Here at Audi Warwick, many drivers are curious about the benefits of leasing. For those who may be pursuing that financing option, there are benefits to consider. One such benefit includes the lower monthly cost often associated with leases. In fact, when comparing monthly lease prices and an automotive loan, the difference can be striking. Why are leases generally more affordable, though? And is leasing a good option for you?

The main difference in monthly price between these financing options comes down to how you acquire them. When you buy a car, you will most likely have to take out an automotive loan. Your monthly price is calculated using this loan. Mainly, it takes into account your down payment, your loan amount, your APR, and its length. Because of that, monthly payments on automotive loans are often higher – especially for luxury models.

When you lease a vehicle, you aren’t taking out an automotive loan. Your monthly payment is thus not based on the purchase price of the vehicle. Rather, leasing prices are based on a car’s depreciation as you drive it. They also take into account any down payment you include. This is why leasing is good as a short-term investment opportunity, rather than a long-term option.

If you would like to learn more about leasing and our vehicles, stop by Audi Warwick in Warwick, RI. Our team can help answer your questions. We can also provide you with insight into the purchasing process.

We look forward to assisting you with all of your vehicle-related needs.

Categories: Finance, New Inventory