Premier Purchase?

[markcincinnati]

Normally we lease, 36 months MAXIMUM, did one at 12 months, a couple at 30 and one or two at 24 months. We like the 36 month lease a lot because you typically can "get out" w/o any pain$ antime after month 30 or 31 (sometimes earlier). A shorter lease often means you lease a 1999 A6 and then a 2001 and the differences are subtle, with a 36 month lease it is often possible to actually move up to a new or replacement platform -- which, thus far, has turned out to be a good thing. The Premier Purchase "reads" like the best of all worlds. Here is the deal: 50,000 miles would be driven in about 36 months (16+K miles annually, so we go with 15,000 for lease purposes). No money down, life to date. Often Audi picks up the first month's payment and there is no sec dep. What and why would we go with the Premier Purchase -- what does it afford you and what are the risks based on the 16,666 mpy assumption? In the "old days" there used to be a thing called a closed end or an open end lease. The open end lease actually put the burden of depreciation on the buyer -- which fundamentally made it unattractive. Is this the deal on the Premier Purchase, too? Any "education" and comment about this financial product would be appreciated.

[AlexTTQ]

This is something quite big in Texas.
The nice thing about it is that if you do so, the car will be titled under your name, which means that at the end of the term you love the car so much you want to buy it, you won't pay sales tax again.
There is no disposition fee at the end and no penalties for pre payment.
It is structured like a lease, but is essentially a buy.
You only pay for the portion of the car that you actually use and you have a Balloon payment at the end. You can decide to purchase that car at the end for that balloon amount (you can refinance it if you want) or you just returned the keys of the car if you do not wish to do so.
The balloon amount at the end is what Audi thinks the car will be worth at that time (up to 42 months). If the car is worth more, great, you get a check for the difference.
If the car is worth less, well Audi will take care of it.
The downside of it?
Well there is no Gap insurance with the Premier Purchase (but you can buy it) as it comes with the Lease.
Other than that, except if you have Tax Credits while doing a lease, your payments should be lower on the Premier Purchase than on a regular lease. This of course would be more noticeable on an A4 than an A8.

Hope this helps.

[Reggie]