Leasing Used Cars

Leasing a used car is set up almost identically to leasing a new car. The basic structure is the lessee (customer) is effectively financing the difference in the sales price of the vehicle and the residual value of the car. The residual values are determined by the lender, or by a third party chosen by the lender. This value is what the lender is estimating the car will be worth at the end of the term of the lease. This is where there is a difference in new car and used, the residual values in new cars are set by the Manufacture and are percentage point based and used cars the values are specific to the model and mileage amount.

Just like in new car leasing the customer always has the first right of refusal to purchase the vehicle he or she has leased at the end of the term at the set residual value. This is a moment where a lease can be a huge benefit because it is possible the residual was set too low, and the customer may be able to purchase the car for far below market value.

It is important to consider all of the pros and cons of leasing and buying versus the cost difference between leasing a used car and buying a used car. Every customer should know what the costs will be on buying a vehicle through traditional financing before committing to a lease. This applies to both new and used car leasing, but is more important in the used space, because of the swing in residual value based on a used car’s existing mileage at time of purchase. Easterns Automotive is pleased to do what we can to help you figure out if leasing is the right fit for you. Below you can watch our video on the subject, and also compare the pros and cons to leasing vs buying.

Whether you’re better off buying or leasing a used vehicle depends on your current financial situation, the cost of the car you want and how long you think you’ll want to drive the vehicle. Buying or leasing a pre-owned vehicle is always a good idea, especially the certified, low-mileage pre-owned cars, trucks and SUVs offered by Easterns Automotive. You can call our team at 877-867-0641 to learn more about the benefits of leasing.

There’s a reason you don’t see many 18-year-old drivers leasing cars. It generally requires a fairly good credit score, and most young people have little to no credit history. Easterns Automotive is unique in that we help people in all types of credit situations drive off the lot in great new vehicles. If you’re worried your lack of credit history or poor credit will prevent you from getting a high-quality, fuel-efficient vehicle, contact our team.

Yes, you can put the proceeds of your trade-in toward your initial lease payment. Doing so may also allow you to lease a great, recent model-year vehicle with a lower monthly payment. Trade-in-to-lease allows many drivers to get behind the wheel of a vehicle that might otherwise be outside of their price range.

In most cases, only certified pre-owned vehicles that were released within the last four years and have 48,000 miles or fewer will be eligible for leasing. Leasing a used car allows auto shoppers to get a substantial monthly discount on a car that’s still relatively new and has well over 100,000 miles of life left in it. Leasing used means the previous owner went ahead and paid most of the vehicle’s depreciation for you. At the end of your lease, you might be surprised to find the buyout price is actually lower than what the car would normally be selling for on the market.

Easterns Automotive is happy to offer flexible payment options to drivers in Baltimore, Washington D.C. and throughout Maryland and Virginia. If you think leasing a used car is the right option for you, we encourage you to visit your nearest Easterns dealership location.