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Car Lease in Los Angeles: Potentially Costly Mistakes You Should Avoid

Purchasing a car in Los Angeles may not be as attractive to some people today as it was when tax laws were not as strict. Gone are the days when you can apply for interest write offs on auto loans or for investment tax credits and sales tax deductions. The overall cost of a car purchase has increased to a point that even those who can afford it have become reluctant. As a result, more and more consumers are considering leasing instead.

Benefits of Leasing a Car

A lot of local consumers these days lease a car in Los Angeles for a number of reasons. Besides the fact that leasing is cheaper than buying, it also allows you to conveniently get a new car every few years. Furthermore, you can pick the nicest model in the showroom. When it’s time to replace your car, you don’t have to go through the hassle of selling it to buy a new one. You can simply setup a new lease contract, and you have a new car again!

Common Blunders to Avoid

Huge Upfront Payment. A common practice in car purchase, making a huge down payment does not lower the rate of the lease. Instead, it pays for part of the lease, which is why you see the monthly fee slightly reduced toward the end of the contract. While lowered rental fees may sound beneficial, you may lose that money if the car is lost or stolen.

Annual Mileage Limit. It is normal for most Los Angeles car lease companies to set an annual mileage limit for all its units on lease. The reason for this is that they want to ensure that the vehicles are not pushed to their limits, and remain in good shape upon return. Before setting up a car lease, make sure that you know just how much mileage you really need out of the car so that you won’t get penalized for any extra mileage you might incur. If you will use it regularly and travel long distances, you might need mileage of 12,000 to 15,000.

Long Lease Term. One of the most attractive benefits of a car lease is it gives you the chance to have the latest models every leasing period. Signing up for a lease contract of five years or more will defeat that advantage. Additionally, the longer the lease term, the higher the risk of accidents and maintenance issues that could cost you a fortune. Auto experts say the ideal maximum period for a lease is three years.

To further understand the nitty-gritty of leasing a car, seek advice from leading dealerships like Diviniti Auto Dealer.

Source:

How to Lease a Car, howstuffworks.com

5 dumb car leasing mistakes to avoid, bankrate.com

Mistakes to Avoid when Leasing a Car, bankingsense.com

When Is Leasing a Car Better Than Buying?, lifehacker.com