Tips for Leasing a Car in Los Angeles
Leasing a car in Los Angeles has become more and more popular over the last few years. The benefits of leasing a car are simply too good to pass up. This is especially true for those who do not have a ton of cash lying around in order to purchase a car. Let’s take a look at some tips for leasing a car in Los Angeles to help you understand the basics of leasing.
Before, car leasing was left to those who wished to temporarily drive the latest-model car without a long-term commitment. Leasing a car on a long-term basis has become commonplace and practical for those who desire a reliable method of transportation.
Purchasing a car at full price typically leads to selling it a few years later with a loss in value. Leasing a car, on the other hand, is based on the principle that the car is rented from the leasing company with payments to cover the loss in value.
For example, you might purchase a car for $20,000 and sell the car for $14,000 3 years later. You will already have a loss of $7,500 plus maintenance costs. You could lease the same car by paying this $7500 over a 3 year term, broken up into monthly installments. In general terms, when you lease a car you pay for the depreciation of the car vs. the cost of the car.
It is in the best interest of the car leasing company to retain the value of their vehicle for as long as possible during a lease term. This is because the car will be returned to them at the end of the lease period. For this reason, most car leasing companies will offer free maintenance for the car, plus the manufacturer’s warranty which typically lasts the duration of the lease. This can potentially save a lot of money compared to purchasing a car and paying for maintenance and repairs.
One of the main tips to keep in mind for leasing a car in Los Angeles is to understand all of the points of the lease prior to signing. There are normally stipulations in the lease contract such as mileage limits that can lead to additional fees. It is also important to ask about GAP insurance to make sure you are completely covered in case the vehicle is damaged or stolen.