Is It Better to Lease or Finance a Used Car?

August 17, 2022 | Used Leasing

In the market for a used car? While you may think that financing is your best option when it comes to securing a new-to-you ride, leasing a used car is a better alternative. Read on to learn why you should lease, instead of finance, a used car.

What Is Used Car Leasing and What Are the Benefits?

Leasing a used car works much the same as leasing a new one. You agree to take possession of a vehicle for a fixed term (usually two years) for a fixed amount of money which is paid to the leasing company as monthly payments. You’ll also agree on the number of miles you can drive per year. When the lease term is up, you’ll return the car to the owner, unlike financing, where you pay monthly payments and own the car once the loan is paid off. So, which option is best? Here’s why it’s better to lease, rather than finance, a used car:

  • Lower monthly payment: Why pay more for the same car if you don’t have to? When you lease a used car, you’re only paying for the depreciation of the vehicle as you use it. Since most of the depreciation has already occurred before you take possession, you’ll pay much less per month than you would if you finance the vehicle. You also don’t have to pay interest on the vehicle like you would when you finance, saving you even more money.
  • Better car for your money: Since you pay less to lease used than to finance, you can drive away with a better car than you probably thought you could afford. When you lease used, you’re getting a model that’s less than a few years old, which means you can get behind the wheel of a vehicle with all the infotainment and safety features you’re looking for to make every drive fun and comfortable.
  • Coverage for major repairs: When you finance a used car, you’re on the hook for any repairs it may need while you own the vehicle. Leasing used provides a significant advantage—you don’t have to cover the cost of expensive major repairs. Negotiate with your used car leasing dealer and include repair coverage in the terms of your agreement. You’ll drive away with peace of mind that you’ll never be hit with a significant repair bill as you use the vehicle.

Leasing a Used Car Is the Affordable Alternative to Financing

Leasing a used car is more affordable and flexible than financing. There’s no better way to get the car of your dreams at a price that fits your budget. Need help finding a dealer near you who offers used car leasing? Reach out to the used car leasing financing experts at Drivrz Financial today at (800) 436-0476, and we’ll connect you with a dealer near you!

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