Leasing a New Vehicle From Audi South Austin

Frequently Asked Questions (F.A.Q.) About Leasing a New Audi or Vehicle From Our Austin Dealership Serving San Marcos, Bee Cave, Lakeway and West Lake Hills

If you're in the market for a new vehicle, be it a gorgeously luxurious Audi or any other, then you'll want to consider leasing. There are many benefits and advantages in choosing to lease a new vehicle, as opposed to financing one for a purchase through a car loan. We here at our Austin, TX Audi dealership serving San Marcos, Bee Cave, Lakeway and West Lake Hills are happy to help you when it comes to finding the perfect new or used car, as well as the financing to help you pay for it. Explore these frequently asked questions about new car leasing, and be in touch if you need answers we haven't provided.

New Vehicle Leasing F.A.Q.

  • What is a lease? This might seem like a silly question, but many drivers simply aren't familiar with new car leasing. A lease is commonly considered a long-term rental, but that's not entirely accurate. Whatever you're paying for your monthly costs goes to the bank you're financing through, which actually owns the car, all for the privilege of driving it however you please, with some limitations. You'll set up a lease term of two or three years with a limit on annual mileage, which can be adjusted to suit your needs. The length of term and mileage limits will set your payments, which are basically going toward the depreciation of that vehicle as you tack on mileage and incur general automotive wear and tear. You'll also have fees and taxes to pay on top of that, as well as any mileage overages and excessive wear and tear.
  • What are the benefits of leasing a new car? There are many, but the main selling point is that when leasing a new car, your monthly costs will be lower than if you were to purchase a vehicle through a car loan. That means if you're working with a set budget, you should be able to fit a higher trim level with more features into a lease, compared to if you were to purchase your vehicle. Other cost savings come from less need to service your vehicle, since your lease will only last two or three years, as well as the vehicle being under factory warranty that would cover some types of repairs should something go wrong. Finally, another upside of leasing is your multiple options at the end of your term. You can pay off the remaining value of your car and it's yours to do with as you please forever, or you can choose a new lease, essentially giving you the ability to buy a new car every two or three years, all with updates in technology, style and performance.
  • What are some key numbers and figures to consider while leasing a new vehicle? There are several numbers you should pay close attention to as you explore your lease options. The sale price is an obvious place to start and will impact your leasing costs, while the residual percentage and amount will give you an idea of how much you'll be paying based on the anticipated amount of depreciation. To be clearer, your monthly payments will be lower with a higher residual percentage.

    Allotted miles and over-mileage charges occur when you exceed your lease agreements annual limits, which can really add up if you're not watching your odometer over the course of a given year. The disposition fee goes toward cleaning up the car at the end of the lease, and getting it ready for resale. This fee is waived if you decide to purchase the vehicle at the end of the agreement. Finally, the money factor is essentially a lower interest type of the APR that you'd pay on a car loan, and these rates tend to be lower than what credit unions or banks offer.

We know that's a lot of information to go through, and we're sure there are many more questions left to be answered. Visit us at Audi South Austin today and our sales and financing experts will take you through the leasing process, explain its benefits, and help you decide if a new car lease is the right fit for your needs and your budget.