How Does Used Car Leasing Work?
The process to lease a used car is a lot like leasing a new car. The way it works is the customer finances the difference in the sales price of the vehicle and the full value of the car. The total cost is determined by the lender or a third party that is chosen by the lender. This value is what the lender is saying the car will be worth once the lease expires. Here is where there is a difference in a new car and a used one. Most of the time, the full value is determined by the manufacturer, and it's determined by percentage points, while the model and mileage amount set used car value. Much like when you lease a new car, the consumer has the right to refuse to purchase the vehicle that they have leased when the terms expire. Here is where a lease can be a significant benefit because the value could be set to low, and you might be able to purchase the vehicle at a much lower rate.
What are the Benefits of Leasing a Used Car?
When you set out on any car buying venture, it's crucial to weigh the ''leasing a car pros and cons'. Every car buyer should know what the costs will be when they are buying or leasing a vehicle before they commit to a lease. Of course, there are benefits of used car leasing.
Low Monthly Payment: For starters, you will typically get a low monthly payment. Most used vehicles have a lower selling price then their newer counterparts, and because of this, its easy to avoid the new-car depreciation curve. These two elements combine to lower your monthly payment, even if there is a higher money factor.
End of Lease Options: Second, seeing as how used cars are worthless, it makes them good candidates for a buyout once the lease concludes. Be sure to do your due diligence by checking market prices and factoring in maintenance and future warranty costs that come with buying an older vehicle.
Warranties: Also, used cars tend to have powertrains warranties that go up to 100,000 miles. This is a massive benefit for shoppers who plan on buying the vehicle once the lease ends.
Lower Insurance than New: Finally, and perhaps best of all, because of a used car's value is going to be less than a brand new car, your auto insurance payments may be less.
Lease Your Used Car from Easterns Automotive
There are benefits to buying and leasing a vehicle, so it is entirely up to you to decide which is best. Of course, the finance team here at Easterns is standing by to help guide your through the entire process, as well as present each of your options in a clear way. With all the benefits of leasing a pre-owned vehicle, it is certainly a viable option many have not thought of before. If you are shopping for your next used vehicle in the Maryland-Virginia-DC region, consider a lease today!