Question about Premier purchase

[leetcao]

Hi, I have been lurking the forums for a while now and it looks like I'm finally ready to make the big purchase on a new A4. So it looks like the dealer is offering me $1k off $32,700 if I do a Premier Purchase at 3.9% WAC. as opposed to a traditional purchase with 2.9% APR financing.

I wanna know if this is a good deal or are they basically making the deal sound sweet only to hit my wallet another way?

Any financial experts or people who have experience with this type of purchase, also what is WAC, this is my first car purchase btw.

[RisR32]

The premeir purchase is a balloon. Not a straight finance. In doing this you pay less because the payments are only based on the percentage of depreciation for however many years you choose to sign the contract for.

So say the car is 30,000 you pay $15,000 - 10,000 now in payments plus 3.9% interest.

At the end you have the choice of turning it in as a lease, selling it, financing the rest or trading it (yes you do save on taxes because this is a loan and not a lease)

There is nothing wrong with it and it's fairly easy to get out of. All you have to do is sell the car or use it as a trade on something else.

The only downfall is that you are making lower payments therefor the car will most likely be upside down until the last day of the premier purchase.

Plus the fact that you have a cap on mileage

So if you don't drive much
I think that it's a good way to go.

[kooltechie]

I believe WAC stands for "with approved credit".
Audi's been offering $1,000 rebate/incentive for leases, so getting $1,000 off MSRP doesn't seem like the dealer is giving any discount at all.
here's a link to a thread with pricing info: http://74.52.175.146/forum/showthread.php?t=199663
btw, I did a search for Premier Purchase (http://www.audiusa.com/audi/us/en2/F...rPurchase.html) and it seemed pretty much the same as leasing except the title of the car is in your name.
I purchased mine cuz leasing didn't seem to fit my situation and needs.
typically leasing would offer a lower monthly payment, but do your homework first and find out all the fees (i.e. acquisition fee) and money factor/rent charges - they could add up to be more than the total finance charges from a car loan with a good APR/interest rate.
since this is your first car purchase, I'd strongly recommend you to go with someone who has more knowledge in car-buying/finances.
good luck!

[i_audi]

If you run the basic numbers using an online auto loan calculator the difference between the 2 is the following:

2.9% at $32,700 for 5yrs is $586.12 per month. Interest over the 5yrs is $4,741.50
3.9% at $31,700 for 5yrs is $582.12 per month. Interest over the 5yrs is $6,181.50

This is not including sales tax, reg, down payment etc..

[GottaAudi2]

With the premier purchase you also have to consider what the contracted balloon payment interest rate will be. They might offer you 2.9-3.9 on the first half, but there is also an agreed interest rate on the balloon. I have current title to my A4 under the PP plan. Originally purchased at $500 over tissue, no zero down (paid nothing to acquire), 3.9% over 36 months. I have a balloon payment due of $19,500 in three months - the agreed contracted interest rate on the balloon is 4.5%. So I have some math to do here as I decide whether to keep the car, or buy new at some lower interest rates. It has 30K miles and current retail value is between $21-24K depending on where you look.

[DCEsquire]

Another thing to realize that I didn't is that you can extend a lease 6 months but they will not extend a premier purchase

[tloft4]

Another thing to realize that I didn't is that you can extend a lease 6 months but they will not extend a premier purchase

im sure hes been waiting for this exact info to sway his decision... 11 years ago

[DCEsquire]

im sure hes been waiting for this exact info to sway his decision... 11 years ago

It's the thread that came up when I googled it so it's for the next guy that asks the same question.

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