Used-Car Lease: A Great Option for Saving Money on Car Lease
While leasing a car, you’ve two options – a new car and a used car. Yes, leasing a used car is also a small section of the secondhand car market. For those who are looking for saving money on car lease, used car lease is a great option with moderate payments and the capability to lease “certified” secondhand cars.
A car lease company like the car lease dr. in Brooklyn offers all the benefits on a used-car lease that they offer on a new car lease. These include relatively low payments and unproblematic return at the end of the term. Also, because most of the monthly payment of a leased vehicle goes towards depreciation, which is less severe, as the vehicle ages, monthly payments could be lower. However the financial risk a used car lease brings, can be significantly higher.
Risks
A major risk is the likeliness of service problems. The reliability data of Consumer Reports show that on an average, a 3-year old car has more than double as many problems as a one-year old car has. Keep in mind that any repairs you need to perform that are not covered by a warranty must be paid for by you although you don’t own the vehicle. This is the reason why it’s a good idea to buy a comprehensive bumper-to-bumper warranty for the entire term of car lease.
One more risk that comes with a used-car lease is the difficulty to predict what the car’s worth would be, when it’s, say, four years old. There is a high amount of variation in the four-year-old market. However, that knowledge is essential since your monthly payments depends on its supposed retained value. If the dealer sets it too low, you will have to pay higher than you should. If they set it too high, it offers them freedom to push up the initial price while providing what appears to be acceptable monthly payments.
Therefore, the most perfect cars to lease are those that excellently hold their value. These tend to be sports cars, luxury cars and certain SUVs. That’s why, used car leasing has become mostly the area of luxury makes, like Mercedes-Benz, Audi or Lexus.
Assuming Leases
You also have the option of assuming a lease, if you’re particularly looking for saving money. You don’t always have to go to car dealers for car leasing. You can find people who want to get out of a lease and are looking for someone like you who can take over the lease payments. You’ll find websites that act as brokers and look for a lease assumption and what’s on offer. Sometimes the original lease will offer a cash discount, which reduces the monthly payment on the car.
Assuming a lease offers you the benefit of saving the up-front fees, like a down payment and other fees. However, along with assuming the lease, you have to assume responsibilities too. For example, you may have to pay for any wear and tear or over-the-limit mileage charges at lease-end.
Used-car leasing can considerably save you money and allow you the fun of driving a car of your choice. So, the option is worth considering.
