When you are shopping for a used car, one of the financing options you may consider is used car leasing. Many people are unaware that pre owned car leasing is available from some dealerships.
Is it a good idea to lease a used car? The answer to that question will depend on a few factors about the vehicle and the way you drive your car.
When Is Leasing A Car A Good Idea?
When you lease a vehicle from a dealership, you will sign a contract to pay a monthly fee to use the car for a specific period of time. Most car leases are for three years. The lease cost is usually much lower than the monthly payment if you purchased the vehicle.
Before committing to a lease, you should consider the following terms of leasing a vehicle:
- If the vehicle is used, you will want to know if it is still under warranty. You do not want to face major repairs without a warranty.
- Have the dealership define “wear and tear” on the vehicle. You will be responsible for any damages to the vehicle that are seen as outside of the normal “wear and tear” on a vehicle.
- There will be a restriction on the miles you can place on the vehicle each year. If you exceed these files, the dealer will have a per-mile fee for the overages. Make sure that you know what these fees are upfront.
- Inquire about any routine maintenance that the dealership provides for the leased vehicle or find out if you are responsible for oil changes and similar services.
So, Is Leasing A Car A Good Idea?
If you are comfortable with the terms and conditions of the lease program, leasing a used vehicle can help you save money each month. However, you must understand the terms of the lease, so you are not surprised at the end of the lease term with a large bill.
The most important factor to consider is mileage. Most leases allow you to drive 10,000 miles per year. That averages out to about 833 miles a month or about 200 miles per week. You will be fine if you know that you stay within these guidelines. If you exceed this amount of mileage each week going to work or running errands, or you want to take a long road trip soon, you may not want to lease a vehicle.
Can You Lease Used Cars From Any Dealership?
In most cases, the only dealerships that offer lease programs for used cars are those that have certified pre-owned vehicles. This benefits you because you know the vehicle will be in prime condition when you drive it off the lot.
Vehicles without this certification may not qualify for the lease program. You must be able to qualify for the lease program just like purchasing a new vehicle.
Can You Lease Used Cars From A Dealership For More Than One Vehicle?
It is possible to lease more than one vehicle from a dealership. Much like purchasing more than one vehicle at a time, you will have to qualify for more than one lease. If you are leasing two vehicles on the same day, you may even be able to qualify for additional discounts or perks from the dealership. Don’t be afraid to ask if there are any deals for leasing more than one car.
So Should I Lease Or Not?
In the end, the most important thing to consider when leasing a vehicle instead of making a purchase is if you can keep up with the terms of the contract. If you believe you can comply, then it may be the right choice for you.
Leasing can allow you to drive a larger vehicle or newer vehicle than purchasing. It can help you lower your monthly expenses, and you will not have to worry about trading in or selling the vehicle when you go to lease a new car.
Look for certified pre-owned vehicles that will qualify for the leasing program. Speak with your insurance company to find out if there is a difference in insuring your leased car. Most insurance companies will treat the leased vehicle the same way as they would a new car.
When you get the leased vehicle, make sure that you inspect the entire vehicle for scratches or dents and have any issues noted that may come up at a later time. Check the interior for any stains, rips, or other flaws so that you are not charged for these problems when you return the vehicle.
Make a note of the mileage on the vehicle so that you can calculate how much you can drive each month. Once you have checked all of these things and are satisfied, you are ready to drive your new vehicle.
When Purchasing A Vehicle
Always remember to run a VINsmart report on any used vehicle before making a purchase. A VINsmart report runs a complete history on the vehicle including whether it has ever been reported as stolen, involved in a major accident, or listed as a totaled vehicle.
VINsmart reports will also give you a registration history and mileage at registration. It reports any significant incidents related to the vehicle, such as being involved in a fire or flood.
When you are purchasing a used vehicle, the best way to ensure you make a good purchase is to know the vehicle’s complete history.