# Just test drove an 2016 S3. I loved it...but (leasing question)



## SimpsonTide985 (May 31, 2013)

So, I've test driven nearly 10 vehicles in the last two weeks so far and I think the S3 is my favorite; however, it's also the most expensive vehicle I've tested so far. This is the S3 Premium Plus I drove:






























*Now, I have a question.*

The MSRP is $49,625 (residual was around 53% and MF was 0.00006). The dealer took $5000 off the top and an extra $500 for Conquest, resulting in the dealer selling price of $44,125 including Audi Care.

I countered with $42,000 and they rejected it. Was I asking for too much? I know it's still early in the month. 

Maybe I should wait until later in the month and maybe they'll come down some more...?


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## P-40 (Mar 9, 2013)

Sorry, you're asking us if you asking for 16% off a brand new s3 is too much? Yes. Of course it is. 

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## SimpsonTide985 (May 31, 2013)

P-40 said:


> Sorry, you're asking us if you asking for 16% off a brand new s3 is too much? Yes. Of course it is.


Listen, I get that. Maybe now I feel like an ******* but I wasn't 100% sure beforehand, which is why I was curious. It may seem odd to you since you know more about this car than I do, but that's precisely why I asked.

I wanted to do a simple sanity check because while I wasn't trying to lowball them, I know that sometimes a dealer's asking price is a discount manipulated to compensate for certain subsidies. Since I don't know as much about the S3's lease deals historically, I was just looking for some helpful advice on if the asking price was typical or not is all. I really didn't know.


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## CadiGTi (Mar 1, 2007)

Nothing wrong with your offer. The dealer will counter you back. VW Porsche and Audi are under intense pressure to sell every unit they can due to diesel gate toppled with a weak luxury car market. End of model year and there are some updates to the 2017 model so You are in the drivers seat, not Audi. 

I was in Houston 3 weeks ago and visited Audi Central Houston. A very large dealer (7 story facility). They had 3 2016 S3's sitting in their parking deck. All of them had 2015 build dates. 

You may want to contact other large Audi dealers too.


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## Torkey (Feb 8, 2006)

I dont think your offer was too far off. 2 days ago I purchased a mythos black 2016 prestige MSRP'd at 54k and ended up getting it for $46250. I didnt want black but the deal seemed too good to pass up. That or find another dealer willing to deal bc there are tons of them out there


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## SimpsonTide985 (May 31, 2013)

Yeah, that's what I'm doing in the meantime right now.

I've found a few other dealers with 2016 Premium Plus's with similar configurations that I'm asking for offers on.

We'll see what happens.


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## drive90 (Aug 16, 2007)

SimpsonTide985 said:


> Maybe I should wait until later in the month and maybe they'll come down some more...?





P-40 said:


> Sorry, you're asking us if you asking for 16% off a brand new s3 is too much? Yes. Of course it is.
> 
> Sent from my SM-G930W8 using Tapatalk


I got 20% off MSRP on a 2015 after the 2016 models had arrived. Be firm and only make a deal for what you are going to be HAPPY to pay. If it means getting 16% off then so be it.


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## Travis Grundke (May 26, 1999)

In situations like this you want to go check Edmunds.com for the invoice, plus any additional incentives. Their pricing forums usually are a good source for "what other people are paying" and to get things like residuals and money factors. 

Those resources will put you in the ballpark and give you the numbers you need to go crunch lease pricing. 

The larger dealers will be more likely to move metal aggressively so they qualify for monthly and quarterly bonuses.

Remember: A "good deal" is whatever makes you happy.


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## SimpsonTide985 (May 31, 2013)

Travis Grundke said:


> In situations like this you want to go check Edmunds.com for the invoice, plus any additional incentives. Their pricing forums usually are a good source for "what other people are paying" and to get things like residuals and money factors.
> 
> Those resources will put you in the ballpark and give you the numbers you need to go crunch lease pricing.
> 
> ...


It was my research at Edmunds as to how I came up with the $42k offer initially. They now advise me that either I can wait a few weeks and see if they'll be able to make a deal at the end of the month. If I'm in a hurry, wait a few days and try to negotiate a new offer in the low $43k range. I'd be comfortable at $43,175.


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## wasim12 (Aug 6, 2011)

Not sure if it helps but for my nearly identical S3 I payed $500 down, $419 month/36mo. 7500mpy. This was back in June with a 57% residual


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## SimpsonTide985 (May 31, 2013)

wasim12 said:


> Not sure if it helps but for my nearly identical S3 I payed $500 down, $419 month/36mo. 7500mpy. This was back in June with a 57% residual


Wow, that's a really low mileage rate. I'm assuming it wasn't your daily driver or you had intentions of buying it at the end of your lease? Did you go that route for a really low monthly rate? I don't drive a ton either. So far I'm averaging 8600 miles/year, which is why I think 10k should be safe.


