Finding your next car in Texas’s current used car market can feel like it’s taking forever. You may have even been considering leasing a used car or even renting a new one as an option. After all, the used car market is astronomical and ultimately seller-friendly in the current state after the pandemic.
But that doesn’t mean that your search for your next used or new car has to be in vain. At Drivrz Financial, we understand how difficult it is to find the perfect vehicle to fit your life and needs. This is why we’ve put together this mini-guide to leasing a used vehicle vs. renting a new car.
There are pros and cons of both options, and today, we’re going to look at some of the more significant ones of each.
Leasing a used vehicle provides a few significant benefits over renting a new car. One of the most important benefits is the fact that your monthly payments are going to be lower. This is because when you lease any car, used or new, you’re only making “rental” payments toward the vehicle’s depreciation over the time you’re leasing it. And when it comes to used cars, you can most definitely get more bang for your buck with lower payments because the depreciation isn’t as significant on a used vehicle.
Some of the other pros of leasing a used car are:
- Lower insurance payments.
- You don’t have to sell the car when you’re done. You can trade it in for an upgrade if you want.
- Lower upfront money is needed to lease.
Renting a new vehicle is an option that many people choose to do, and while it is very similar to leasing a car, there are some different benefits as well. Renting a new car allows you the luxury of getting into a car you couldn’t usually afford if you were buying or leasing it outright. Similar to leasing a used car, your monthly payments on a rental may be lower depending on the type of new car you’re renting. And you don’t have to buy the car when you’re no longer in need of it. You simply turn it in and go.
Other pros are:
- No down payment is needed.
- Cheaper than buying new.
While leasing a used vehicle has many great benefits, there are still some downsides to leasing used. Here are some of them:
- There can be mileage limits per year.
- Contracts can be hard to get out of.
- You don’t make money in the end by selling the vehicle.
Renting a new car has significant downsides for your bottom line, and it impacts many other areas. For instance, your insurance for a rental car is far higher than the rates you’ll pay on a used car lease. This is because you need to have coverage that will keep you protected if the vehicle is totaled, and the rental company may go after you to be reimbursed for the time they cannot rent the car to other customers.
Some of the other cons of renting a new car are:
- Fees and penalties are standard if you don’t take care of the maintenance, make a late payment, and especially when you go over your mileage.
- There are both monthly and yearly mileage limits you must stay under, and even sometimes weekly limits.
- You’re paying higher monthly payments to cover the rental costs from the rental company overhead. They have to make money somehow.
If you’re uncertain which option is best for your needs when searching for the next great car to drive around Texas, this mini-guide should help you better understand your options. Picking the perfect car doesn’t have to be overwhelming, and neither does getting the right financing for your needs. With Drivrz Financial, we’re here to simplify your car search by helping you get the right financing for your car!