A Premier Purchase provides Audi clients the ownership benefits of a traditional fixed rate auto loan combined with the short term commitment and lower payments normally associated with leasing.
Payments consist of a number of monthly payments (the term) and a final or balloon payment (the residual value). The final or balloon payment is made only if the client intends to keep the car past the original term. If the client intends to return the car, the final balloon payment is not made and the car is "sold back" to Audi Financial Services or its assignees.
Audi's Premier Purchase is a closed ended obligation. This means the residual value is not dependent on market conditions at the end of the term. This is of significant advantage to the client as all the risk of future value reverts back to Audi while any gain in equity can still be retained by the client. For example:
Scenario 1) Market value of the car is greater than final balloon payment - Client would elect to purchase outright or trade the car towards next purchase to capture their equity.
Scenario 2) Market value of the car is less than final balloon payment - Client would elect to sell the car back at the predetermined residual value and effectively turn the car in.
Advantages over traditional auto loans:
• Risk of future value reverts back to Audi
• The option to turn the car in
• Shorter term (24-48 months) allows for more frequent upgrades
• Lower payments enable additional equipment or lowered cost to own
Advantages over leasing:
• No lender $795 Lease acquisition fee
• No $350 turn in or disposition fee
• No security deposit required
• Lowered insurance coverage requirements
• Car is titled to you. You are the owner, not the leasing company
Similarities to leasing:
• Excess mileage charges apply. Always contract for your expected annual mileage to avoid end of term mileage charges. Annual mileage intervals start as low as 7,500 miles per year and are available all the way up to 30,000 miles per year.
• Excess wear & tear charges may apply