Leasing a used vehicle is a great option but only if you fully understand the process. It would make a favorable deal if you get a relatively new car that is in good condition. If the vehicle is under factory warranty, you can get it inspected and repaired. But if the vehicle is damaged or it is old then it is not a good option.
Advantages of leasing a used vehicle:
• Lower payments
By now, it is well understood that a major portion of the lease payment goes towards depreciation. Most of the depreciation occurs during the first 2 years of the car so there will be less gap to cover with pre-owned leases. The capital cost for a pre-owned car is lower as compared to a new car just likes its sale price. In the end, you will be paying lower monthly payments by leasing a used vehicle.
• Major repairs may be covered
If you negotiate better, you can find a used car lease with great repair coverage. As most of the cars are 3 years old, they are twice as likely to get repaired. You can use this leverage as a deal maker or breaker. If you don’t get a comprehensive coverage for the repair or breakdown as part of the used car lease, it is recommended to avoid leasing that car. You would never want to get stuck with a lease agreement of a car that doesn’t even work properly.
• Turn it in and get another one
As the lease contract ends, you have the freedom to turn in the car or walk away with another car. But to avail this offer, you have to make sure that your mileage limits have not exceeded and the car is maintained well. In short, when you are returning the car, you shouldn’t owe anything to the company.
Never lease a used vehicle that is off warranty. Its maintenance cost can add up very quickly. You will be financially liable for any damage or problems with the vehicle by the end of the lease term. You can also assume an in-process lease on the vehicle. They are available on low mileage and no down payments are required. However, this option is available for only late model vehicles.
