What is an auto lease?
An
auto lease is a method by which an automobile may be
financed for a specific term between 24-66 months,
based on your automotive needs. Leasing allows one
to drive a more expensive vehicle for less each
month, because the agreement sets aside a residual
value of the vehicle for a specific time at a later
date. Payments include a monthly use charge and
interest. The monthly use charge compensates the
lease bank or leasing finance company for the
depreciation the vehicle during the term of your
auto lease. The interest is the charge for the use
of the lease bank or leasing finance company's
money. As with a conventional auto loan, the lease
bank or leasing finance company owns the automobile.
All taxes, excess wear and tear, maintenance, and
insurance costs are the responsibility of the
lessee.
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Are there mileage restrictions on annual mileage
for leased autos?
Yes.
Before you sign an auto lease agreement you need to
make sure you read the restrictions on mileage.
Normal mileage for an auto lease is 15,000 miles per
year and most auto leases have an option to choose
between 18-25k miles per year. If you drive over the
agreed mileage, you will incur additional charges
that usually ranges from .12-.20 cents per mile.
These fees are described in your lease agreement in
advance.
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Who
has responsibility for insuring the vehicle in an
auto lease?
You.
The Driver.
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How
can Austin Auto Leasing offer such low
payments?
Volume
Buying Power. Austin Auto Leasing acquires
hundreds of autos, trucks, suv's and vans every
year. This immense buying power allows us to get the
absolute lowest price on any given vehicle, allowing
us to pass the savings on to you.
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What are the advantages of an auto lease over a
purchase?
There
are many advantages to auto leasing compared to
buying. First, an auto lease allows you to drive a
more expensive vehicle for the same monthly payment
as a lesser vehicle would on a purchase. Second, Gap
Insurance is automatically included in the state of
Texas. This means, if something happens to the
vehicle, like a wreck where the vehicle is totaled
while you are leasing it, it's paid for. No matter
what you owe, or what it's appraised for after the
wreck. Gap insurance pays the difference. When you
buy a vehicle, you own nothing but an obligation to
pay for it all the way to the end regardless of
whether something happens or not. Yes, full coverage
insurance will pay the market value of the vehicle,
but whatever you owe over that is your
responsibility. When you lease a vehicle, you own
options at the end. These options include; giving
the vehicle back and walking away. Keeping the
vehicle and paying out the residual, which the bank
will usually finance happily. Lastly, you can trade
the vehicle in and apply any equity to your next
vehicle. It's like John P. Getty, the rich oil
billionaire said; "You lease what depreciates and
buy what appreciates".
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Who
is responsible for maintenance in an auto lease?
Ensuring the vehicle you lease is adequately
maintained is up to you. Interstate offers our own
exclusive maintenance packages. Our maintenance
packages include full servicing in line with the
manufacturer’s recommendations, replacement tires as
necessary, brakes, pads and all other serviceable
items throughout the contract.
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What is reasonable wear and tear?
Normal
wear and tear is expected in an auto lease. Contact
your vehicles lease lender to get their specific
criteria.
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I
can’t find the car I want on your website, can I
still get it at Interstate?
Yes.
At Austin Auto Leasing we have connections with
every vehicle manufacturer. If you don't find your
vehicle on our website, give us a call, and we'll
get it for you if it's available.
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Do
you lease autos to both individuals and businesses?
Yes we
offer auto leases to both.
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Do
I need to pay a deposit?
Auto
lease deposits vary, based on which lease bank you
are using and credit (beacon) score. Typically,
customers with a beacon of 700 or higher do not pay
a deposit on their auto lease. Below that, it
becomes a case-by-case basis. Contact us to discuss
your needs.
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Glossary |