Only $500 down? Hmmm. I'm also thinking of pulling back a bit on my down payment. $3200 down seems a bit high in retrospect, but I just arbitrarily threw a number out there just to dip my toe in the water.


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## btufail (Feb 26, 2016)

SimpsonTide985 said:


> Wow, that's a really low mileage rate. I'm assuming it wasn't your daily driver or you had intentions of buying it at the end of your lease? Did you go that route for a really low monthly rate? I don't drive a ton either. So far I'm averaging 8600 miles/year, which is why I think 10k should be safe.
> 
> 
> Only $500 down? Hmmm. I'm also thinking of pulling back a bit on my down payment. $3200 down seems a bit high in retrospect, but I just arbitrarily threw a number out there just to dip my toe in the water.


*
Wow. I found my Red 2016 S3 in Michigan for $47k(19" double spoke rims tech package).Put $3k down and $539 payment 12K miles/yr.*


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## wasim12 (Aug 6, 2011)

SimpsonTide985 said:


> Wow, that's a really low mileage rate. I'm assuming it wasn't your daily driver or you had intentions of buying it at the end of your lease? Did you go that route for a really low monthly rate? I don't drive a ton either. So far I'm averaging 8600 miles/year, which is why I think 10k should be safe.
> 
> 
> Only $500 down? Hmmm. I'm also thinking of pulling back a bit on my down payment. $3200 down seems a bit high in retrospect, but I just arbitrarily threw a number out there just to dip my toe in the water.





btufail said:


> *
> Wow. I found my Red 2016 S3 in Michigan for $47k(19" double spoke rims tech package).Put $3k down and $539 payment 12K miles/yr.*


TBH the mileage is one of the most overlooked things when pricing a lease IMO. It can really lower the payments if you don't drive that much. 

I don't do too much long distance driving anyways. But with the residual % they gave me and the way these cars tend to depreciate slowly, I'm anticipating there will be some equity in it towards the end. Even if I'm close to my mileage limit, my plan is to end the lease early, skip some dealer fees and inspection, and start a new one. That's all theory though. We'll see what happens.. :laugh:

EDIT: Also, credit plays a big role in how much the dealer is willing to sway


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## SimpsonTide985 (May 31, 2013)

wasim12 said:


> TBH the mileage is one of the most overlooked things when pricing a lease IMO. It can really lower the payments if you don't drive that much.
> 
> I don't do too much long distance driving anyways. But with the residual % they gave me and the way these cars tend to depreciate slowly, I'm anticipating there will be some equity in it towards the end. Even if I'm close to my mileage limit, my plan is to end the lease early, skip some dealer fees and inspection, and start a new one. That's all theory though. We'll see what happens.. :laugh:
> 
> EDIT: Also, credit plays a big role in how much the dealer is willing to sway


Yeah, you make a good point. I almost always get out of my leases earlier.

Speaking of which, in doing my car research, I discovered that my employer actually gives some additional incentive money toward my lease of any BMW or Mercedes-Benz vehicles, which I didn't know until I contacted the dealers directly.

With that said, is there a way for me to tell if my employer gives additional incentive money toward Audi as well? I would have to assume so since there are a lot of co-workers that drive Audis here. Is there a list?


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## wasim12 (Aug 6, 2011)

Not sure about that. Maybe try talking to someone from your company who drives one and see what they know


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## SimpsonTide985 (May 31, 2013)

wasim12 said:


> Not sure about that. Maybe try talking to someone from your company who drives one and see what they know


Ok, I got in contact with one dealer about this.

Basically, the only time this incentive would be worth it is if this was a brand new vehicle and the dealer is probably selling at MSRP. I would then get 6% off MSRP right off the top. Seeing as the dealer already took 11% off for me, I can't see them honoring any other incentive on top of this necessarily.


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## CadiGTi (Mar 1, 2007)

*2016 S3 Lease Deal*

Audi in Arlington Virginia


2016 Premium Plus S3 MSRP $52,165
$399 / 42mos lease / 7.5k miles annually / $1500 down 

(dealer disclosed prior lot damage) If someone is just going to rent this car for 3.5 years vs owing it, probably a decent deal. 


https://www.audiofarlington.com/inv...leNumVal=&vehicleNumTypeXS=S&vehicleNumValXS=


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## SimpsonTide985 (May 31, 2013)

I haven't been able to find any dealers nearby with a similarly configured vehicle that's able to beat my local dealer's price of $44,125 with Audi Care. I'm feeling an itch to bite the bullet on this one a bit.


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## wasim12 (Aug 6, 2011)

http://forums.edmunds.com/discussion/34914/audi/s3/2016-audi-s3-lease-questions/p9

This thread is full of ppl getting quotes for S3s. Should give you an idea of where you stand, I know it helped me.


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## SimpsonTide985 (May 31, 2013)

SimpsonTide985 said:


> I haven't been
> 
> 
> SimpsonTide985 said:
> ...


