Leasing a vehicle is a popular way to have your way behind the wheel without incurring the cost of ownership, and when you lease a car, you get a new vehicle every few years without worrying about selling the car when it depreciates.
Most leases are usually written for new cars, but leasing works for used vehicles as well. The fact that cars depreciate significantly in the first few years makes leasing a used car a practical option. With that said, the age of a car is a key consideration when you think about leasing your next car and this article will attempt to address that.
Leasing Considerations: Used Cars
Monthly payments are one of the most important concerns to new auto consumers. Due to the decrease in anticipated depreciation, the used car attracts lower a lease fee. Leasing a used car, therefore, allows you to drive a better model without busting your budget. However, before signing a lease for a used car, there are things you need to consider.
• Vehicle inspection: Let a professional mechanic have a look of the vehicle, and if there is any mechanical issue, let the dealership fix it before leasing to you. Otherwise, find a trustworthy car dealership that specializes in leasing used cars.
• Leasing the right car: Leasing a used car is generally cost-effective. However, it can also be expensive if you choose the wrong vehicle. If you lease a vehicle that is over three years old, you run the risk of dealing with several repairs in the future. You can mitigate the risk by narrowing your search to slightly used vehicles with a lower mileage.
• Lease period: If you are leasing a second-hand model for the very first time, strive to strike a good deal with the dealer. In this cases, choose a shorter lease period, probably less than a year. If you sign up for a longer period, let's say three years, you will be forced to stick to a car you don't like for the entire three-year period. That said, some used cars leases have an option for cancelation or vehicle swap, and some even have car subscription services you can try.
• Vehicle history: Research the vehicle warranty and history to minimize your risk, and establish whether or not the vehicle has been involved in an accident. On top of this, scrutinize the limits on miles as spelled out in the lease documents.
Leasing Considerations: New Cars
New cars are great, but they tend to be a little more expensive. Nevertheless, here's what you can expect when you lease a new car.
• Low Maintenance: If you lease for a shorter period (not more than 36 months), you will worry less about repair expenses since the car will be covered by the manufacturer's warranty. In some cases, the manufacturer provides free maintenance in the first few years.
• More Choices of Vehicles: The majority of dealers lease new vehicles rather than used one, so the chances are that you will more easily find the model you like when you go with new. But there are always exceptions to this rule.
Making the decision
Leasing a used car or new car are both safe and cost-effective options if you source it through a reliable dealer. However, you should meticulously check the car before signing the lease agreement. As you think about leasing your next car, take your time to understand what you will be paying for.