Looking to upgrade your ride while shopping on a budget? Used or certified pre-owned vehicles are an affordable alternative to buying new, but what are your options if you’re not yet ready to invest in a car and commit to a years-long financing contract? Used car leasing is the answer! Read on to learn more about how used car leasing works, and why it’s the best option for your budget.
How Does Used Car Leasing Work?
If you’ve ever leased a new car, used car leasing follows a similar process. To get started, you may need to pay an acquisition fee and make a down payment. Over the lease term, you’ll pay monthly payments based on the difference between the car’s purchase price (value at the time you sign the lease agreement) and the estimated residual value at the end of the lease. Your monthly payments will include a money factor, much like an interest rate on a loan.
At the end of the lease term, you’ll return the vehicle and pay any turn-in fees, plus any penalties if you’ve exceeded the lease’s wear-and-tear policy or mileage limits.
Benefits of a Used Car Lease
Several benefits apply to both leasing used and leasing new, but in many ways, leasing used is the better option. Advantages to leasing used include:
- Low payments. Whenever you lease a vehicle, the majority of the monthly payments you make go toward depreciation. Since cars depreciate fastest during their first two years on the road, there’s less of a depreciation gap to cover when you lease a pre-owned vehicle. You’ll also save on capitalized costs when you lease used rather than new.
- Coverage for major repairs. Some attractive used car leases offer great repair coverage for your peace of mind. The older a vehicle gets, the more likely it needs repairs, so this incentive can make or break the deal. Ask your used car leasing professionals for comprehensive breakdown or repair coverage as part of the deal, so you won’t get stuck paying for unexpected repairs.
- Like new car leasing, you have the freedom to bring back the vehicle and drive away with a different one when your term ends. If you’ve negotiated a favorable lease agreement, you’ve stayed under mileage limits and you’ve taken good care of the vehicle, you should owe nothing and be free to either buy the vehicle or lease a different one.
Ready to enjoy a new-to-you ride? Used car leasing is the most affordable option that gives you more car for your money! With lower payments, you can get the car of your dreams, with all the features you want, for the best possible price. The used car leasing financing professionals at Drivrz Financial are here to help you get behind the wheel of your dream car. Contact us today and we’ll connect you with a dealer near you!