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## SimpsonTide985 (May 31, 2013)

It was painful, but I finally got the deal that I wanted on my new S3! 

I have officially landed! WHOOOOOOO


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## SimpsonTide985 (May 31, 2013)

Hey guys, I'm back!

The lease on my S3 runs out in September and I'm CONSIDERING purchasing my leased vehicle due to the fact that I estimate that I'll be at 51,000 miles by then where I was contracted only for 22,500. (I've changed my place of residence, so my miles have skyrocketed).


Residual Amount is $28,260.60. ($44,125 was the final price on the lease in September 2016)


Let's say I want to do a 5 yr/60 month finance. $3000 down.

My only question is, what's the strategy in negotiating the purchase price and getting the best interest rates on the car? I've been told not to go directly to the dealer, but more detail and instruction would be greatly appreciated if anyone has experience with this.


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## RocknRolla (Jul 19, 2006)

SimpsonTide985 said:


> Hey guys, I'm back!
> 
> The lease on my S3 runs out in September and I'm CONSIDERING purchasing my leased vehicle due to the fact that I estimate that I'll be at 51,000 miles by then where I was contracted only for 22,500. (I've changed my place of residence, so my miles have skyrocketed).
> 
> ...


I’m almost in the exact same situation. Except I’m only at 28k miles and my lease ends in one year. I’ve thought about going to a credit union for financing vs the dealer. I was also under the impression that you can negotiate the lease buyout price?


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## TreizeRXH (Jul 11, 2016)

SimpsonTide985 said:


> Hey guys, I'm back!
> 
> The lease on my S3 runs out in September and I'm CONSIDERING purchasing my leased vehicle due to the fact that I estimate that I'll be at 51,000 miles by then where I was contracted only for 22,500. (I've changed my place of residence, so my miles have skyrocketed).
> 
> ...


Sorry bud but they kinda have ya by the balls here: you're over mileage and it's either buy at that price or pay the over mileage penalty and walk away. They won't negotiate at the dealership, your best bet is to call Audi credit directly and see what they can do about the residual. 

DO NOT TELL THEM YOUR OVER MILES and also don't do this until like a month before you are to turn the car in. Don't tip your hand off to the lender or they will always take advantage. The average cost of used S3 is around$30k and they'll be happy to have you walk and sell it to someone else for more. 


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## germanrox (Mar 30, 2001)

Yeah, you don't get to negotiate the residual value. That's a fixed price. So you can drop it and pay 0.25 cents per mile plus $350 disposition, or you buy it for the residual plus TTL. Good luck!


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## BuCi1eR (Apr 15, 2004)

SimpsonTide985 said:


> Hey guys, I'm back!
> 
> The lease on my S3 runs out in September and I'm CONSIDERING purchasing my leased vehicle due to the fact that I estimate that I'll be at 51,000 miles by then where I was contracted only for 22,500. (I've changed my place of residence, so my miles have skyrocketed).
> 
> ...


I work in the automotive industry, not an an Audi dealership but have dealt with several different brands in my 15 years in the industry. You’re in a tough situation. So I’ll do my best to offer you what I think will put you in the best position down the line. Before I start the car sales rule of thumb is for every $5000 you finance at an average interest rate over 5 years it will equal about $100 a month in payment. 

Now, what I did when I was in basically the same exact situation after a divorce and moving and all that kind of nonsense is this. Go to your local Audi dealer of choice and have them appraise your vehicle as a trade. You may be able to trade out of it for less than it would cost you to turn it in. So for example if your payoff/purchase option is 28k and they appraise it for 25k you’re only out 3 grand. Conversely, it’s gonna cost about 7 grand if you turn it in and pay the mileage penalty. If you DM me your vin and miles I can give you an idea of what that car would be worth to a dealer(since I work at one.) Once you figure out which way costs less money, I would lease another one with the 3 grand down and roll that amount into a new lease. MAKE SURE that you build your new lease with the miles that you’ll be driving this time. The rule of thumb on a lease is for every $1000 it’s about $30 a month in your payment for a 36mth lease. Also, you don’t have to wait until your lease is over to trade out of it, you’re already upside down in the car and you know that... start shopping now and find a deal. The reason I think this is the best idea is because you’ll be out of auto debt in 3 years and be able to walk in to a dealership with a clean slate and get whatever it is you want. 

As far as buying out your lease? I wouldn’t do that either. You’re going to pay more money for that car than it’s worth and continue to depreciate it until you decide you don’t want it anymore. At that point you will probably STILL be upside down in your auto loan and be walking into a similar situation you’re in right now. Also, you don’t have to finance the purchase option on your Audi with AFS. You can use any bank of your choosing. You will have to still go to the dealership because there’s some title work will need to be done. Again, if you’d like, DM me and I’ll get you a value on your car for you’d like. I’d be more than glad to help one of the brethren here in a situation of need.


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