mmccall

I've seen this come up in several threads in this forum so I thought this might help.

Here's how the PPP really works.

You have a loan with a balloon due at the end, in 8 years I have never seen Audi buy
down a PPP. The balloon is calculated by useing the exact same residual values as the
regular lease. In other words you will have the exact same buy out at the end of the
lease as you would on the PPP (with the exception of sales tax). You may or may not
have a security deposit on the lease (I never use them on Audi leases) and right now
the rate difference between the factory subvened leases and the PPP is, as usual,
huge. On the PPP you do have all the same responsibilities as on the lease (you have to
pay for over mileage and damage, ect.)

I have had alot of people ask about PPP and have never had one use it, the leases
always come out far better, because the factory buys them down.

The main reason they have PPP is that there are some people that are so afraid to lease
a car that they never will. This let's you call it something else. Also, there are some
states where you can't lease a car (Texas) and this gives those people some of the
same advantages.

BTW: I leased my own Passat instead of VW's PPP (Driver's Option Plan) and I'll be
leasing a 2002 A4 this fall.

Monte McCall
Business Manager
B.A. Wackerli Co Audi/VW

jprice@CPS

Interestingly enough, I was inquiring about this a few days ago at the local dealership here, and basically got the same information you just posted.

30 days until car is delivered and I still have to come up with the money! :-o

improved just pino

I went to www.audiusa.com and went to their calculators page. From here, I actually worked out a plan where my PPP was $30 cheaper a month than a lease. With all figures being equal then, how does that happen?

Also, what did you mean by 'the factory buys them down'?

I know jprice said he was doing this, and I was thinking of doing this if I go new.... thanks for the help on this!!! I appreciate it tremendously!

PS- do you sell A4s? You would me make a killing if you gave good deals to fellow AWers 8-P

-Phil, almost A4

jprice@CPS

Actually, after talking with the dealership, I'm going with a regular lease

exA4

I estimated a residual value, and left that amount for a final payment after 3 years. Worked out alright. Plus I can sell anytime and pay it all off.

Tough to get a good rate these days though.

LCP

Since when can't you lease a car in Texas?

ChristopherII

I agree, I know many people who lease cars here and ads are on the radio all the time.

Bob W.

I live in TX and lease one of my cars. Another point you didn't mention is that with a lease, the leinholder is the bank...with premier purchase or any balloon finance, you actually own the car.

improved just pino

quoted a leasing finance rate of 2.7%, and Financing rates between 6.79/5 - 6.99%. I though with a lease, you don't finance.... what's the difference and are there examples out there?

Thanks

-Phil, almost A4

improved just pino

Why did you decide to go with the regular lease and not the PPP?