Leasing a car can be complicated, mostly because it involves a number of terms that shoppers often find confusing. If you’re thinking about signing an Audi lease, this glossary from our Audi dealers might be very helpful.
- Term: A lease term is another word for the length of your agreement. Generally, you’ll be able to choose how long you want to lease your car for, ranging from 24 to 60 months.
- Capitalized (Cap) Cost: A cap cost is the total price of your lease. Once this is determined – and the money factor is added up – you’ll be able to figure out what your monthly expenses will be.
- Money Factor: The money factor is the interest you will be paying every month. This will be expressed as something like “0.00020.” To determine what this will cost you in terms of a monthly interest rate, multiple that number by 2,400.
- Capitalized Cost Reduction: Anything that lowers the cap cost is the cap cost reduction. This could be a trade-in vehicle or perhaps a rebate.
- Residual: The residual is what your vehicle is expected to be worth at the end of your lease. This will be calculated ahead of time.
- Depreciation: When your lease ends, the value of your car will be determined, and the depreciation – which is a loss in value – will be factored in.
Have Your Leasing Questions Answered at Audi Nashua
If you have questions about these terms or anything else related to leasing, get in touch with Audi Nashua. If you’re ready to lease a new Audi now, you can do it online or over the phone. Then, we can have your vehicle delivered right to your home.