know thats not the optimal thing to do for a lease

My TU is 819, Exp and Eq will be over 780 by then

Re: Audi financial lease approval process

Shooting-For-800 — Sat, 30 Oct 2021 14:51:17 GMT

$2600 for a lease for $90k car seems insane to me regardless of income.

I would check out some other $90k car leases for reference points.

Why not just buy it using a CU for 72 or 84 months?

You could always sell it before the end of the loan.

Your payment would be less than half of $2600 and have no lease requirements.

Re: Audi financial lease approval process

itspaul — Sat, 30 Oct 2021 14:54:54 GMT

It's a $168k car, $90k financed, 36/12k lease.

There are no luxury performance EVs other than the Taycan which would be significantly more.

I would only lease an EV

Re: Audi financial lease approval process

Msafiri732 — Sat, 30 Oct 2021 15:33:48 GMT

I've bought three Audi vehicles through AF and they don't really care about the amount of your past car payment so long as it was paid on time and in full. Your credit score and DTI is what will make their decision.

Re: Audi financial lease approval process

itspaul — Sat, 30 Oct 2021 15:42:59 GMT

I think DTI is the key more than anything.

Any idea what DTI % they are looking for?

@Msafiri732 wrote:
I've bought three Audi vehicles through AF and they don't really care about the amount of your past car payment so long as it was paid on time and in full. Your credit score and DTI is what will make their decision.

Re: Audi financial lease approval process

Msafiri732 — Sat, 30 Oct 2021 15:57:46 GMT

Rule of thumb is 30% but I've seen people get approved at 35%. If you can walk in there with anything under 30%, you're golden.

By the way, good luck on the E-Tron GT, that's an amazing car, I'm literally turning green because the lady that runs our household would never allow it. So if we meet at a parking lot someday, allow me to take a few pics standing next to it!

Re: Audi financial lease approval process

itspaul — Sat, 30 Oct 2021 16:26:11 GMT

I appreciate that. If all goes well and you're in California, I would love for you to drive it.

Its an incredible machine, EV propulsion aside. I prefer the Taycan, but it would be considerably more than I can afford

Re: Audi financial lease approval process

Creditplz — Sat, 30 Oct 2021 18:00:49 GMT

Audi FS will (I'm assuming) require a bigger dp but regardless will approve..

also I'm not sure how likely the 2600 payment is.. if it's slated to come in mid 2022 MF & RV could be altered as they were when I was waiting on a 2016 Audi A8.

also I've seen some reports on leasehackr where people are getting EQ5 for $300/mo for a 75k SUV so I'm not sure what's going on with Audi EV market but I don't think it's off to sprint yet..

I know it's a new car but regardless try getting something off MSRP as Audi don't usually sell that well from my understanding.

Re: Audi financial lease approval process

itspaul — Sat, 30 Oct 2021 18:15:03 GMT

There is a big caveat for this deal and it's based on the key points you made.

For October 2021 (changes in 2 days, changes every month. I have a comprehensive list of monthly changes) the MF is .00184, RV is 55% for 36/12k

Every point in RV is equal to $50 a month.

I'm targeting at least 6% off by then.

Problem is I see the pipeline of dealer orders and from now until the first half of 2022 and it's very low. Most dealers will get 1-3 cars max in the first half of 2022

Maybe there will be more allocations known by November 1st.

Another major headwind is the EV tax credits that will most likely disappear by then. That's a swing of $7500 and a huge chunk of payments.

Can you explain what happened to your A8?

Re: Audi financial lease approval process

Shooting-For-800 — Sat, 30 Oct 2021 19:55:31 GMT

@itspaul wrote:
It's a $168k car, $90k financed, 36/12k lease.
There are no luxury performance EVs other than the Taycan which would be significantly more.
I would only lease an EV

Why would you only lease an EV?

You can sell it in 2 years, 3 years, 4 years, 5 years, whenever.

"8 year/100K miles (whichever occurs first) high-voltage battery limited warranty coverage on MY21 Audi e-tron vehicles."

"4 years or 50,000 miles, whichever occurs first on all new vechicles"

"Four years or 50,000 miles, whichever occurs first on all new vechicles"

"12-year limited warranty against corrosion perforation on all new vechicles"

"Audi 24-hour roadside assistance for four years on all new vechicles"

Enjoy you new car!

Re: Audi financial lease approval process

itspaul — Sat, 30 Oct 2021 20:03:26 GMT

The fine print of the warranty is where they get you. EVs generally will allow for 80% capacity before battery replacement. So 20% loss is acceptable.

This and the Taycan also have relatively high service costs. I wouldn't want to spend a penny replacing carbon ceramic brakes on an EV after 50k (or so) Miles.

This is also a problem in the secondary market. Not much data for EVs but pre pandemic, it wasn't favorable, hence the garbage residuals.

Re: Audi financial lease approval process

disdreamin — Sun, 31 Oct 2021 19:19:42 GMT

@itspaul wrote:
The fine print of the warranty is where they get you. EVs generally will allow for 80% capacity before battery replacement. So 20% loss is acceptable.
This and the Taycan also have relatively high service costs. I wouldn't want to spend a penny replacing carbon ceramic brakes on an EV after 50k (or so) Miles.
This is also a problem in the secondary market. Not much data for EVs but pre pandemic, it wasn't favorable, hence the garbage residuals.

