Can You Lease A Used Car
You can definitely lease a used car especially if your budget can’t take the pressure of another financing option. The process is similar to that of leasing a new car: you will still have to contact a dealer, negotiate the price, sign an agreement and oblige to cover some monthly payments. The company that is leasing you the car will first check your credit and only then allow you to lease it. Once the lease expires you will return the car to the leaser and sometimes, if you express this wish, you might be aloud to purchase the car.
The only difference between a new car lease and a used car lease is the type of car you are leasing. A used car is less expensive, therefore, in theory, the cost of the lease should be significantly reduced (a lease is based on the vehicle’s depreciation during the lease). Usually, a used car lease is possible when a driver that has leased a new car terminates the lease agreement before it legally expires. That’s when the leasing company usually decides to transfer the car to another interested client.
The main reason why people choose to lease a used car is the more affordable cost. On the other hand, before making up your mind you should also take interest in the new car leases. That’s because, nowadays, leasing companies offer interesting lease deals on new cars due to the many discounts, rebates and promotional incentives that have been used to encourage drivers to lease cars. That’s how a new car lease can potentially become as cost effective as a used car lease.
When leasing a used car you need to take into account several factors. You need to pay attention to the true market value and do your homework in order to be able to negotiate a price that can be considered fair. The mileage is another issue. A car with high mileage is not such a great deal. If you want to lease a used car that still holds some of its value you should choose one that has an average of around 15,000 miles a year. A third expense that you should consider is that required by repairs. Used cars come rarely with a warranty, so you will have to deal with all the car’s problems once you sign the agreement, if the manufacturer’s warranty has already expired. Before signing the lease also make sure you read it twice and look for any possible additional fees or not mentioned charges that might attack your budget.
If you are wondering what type of used cars you will be leasing you might be happy to know that you will benefit form the same variety of make and models as the one available for new car leases. That’s because many of this used cars were already leased as new cars by other persons. There is also the category of luxury cars that you can lease as used. These are excellent candidates and you should definitely try to find a Jaguar, a Bentley or even a BMW.
If you want to save money by leasing a used car you should look for a car less than 2 years old, “VAT Qualifying” and with less than 30,000 miles on board. Concerning the manufacturer, I’d opt for a British car because those usually depreciate heavily in their first 12 months of usage. But in the end, you should just stay away from cars that are too old and make sure to check the residual value because that’s a number that will affect your budget.
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Post tags: Tags: car lease, financing option, lease used car