Nick R.

Have any of you "bought" your car with the Premier Purchase option instead of leasing or retail financing?

On the AoA website I spec'd out a 1.8TQ dolphin gray w/ sport pkg, 5 spd, cloth interior, xenons. MSRP is $29,310

With the payment calculator, I spec'd out a 60 month buy, 48 month lease, & 48 month Premiere Purchase. All with $0 down, the buy and P.P. with 3.9% APR - 12,000 miles on the lease and P.P.

The payments are $538.47, $412.44, $349.61 respectively. Why is the Premiere Purchase so much cheaper than the lease??

I think you pay the taxes differently. I know with the lease, you pay your sales tax (in KY its 6%) on your monthly payment. So for this example, $412.44+6%=$437.19/mo x 48 months = $20,958.12 approx total payments. I believe on the Premiere Purch you pay your sales tax on the vehicle price - $29,310+6%($1758.60). So I divided the total taxes ($1758.60) by 48 months - so if you averaged that over your payments, it would make your monthly payment $386.25. That's still a lot less than the lease payment. $386.25x48 = $18,539.88 in approx total payments.

I must be missing something....

Why isnt everyone doing the Premiere Purch option instead of leasing? I know it isnt available in all states, but I've never heard of anyone doing it.

Can you help??

IBD SV

Okay here is the way I understand it. Regular straight out financing gets the lower APR like 1.9 2.9 etc. Leasing gets varying monetary factors can be good rates depending on the promotion. PP gets regular financing rates like 7.9 8.9 etc. You do not get the lower apr from regular financing associated with the PP. I wanted to do the PP and buy it but the salesman explained that the PP had a higher apr and that if i wanted to buy the car it would be cheaper to do regular financing. If anyone knows otherwise please correct me.

Der Audi

I live in CA and can't do Premiere purchase. From what I read though, the car is titled in your name so it does not look like a lease. There is a balloon payment due at the end of the term which you can pay-off, finance, or give it back. I am sure the balloon payment is more than the residual value of the lease you configured. There is no way they are going to screw themelves out of money. Also, the money factor they use on the website for leasing may have been a higher interest rate equivalent than the one you put for the Premiere purchase.

IBD SV

thats right I did forget to mention the ballon payment at the end of the PP...Thanks Der Audi

Big D

In some states also, on regular leases, you have to pay property tax.

Nick R.

Yeah, you do have the option of turning the car in or buying it for the baloon, which is typically higher than the residual. I was planning on turning it in.

I called a local dealer and the current PP apr is 7.25%. That takes the payment to $414.77 - within $2 of the lease, but you have to pay the taxes upfront on the purchase price as opposed to paying the taxes on your monthly payment.

Thanks, it makes a lot more sense now.