The main advantage of taking out a personal lease on a used car instead of a new car is affordability. A lot of the time you are taking over somebody else’s lease who took the car new but upgraded in term. This means the lease you take over is only as long as is left on the original agreement. On this basis, you will generally lease a car over a shorter period (the remainder of the term of the original lease) meaning you will not be paying as much as you would for a longer term lease on a new vehicle. Most of the value of a new car depreciates in the first year so with a used car this has a knock on effect to lower monthly payments.
However, does this make a personal lease on a used car a good deal? It can certainly offer lower payments than both financing a used car with a loan, or leasing a new car. Despite this, leasing a new car tends to work out as a more cost effective proposition overall. This is because leasing firms negotiate the price of new vehicles and can typically secure much more cost effective terms. Promotional incentives, discounts and rebates can make a new car lease a better deal and cheaper than leasing a used car. The majority of companies will offer leasing on both used and new cars – so find the model you want and see what options are available. Compare quotes on both used and new cars to find the right deal for you.
Used car leasing: Things to consider
It’s not as easy to evaluate a used car lease as it is to evaluate a new car lease because there are many additional factors to take into account including: True market value – Research your car and it’s market value before negotiating a fair price. This is the key to securing a good deal. Mileage – With a used car it’s really important to check the number of miles on the clock. A high mileage car is unlikely to be offered a good leasing contract. For a car to be deemed good value it should not have any more than 15,000 miles on the clock per year. So a car less than a year old should have no more than 15,000 miles on the clock, a car two years old 30,000 miles, etc. Cost of repairs – Most used cars will not come with any warranty, unless there is time remaining on the manufacturer’s warranty. Therefore any problems that you encounter become your responsibility the minute you sign the agreement. Read the contract thoroughly – With any used or new car leasing agreement you should read the contract thoroughly to avoid being hit with add-on fees or unexpected charges. An example of this could be excess mileage- if you agree to 10,00 miles per year in your contract you will be charged a cost per additional miles over this.
Used car leasing: What used cars are available to lease
As the majority of used cars made available for leasing are those that were already midway through a leasing agreement, the range of vehicles available is almost as wide as the options available with new car leasing.
Previously-owned luxury vehicles make particularly strong leasing candidates. Some of the leading models available include models Audi, Jaguar, Mercedes-Benz and BMW.