Obtaining a car is probably one of the most important investments that you’ll make in your life. Therefore, it is only wise that you do your research so that your money is spent well. Before going through the current lease specials in Los Angeles, you should consider the following factors so that you can decide which deals are the best for you.
Since the biggest element to consider is your financial health, your first concern should be about your monthly cash flow. Compared to financing a new car with a car loan, leasing often requires lower monthly payments since you’re only paying for the depreciation of the car during the lease term. If you’re working on a limited budget, it would be best to visit dealerships like Diviniti Auto Dealer that offer Los Angeles lease specials than get the vehicle new.
Lease agreements command lower initial payments and less sales tax compared to buying a brand-new car. There are even times when dealers waive the downpayment as a promo or incentive. With lower initial costs, leasing will have little effect on your cash balance.
Mileage affects newly-bought vehicles and leased cars alike. Therefore, you’ll need to consider how much you drive so that you can estimate the possible mileage you will require. If you lease a car, you will have to pay for excess miles you have acquired during the lease term. However, you can pay less for these additional miles by negotiating an agreed-upon amount when drafting the agreement. If you own a car, you won’t have to pay anyone else for extra mileage, but this can affect the value of the car if you’re planning to trade it in the future.
Wear, Tear, and Taxes
Keeping the car pristine is one of the main duties of the lessee. So, evaluate carefully how, when, and where you’re going to use your car so you’ll have a better estimate of the eventual fees for your car’s wear-and-tear. As for tax charges, lessees will be able to deduct the financing cost and depreciation value of their car from their taxes.
Before agreeing to lease terms, consider how long you’re planning to keep the car so you won’t have to quit the lease before your agreement is over and pay for extra.
(Source: When Is Leasing a Car Better Than Buying?, Lifehacker)