BMW is letting Audi use its name on its upcoming lease deal, which will give the German automaker a $1,400 credit on a full $3,600 purchase price.
The agreement includes a $100 cash rebate on lease payments for new vehicles and a $250 credit on the first $7,500 paid over 30 months, and it includes a full mileage allowance of 150,000 miles.
Audi is only allowed to offer a lease for up to 12 months.
The lease agreement covers the next three years, and the new lease begins on March 1.
The $1 million credit on purchase price is the first significant subsidy that Audi has given its Audi A4 sedan, which is being built by BMW in partnership with Mercedes-Benz.
Audi has already offered an $8,000 rebate for first-time buyers, but the deal is the biggest yet for an Audi model.
“The first thing we want to emphasize is that this is a credit of $1.3 million, and that we’ll be taking a $50 rebate for any buyer who chooses to purchase their Audi A5 from March 1,” said Matthias Hofer, a senior BMW marketing manager.
We have not announced the amount of the rebate, but we will offer it as a partial payment, Hofer said.
“The total payment for this loan is $7.1 million, which includes a partial rebate.”
Audi is offering the $1m credit in conjunction with the Audi R8 sedan, the second-generation Audi A6 sedan, and a limited-edition BMW X5 coupe.
The new deal also includes a credit for a second year of lease payments, a $2,500 cash rebate for all new vehicles, and an annual maintenance fee of $600.
Audi declined to comment on the lease offer.
This is the second BMW lease offer to come out of the new partnership between the two automakers.
BMW and Mercedes-AMG, the German carmakers’ parent company, agreed in December to a $6.5 billion deal to buy Audi.
The two automakers have also been working together on a range of other products, including the Audi A3 and the Audi Q7.