Yes, You Can Lease a Used Car

Yes, You Can Lease a Used Car

Used cars are a viable option for people looking to pay modest payments for ‘certified’ used cars. The benefits of leasing begin by a comparative low payment and a hassle-free return at the end of the contract.

Most used cars are available for lease from franchised car dealerships, have less than 48,000 miles clocked on the odometer and are five years old or less. When you shop a CPO (Certified Pre-Owned) vehicle, you have the option of buying it at the end of lease, just the same as with new cars.

Tips for Used-Car Leasing

For used cars, here are some helpful tips:

  • Bargain the price down if you are working with a dealer and negotiate as if you were buying the car instead.

  • The warranty on the car should be comprehensive and make sure it lasts for the duration of the lease

  • At the time of signing the lease, there are mileage limits spelled out. Make sure you stay within the limits, as all extra miles can cost you as much as 25 cents or more.

  • Used cars need a historic check. That means, make sure it did not have any major accidents in the past, was wrecked or salvaged, or had its odometer rolled back. A clear report is important for you to consider driving or owning this vehicle

  • Before you sign the lease, it is good to have the vehicle checked from a qualified mechanic.

Benefits of Leasing a Used Car?

There are many benefits of leasing a used car. Let’s list them out:

Lower Payments

Leasing a car often has a lower monthly payment compared to financing a car with the same loan terms, since with a lease you're paying for the depreciation of the car during those years rather than the whole vehicle cost.

Better Value

Depending on the mileage and model year of the CPO car you're buying, the value of the benefits will vary. At the end of your lease term you find better value as compared to a new car. That said, you should check the current market prices and factor in the cost of maintenance and warranty to ascertain the buyout of this car.

Extended Warranty

To alleviate any extreme out-of-pocket expenses from repair bills for old cars, it is recommended to invest in an extended warranty. You can buy one from the dealer or a third party too. The price of coverage is often dependent on which driver and which vehicle is applying for the coverage.

Lower Insurance Cost

The make and model have a bigger impact on insurance premiums than age. If your older car was made abroad and requires expensive replacement parts or is a favorite with car thieves, it may cost more to insure than a newer vehicle