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.
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.
Who has responsibility for insuring the vehicle in an auto lease?
You. The Driver.
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.
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 like 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”.
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.
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.
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.
Do you lease autos to both individuals and businesses?
Yes we offer auto leases to both.
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.