Audi Lease Approval Process?

[charp150]

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...

[DeeBee78]

---

@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. 

[DeeBee78]

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

[charp150]

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?

[DeeBee78]

---

@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.

[lexus829]

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)

[Anonymous]

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.  

[DeeBee78]

---

@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. 

[Anonymous]

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?

[DeeBee78]

---

@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