A car lease is an option for those unwilling to commit to owning a car. It is like a long-term rental but with lower costs. This is often available for brand new vehicles, but what if you aren’t looking for one? Can you get your hand on leasing a used car and save some money? This article explains the peculiarities of used car leasing.
The main hurdle to leasing a used car is its limited availability. Since leasing a used car drops in profitability, it is usually offered in luxury brand dealerships on limited models. If you do find a used car lease, you might have a good deal. However, you need to understand some of the drawbacks as well.
As any used car loses its value with depreciation, you can win in the following aspects if you decide to lease a used vehicle:
Lower monthly payments: It is an obvious advantage that can make a difference if you can’t afford to lease a brand new car.
Higher approval chances: If your credit situation does not let you lease a brand new vehicle, you have more chances of approval from a dealer.
Luxury at less cost: The lease allows you to use a vehicle without committing to ownership, so it may be a great option for those willing to drive a used luxury vehicle, like BMW or Mercedes, for example. This is the kind of good for those who like to say that a BMW is a BMW, even if it comes pre-owned.
The process is the same as with leasing a brand new car:
-The lease provider calculates the leased portion of the car sale value by subtracting its expected value at the end of the lease.
-You will need to complete the credit application to get approved, which will determine the rate and the terms.
-You will normally have the option to return the car or keep it at extra costs at the end of the lease.
While normally you need good credit to lease a car, going for a used car lease might give better chances of approval. But in such cases, dealers will often want you to pay bi-weekly or even weekly.
Leasing a used car is rare as the typical subjects of a lease are brand new cars. The situation is much more explored in the car financing world. If you think you can’t afford to finance a used car, you may be mistaken – financing a car can be a more beneficial choice, especially considering the following:
-Higher (than with lease) chances of approval for bad credit customers
-Options for no down payment
-Ownership, which is normally cheaper than buying a car at the end of a lease
Apply with CarEvo and get professional help with finding a car near you, getting approved (bad credit included), and securing the deal for you.