Are you in the market for an upgrade to your old car with all the miles and wear and tear you’ve been putting on it for the last few years? You may find yourself searching for the right used car, truck, or SUV for your needs and discover that sticker shock is the new reality of the car market across the country.
These high sticker prices on both new and used vehicles can leave you wondering how you’re going to afford the car you want without having to settle for something with fewer features and inadequate driving experience. From financing the vehicle with a bank or dealership financing, leasing it new, or leasing it used, you want to know that you’re getting the most car, features, and creature comforts for your money.
That’s exactly what the used car leasing financing professionals at Drivrz Financial wanted to do a quick comparison between leasing a used car vs. leasing a new car and why leasing used is the way to go for all your car dreams.
Leasing A Used Car Vs. Leasing A New Car
We’re going to look at a few different elements of leasing a car, whether used or new, to help give you an expert look at which makes the most sense for your money. And when you see that used car leasing is the best choice, hands down, be sure to call the used car leasing financing pros at Drivrz Financial for all your financing needs.
Monthly Payments
Whether you’re leasing a new or used car, the monthly payments that you’re paying per your lease contract are based on the depreciation that occurs on the car during the term of your lease. Every car you lease new has a massive drop in value the moment you get behind the wheel and drive it off the lot for the first time. And while your new lease terms will typically be 24 to 36 months in length, for any car, truck, or SUV, those first 2-3 years is where the most depreciation occurs. In turn, your monthly payments could be up to over $1,000 a month depending on the type of car you lease, especially if you’re looking for a luxury car.
But the good news is that when you lease a used vehicle, the significant depreciation has already happened, so you’re able to have lower monthly payments on an even nicer car than you thought you could initially afford.
Winner: Leasing a used car.
Insurance Premiums
For the same reason that leasing a new vehicle comes with higher monthly payments, your insurance premiums are much higher. This is because your insurance premiums are based on the amount of money it would take to cover the gap between the depreciated value of your vehicle and the cost to replace it, so the more depreciation, the higher your monthly insurance payments.
However, with lower depreciation on a used car, truck, or SUV, you can save on insurance premiums and invest that money back into your dream car or other fun things around your home.
Winner: Leasing a used car.
Features & Technology
No matter what type of car you’re searching for, we know that you want to be able to have all the high-tech driver safety and assistance features as well as driving performance and experience you can for your money. Leasing a new car means you’re going to get the best of the best when it comes to technology and driving experience, but as we’ve already discussed, it comes at an expensive cost to you every month.
One of the best parts of used car leasing is that you’re able to get all the same standard safety and driving assistance technology, infotainment, and driving upgrades without having to pay the premium price. In addition, carmakers are continually upgrading their infotainment and driving technology every couple of years, so even something that’s two years old has brand-new standard technology in it.
Winner: Leasing a used car.
Quick Breakdown
As you can see from this head-to-head comparison between leasing a new car vs. leasing a used car, the clear-cut winner is choosing a used car to lease. Here’s a quick breakdown of the ways that used car leasing blows leasing a new car out of the water:
- Lower monthly payments for the same high-tech features.
- Lower insurance premiums during the term of your lease.
- Higher-end, luxury cars are more affordable.
- Less money upfront.
One of the best ways to get behind the wheel of your dream car is to find the same model on the used market. And when you do, be sure that you call the used car leasing financing specialists at Drivrz Financial at 1-800-436-0476! We have the financing you deserve to make your car buying experience as stress-free as possible!
