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Archive for August, 2012

There is a wide range of financing alternatives for customers in search of a new automobile. Of course you can pay cash, but for many if not most that choice involves factors such as the annual percentage rate and a “cash back” incentive. Cash back is a popular enticement that dealerships offer in order to encourage people to buy a new vehicle. While these offers seem like a good deal, potential buyers should weigh other factors to determine if the cash-back incentive makes the most financial sense. Here are a few common options explained:

Cash-Back Program:
Cash-back incentives typically are offered by the car manufacturer as a cash-back reward for people who buy a new car. For example, a consumer goes to buy a new Audi from an Arizona Audi dealer, and agrees to a financing plan, they could receive a ‘cash-back’ incentive to use as part of the cars down payment. Ultimately the cash back in conjunction with whatever discounts will allow the cars price tag to come down thousands of dollars for the consumer.

APR:
A new car is a major purchase, and few people pay cash for it. Most consumers obtain a loan to buy a new car or finance the purchase through the manufacturer or a financing department. A car loan, like any loan, comes with interest rates, known as an annual percentage rate, or APR. For example a consumer could get a 2013 Audi A4 2.0T Quattro Premium for $389 per Month for a 39 Month Lease.

Low APR or Cash Back?
Some car manufacturers offer a combination of cash back and a low interest rate. Some of these offers are either/or, meaning the consumer may choose either the cash-back reward or the low interest rate, while others offer both cash back and low interest.

Calculation:
If an Audi Tucson consumer is faced with the decision of purchasing a new car with a cash-back incentive or a low APR, they must perform a few calculations. There are several automobile websites that offer calculators that help with this task. For example, if you’re offered $5,000 cash back or a 1.0 percent APR on a 48-month loan for purchase of $24,230—with no trade-in or cash down—you’ll save $13 per month by choosing the low financing over the cash-back offer.

Cash Purchase vs Low APR:
Another option for Arizona car buyers is to skip financing altogether and pay for a car in cash. Buying a car in with cash saves you money in the long run as you don’t have to pay interest, but it also takes a lot of money out of your pocket. As long as you aren’t taking money out of your emergency funds or selling other assets to purchase the car, buying a car with cash is often a good option.

For more information on any of the vehicle deals in this article as well as many others, come by Audi of Tucson.

Until now, the A6 has only been available with front-wheel drive and a continuously variable automatic, and only 211 hp. But now Audi has upped the anty by adding Quattro all-wheel drive and an eight-speed automatic transmission to the A6 2.0T. While the FWD/CVT models will still continue to be made, Audi predicts the sales of the turbocharged A6 2.0T will pick up substantially now that the car is more in line with the Audi brand.

Audi is also aggressively driving the price down on both front- and all-wheel-drive A6 2.0T models. At only $43,095, the front-drive A6 2.0T that is on sale today is a great deal. This version comes equipped with a multitude of high quality features. The When it hits dealers later this summer, the A6 2.0T with Quattro will ask just $45,295 in Premium trim. A Premium Plus version—which would impress any Audi A6 Tucson driver that includes Audi’s superb MMI infotainment system, navigation, fancier wheels, xenon headlights, and a rearview camera, among other kit—starts at $49,595. Audi’s entry-level A6 undercuts BMW’s four-cylinder 528i by several grand. A 528i with xDrive all-wheel drive would cost well over $50K were one to equip it comparably to the Premium Plus A6 2.0T Quattro

The horsepower numbers may not be too impressive considering a luxury sedan in the A6′s class with 211 or 240 hp may sound underpowered, but it wasn’t too long ago that such numbers were exclusively six-cylinder territory.

In addition, the four-cylinder A6 is a great fuel efficient option that doesn’t require the extra buy-in costs of a hybrid or diesel. Although there have been rumors that Audi will offer both a hybrid and diesel version of the A6 further down the line. The 2.0T engine found in the Audi A6 with front wheel drive affords a highway fuel economy rating of 33 miles per gallon with 25mpg around town and an average of 28mpg while the all wheel drive V6 models with the 8-speed transmission offer 19mpg around town, 28 on the highway and 22 combined. We can expect to see a drop in fuel economy compared to the 2.0T front wheel drive models but the 2013 A6 2.0T with the 8-speed transmission and the Quattro drive system should still offer fuel economy that is quite a bit better than the 3.0T models.

For more information on the Audi A6 head to Audi of Tucson.