Car prices are on the rise, and dealers are adding markups, or “market adjustments” to the already-high suggested retail prices, just because they can. Did you know there’s a way to go around these steep markups? Used car leasing is an affordable, convenient alternative to leasing new or buying a vehicle outright. Here’s what you need to know about leasing used.
Owning a Vehicle Is More Expensive Than Ever
Due to increased demand for both new and used vehicles, dealers are adding extra fees, called “dealer markups” to the price of vehicles. These extra costs aren’t a result of the cost of the car going up—it’s really up to the dealer to get what they can get for a vehicle. With dealerships experiencing lower-than-normal inventory, they can often get those high prices they’re asking for.
You can avoid these markups by leasing used. When you lease used, the monthly payments go toward depreciation on the vehicle that occurs during the term of your lease. Since most depreciation occurs in the first few years of a vehicle’s life, you avoid paying for significant depreciation and enjoy lower monthly payments when you lease used.
Is It a Good Idea to Lease a Used Car?
Not sure if leasing used is right for you? The low monthly payments you’ll enjoy when you lease used are just one of the perks. Some of the major benefits include:
- More car for your money: When you lease a car that’s a few years old, you’ll be able to afford a nicer ride than you thought you could. Whether you upgrade to a nicer trim level or you choose a large SUV over a crossover, your dollar goes further when you lease used.
- Lower insurance: Since a used vehicle’s value is lower than that of a new car, you’ll pay lower insurance premiums when you lease used rather than new. Insurance premiums are based on the amount of the depreciated value of the vehicle and the cost to replace it. Since most of the depreciation has already occurred when you lease used, it follows that your insurance payments will be lower.
- Worry-free maintenance: One of the major advantages of leasing used is that many attractive used car leases offer significant repair coverage. As you negotiate lease terms with your dealer, ask for comprehensive breakdown or repair coverage, so you’ll be off the hook should unexpected repairs arise.
Leasing Used Is the Affordable Solution
Want to get behind the wheel of a new-to-you ride for a fraction of the cost of buying a vehicle outright? Used car leasing gives you the best bang for your buck, especially when you work with the used car leasing professionals at Drivrz Financial. Give us a call today at (800) 436-0476 and we’ll connect you to a used car leasing dealer near you!