3 Things to Know Before You Sign a New Car Lease in Los Angeles
While leasing a car is often a better option than buying your own new vehicle, it’s still important to understand the differences. While a new G63 lease in Los Angeles won’t be more complicated, it will be different. If you take the time to learn more about the leasing process, you’ll be better able to get a good deal on your lease.
Know the Residual Value
The residual value of a car is the amount it will be worth at the time that your lease expires. This amount is a percentage of the MSRP, and it will determine the amount you’ll pay each month. A higher residual value means you’ll pay less on your monthly payments. A $30,000 car that will be worth $18,000 at the end of your 3-year lease will leave you with a 60% residual value or $12,000. Spread across 36 months, you should expect to pay $333.
Know the Money Factor
When the car dealer talks about the money factor, they are referring to the interest on your lease. The money factor can be converted into a more recognizable rate of interest by multiplying it by 2,400. For example, a money factor of 0.00125 multiplied by 2,400 will leave you with a 3% interest rate. The lower the money factor, the lower the interest.
Know the Mile Limit
When you consider a G63 lease in Los Angeles, be sure to read the fine print. Some leases limit the miles you can drive within a year up to 10,000 miles. The average person drives 12,000 miles or more in a year, so you may want to look for a lease that allows you to tweak that limit.