Getting around the city of Los Angeles, you’ll need a car. However, since it is still a major purchase, you’re probably going to want one of the newer models on the market if you want to be sure of a quality model. The problem is that brand new models tend to have price tags in the four to six figures, and car loans can only go so far; This is where a car lease comes in. When you take out a lease, you just pay a simple down payment, and then pay a monthly fee for the duration of the lease. At the end of the lease, you return the car to the leaseholder.
Mistakes to Avoid
When you’re planning to lease a car, there are quite a few mistakes you may want to avoid. First of all, there’s the fact that you might end up paying too much during the initial lease agreement. Usually, the initial payment is 20% of the purchase price of the car. As someone with a limited budget, this can be a godsend. However, if the car leased to you was subsequently involved in an accident, it will be confiscated from you and you’ll lose the down payment. Therefore, try to limit what you pay to ensure you don’t lose as much money, in the unfortunate case that you do get involved in an accident. Second, don’t forget to get some insurance. An accident with a leased car may end with you having to actually pay for the car completely. Getting gap insurance ensures you’ll have a safety net on liability, and won’t have to pay for everything.
The third mistake to avoid is not reading the lease agreement. There may be clauses that add to your fees. For example, some lessors stipulate that you need to keep under 12,000 miles a year of driving or you will need to pay an additional fee. Finally, you’ll want to keep your leased car well-maintained. Many lessors add to the fee when they discover any damage on a returned car.
How to Make the Process Smooth
Now that you know what mistakes to avoid, it’s time to contact car lessors like Diviniti Auto Dealer. The first step is to choose the car you want to lease. Look over their spec and take them on test drives. Once you’ve settled on one, talk with the dealer about the lease agreement. If possible, try to negotiate a bit.
Once you’re satisfied, just sign the agreement and pay the down payment. You’ll soon be driving off the lot with your own leased car.
How to Lease a Car and Get the Best Deal, The Wall Street Journal
5 dumb car leasing mistakes to avoid, Bankrate
How to Lease a Car, HowStuffWorks