Car looks fun, having jealousy issues here. I would love an EV at some point (although it would have to be a _much_ more modestly priced one, sadly), but a used one would be a hard no and a first-model-year vehicle would definitely be a lease. As much as I personally couldn't contemplate this lease because it's beyond my means, I have to agree that leasing would absolutely be the best choice here. Honestly, I started reading the thread thinking "that is a ridiculous lease" and then did a bit of poking around and realized yep, best option, good choice, you've clearly done your homework. Please come brag up the new wheels when the deed is done.

Re: Audi financial lease approval process

itspaul — Sun, 31 Oct 2021 19:29:23 GMT

The terms are not ideal, high MF, 55% RV isn't bad compared to other EVs.

To me it's about $50k over priced, There aren't many EVs out there to chose from. I have a Jaguar I-Pace now, though I hate SUV/CUVs.

If a Rivian and a 9000lbs Hummer EV does 0-60mph in 3sec, any EV should be at least as quick.

We shall see if there is a deal as it gets closer to the delivery date.

@disdreamin wrote:
@itspaul wrote:
The fine print of the warranty is where they get you. EVs generally will allow for 80% capacity before battery replacement. So 20% loss is acceptable.
This and the Taycan also have relatively high service costs. I wouldn't want to spend a penny replacing carbon ceramic brakes on an EV after 50k (or so) Miles.
This is also a problem in the secondary market. Not much data for EVs but pre pandemic, it wasn't favorable, hence the garbage residuals.
Car looks fun, having jealousy issues here. I would love an EV at some point (although it would have to be a _much_ more modestly priced one, sadly), but a used one would be a hard no and a first-model-year vehicle would definitely be a lease. As much as I personally couldn't contemplate this lease because it's beyond my means, I have to agree that leasing would absolutely be the best choice here. Honestly, I started reading the thread thinking "that is a ridiculous lease" and then did a bit of poking around and realized yep, best option, good choice, you've clearly done your homework. Please come brag up the new wheels when the deed is done.

Re: Audi financial lease approval process

disdreamin — Sun, 31 Oct 2021 19:36:35 GMT

@itspaul wrote:
The terms are not ideal, high MF, 55% RV isn't bad compared to other EVs.

To me it's about $50k over priced, There aren't many EVs out there to chose from. I have a Jaguar I-Pace now, though I hate SUV/CUVs.
If a Rivian and a 9000lbs Hummer EV does 0-60mph in 3sec, any EV should be at least as quick.
We shall see if there is a deal as it gets closer to the delivery date.

Not ideal terms or pricing, but if it's the vehicle you want and you're willing to pay for it, the way you are going about it makes the most sense. Me, I'll be driving my many-years-old-Mazda quite a while longer. But perhaps someday, once I have a solar array than can handle the new house I'm working on designing plus charging needs for a EV, I'll pull the trigger on one. It'll be a while though, and it won't be my only vehicle when I finally do it, since it wouldn't be practical for some of the travel I intend to do.

Re: Audi financial lease approval process

itspaul — Mon, 18 Jul 2022 01:26:18 GMT

Following up on this thread.

I finally got the car today after almost 10 months, MF doubling and battling AFS.
VW is getting tighter with approvals. My previous lease I financed $40k for a Jaguar I-Pace, this Audi is $102k financed.

They used my TU 796 score, putting $28k down plus drives, it was still denied. After showing I pay for a mortgage, they approved it.

Score and income matter, but depth of credit is a huge factor

PS AFS only allows dealers to markup MF .40bps from 120bps 5 months ago.

Re: Audi financial lease approval process

Gladius — Mon, 18 Jul 2022 12:26:35 GMT

@itspaul wrote:
Following up on this thread.

I finally got the car today after almost 10 months, MF doubling and battling AFS.
VW is getting tighter with approvals. My previous lease I financed $40k for a Jaguar I-Pace, this Audi is $102k financed.

They used my TU 796 score, putting $28k down plus drives, it was still denied. After showing I pay for a mortgage, they approved it.
Score and income matter, but depth of credit is a huge factor

PS AFS only allows dealers to markup MF .40bps from 120bps 5 months ago.

You have a lot of accronyms in your posts. What does MF and bps mean?

Re: Audi financial lease approval process

itspaul — Mon, 18 Jul 2022 14:59:19 GMT

My Apologies because they throw me off too

MF is money factor on a lease or the interest rate. BPS is basis points

the Money factor from Audi for July is .00367 or 8.8%. 40bps markup from dealer would be .00407 or 9.7%

Before the reduction from Audi Financial with the 120bps markup up cap it would have been .00487 or 11.6%

This makes a huge difference in monthly payment

Re: Audi financial lease approval process

RX9 — Mon, 16 Jan 2023 01:39:23 GMT

Wouldn't they see your mortgage when pulling your credit report from TU or did they only look at the score? When you showed them your mortgage was it statements? I ask because your situation sounds very similar to mine and I was searching the forum looking for details on Audi Financial criteria for approval. How did they verify back-end DTI?

Thanks

Re: Audi financial lease approval process

itspaul — Mon, 16 Jan 2023 03:45:05 GMT

The loan isn't under my name by I pay the mortgage. The payments show from my bank account so I have them statements and it got done.

They didn't care how much cash I have in my account, just payment history being the most important

@RX9 wrote:
Wouldn't they see your mortgage when pulling your credit report from TU or did they only look at the score? When you showed them your mortgage was it statements? I ask because your situation sounds very similar to mine and I was searching the forum looking for details on Audi Financial criteria for approval. How did they verify back-end DTI?

Thanks