What to Know About Audi Financial Before You Borrow
Audi Financial offers an easy online application process for car buyers. For someone interested in buying an Audi, the carmaker’s financing company offers competitive promotions. But it might be better for financing a new Audi than for a used vehicle purchase.
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|Loan Terms||36 – 72 months|
Whether you’re picturing yourself cruising in a new Audi TT RS Coupe sportscar or on a family trip in a pristine Audi Q5 crossover SUV, you’ll need to finance at least a portion of that new luxury car.
About 43 percent of U.S. adults rely on financing for their automobiles, CNN reported. Your financing needs can be managed through a plethora of lenders, but if Audi has caught your eye, then you may want to consider Audi Financial Services, the carmaker’s independent financing institution. That’s particularly true if you’re considering a brand-new vehicle.
Audi Financial, just like other auto financers, determines rates based on a variety of factors, notably an applicant’s credit history and debt-to-income ratio (DTI), as well the model, total price, and even the year of the vehicle.
Additionally, Audi, through Audi Financial, also runs a variety of promotions, each of which can directly impact the rates available at any given time.
For that reason, to secure a specific rate, you’ll need to contact the dealership. However, Audi Financing typically provides interest rates for both loans and leases between 3% and 6% APR. Lower rates are typically extended to those who have excellent credit and have a shorter-term loan.
If you’re financing a vehicle, you can expect term options that run from 24 months to 72 months. Those who prefer the lease option typically will have terms between 12 months to 48 months.
Regardless of which you choose, you’ll likely run into a few fees. Those purchasing a new Audi will likely be responsible for a destination fee, which nears $1,000 (currently $975). Those who are leasing will typically be charged a dispensation fee of $350 to $500, and a vehicle deposit. Keep in mind that leases typically are accompanied by annual mileage options, requiring payment for any mileage that extends past the original agreement ($0.15 to $0.25 per mile).
Whether you’re purchasing the car through an auto loan or leasing your next Audi, you’ll also be required to pay sales tax and registrations fees, which vary by state.
One of the primary reasons you may finance or lease your next Audi through Audi Financial is branded promotional offers, most of which are not accessible to those who choose to finance through a third-party lender.
Though many of these offers do include low-interest rates, Audi is particularly fond of offering cash value promotions like $1,000 off or first-payment waivers.
Additionally, Audi Financial does offer a variety of buyer-specific programs, including those for military members, college graduates, and first-time buyers. Though these programs aren’t available to all buyers, anyone considering financing or leasing an Audi should check them out before making a purchase.
Finally, if you prefer to manage most of your interactions online, even when it comes to buying a new car, you may appreciate Audi Financial’s online application process, which allows users to apply for financing from their phone, tablet, or desktop in about 10 minutes. Those who take the online application can determine their eligibility even before stepping into a lot. Though keep in mind, this type of financing application will result in a hard inquiry on your credit.
Though Audi has decent financing offers through Audi Financial, you might find more competitive rates through your bank or another third-party lender. Before you make your purchase, investigate your options, particularly if your credit score doesn’t place you in the first tier of auto customers, which are typically those with a score above 700.
Further, Audi Financial may not be a great option for those looking to purchase used Audis as rates are typically not very competitive, so they can actually end up costing buyers – even those with great credit –more in the longer run. So it can be a good idea to shop around.
Audi Financial Alternatives
- Loan amounts from $5,000 – $100,000
- No LTV, age, make, or model restrictions
- Funds deposited in your account as soon as the same day you apply
- Auto loans made easy for any credit situation
- Start loan process in 60 seconds
- No-hassle process – no obligation
- One application – Up to 4 loan offers in minutes
- Receive online certificate or check within 24 hours
- Use your check to buy the car you want
The Bottom Line
Should you finance through Audi? Like many branded finance options, Audi’s is designed for buyers who have excellent credit and are looking to purchase a new vehicle. If you fit into that category, you might benefit from Audi Financial and its regularly occurring promotions that offer low interest rates and cash rebates. Audi Financial may offer a highly competitive rate.
If you have less-than-stellar credit or if you’re purchasing a used vehicle, you could find a better financing rate elsewhere, so it’s important to shop around before you finance with Audi Financial.
>> Read More: Is it better to finance a car through a dealer or bank?
Author: Jeff Gitlen, CEPF®