Why Leasing a Used Car Might Be the Best Option for You
Every driver’s financial situation is unique, especially right now. COVID-19 has been extraordinarily tough on many families. Maybe you’ve had trouble finding work, or one of the normal wage earners in your household has had to forgo regular employment to stay home with your kids during the day.
There are a nearly endless number of reasons for people to be on a tight budget, but many of those reasons won’t prevent you from qualifying for pre-owned vehicle financing.
At Easterns Automotive, helping people in the Baltimore and Washington, D.C. metro areas qualify for great financing is one of the things that sets us apart from the competition.
However, getting a loan and purchasing a used car, truck or SUV may not be your only option. Another service that sets Easterns Automotive apart is our pre-owned vehicle leasing program.
When Might Leasing Be the Right Option for You?
Leasing is often the ideal solution for a certain type of driver, but there are some important restrictions to keep in mind. Depending on your transportation needs, these restrictions may not be disadvantages. Used car leases are:
- Recommended for drivers who just need a vehicle to commute around the Baltimore or D.C. metro areas because you’ll be limited on the number of miles you can put on the vehicle without incurring extra charges
- Ideal if you plan on getting a different pre-owned or new vehicle within the next few years
- Often cheaper, with monthly payments that are lower than a car loan
For people who just need a vehicle to run errands, get to school or commute to and from work, the mile restrictions generally aren’t an issue. If your job requires frequent commutes out of the metro area or out of state – or your family loves road trips – maybe leasing isn’t the best option.
The limited timespan of a lease makes it kind of like a long-term rental car. You can’t make modifications to the vehicle and there may be restrictions on how you can use your leased car or truck, but those restrictions aren’t a problem for many city commuters who are just looking for a reliable vehicle for local transportation.
You won’t be building equity in a leased vehicle the same way you would if you purchase the vehicle with financing. However, lessees do usually get a buyout offer at the end of their lease term.
If you’ve been happy with your leased pre-owned vehicle and you want to keep it at the end of your term, you can choose to purchase the vehicle for its dealership value minus the depreciation you’ve paid each month on your lease payments. The process is a little different than building equity through monthly car loan payments, but the end result is similar.
Why Leasing Could End with a Great Vehicle Purchase Opportunity
There’s a uniquely beneficial quirk when leasing a used vehicle if you do choose to take the buyout option at the end of your lease term.
Monthly lease payments, whether the car is new or used, are derived from a calculation based on the vehicle’s valuation. New car valuations are relatively static and generally dictated by the dealership and manufacturer.
Used vehicle valuations are a little different. In some cases, a lender may undervalue a reliable pre-owned vehicle. You might end up leasing a great car for a lower monthly rate than you’d pay with financing. Then, at the end of your lease, you’ll get a buyout option that may be well below the vehicle’s market value.
Can You Lease with No Credit or Bad Credit?
At Easterns Automotive we work with more than 30 car loan lenders to find workable financing options for drivers with all types of credit situations. We take pride in our flexible terms and our ability to find solutions for people with poor credit or no credit history.
If you’re concerned you may not qualify for an auto loan or a pre-owned vehicle lease, call us. You might be pleasantly surprised by some of the advantageous rates and terms we can help you find.
Find Out if Leasing a Used Vehicle in Maryland or Virginia Is the Best Option for You
If you need a replacement vehicle to commute around the city but aren’t sure you want or would qualify for a used car loan, leasing may be a great alternative. Easterns Automotive Group works with people in all types of financial situations to get them in reliable, high-quality pre-owned vehicles.
Don’t hesitate to give us a call at (877) 867-1357 or visit one of our eight Virginia and Maryland locations in Washington DC, Baltimore or Frederick.