There are people who think that leasing a used car is less expensive than leasing a new car. What they really should be thinking about is whether leasing a used car makes sense—or if leasing a used car is even possible. So, can you lease a used car? Technically, the answer is “yes.” Some companies do lease used cars. However, these companies are few and far between. Most do not want to lease used cars because it makes pricing significantly more difficult. It’s much easier to predict the changing value of a car during its first three years than it is to predict its value in years four, five and six. Most car companies would prefer to avoid the problem of diminishing value as best as they can. Also, most car dealerships aren’t interested in stocking used cars for lease; it’s simply not a popular option for most of their customers. New cars are leased during the first three years of the cars life, meaning if the car needs repairs or maintenance, it’s covered by the warranty. If you lease a car outside the warranty, then those costs are your responsibility. And as the car ages, the likelihood that you’ll have to pay for repairs increases. Although you can find the occasional company who’s willing to lease used cars, it’s not advisable to do so. There are, however, better options available to leasing a used car. Here are three alternatives to consider:
A new car lease
Truth is, leasing a new car is going to cost you less overall than leasing a used one. A new car is still under warranty, which means you don’t have to worry about the cost to fix it. Also, new versions of car models are more energy efficient than older models, so you’ll save on gas as well. New cars are not only safer than their older counterparts, but each new model year is met with stricter safety regulations. You’ll potentially save more than dollars by leasing a new vehicle. You can also improve your credit score by leasing a new car. If you’re leasing because your credit isn’t good enough to get car financing with a reasonable interest rate, then leasing a new car is a good short-term plan that will give you access to transportation as well as access to better credit.
Finance a used car
If you want to drive a used car, you might as well buy it. By taking the time to shop around, you can get a significantly good deal on a used car. Whether you lease or buy a used car, you’ll still be responsible for repairs or maintenance. At least when you buy a used car, you can build equity and improve your credit by making your car payments on time. What’s more, buying a used car comes with the added benefit of time. So, research can tell you a lot more about it. Used cars have been on the road long enough where bloggers, journalists, and mechanics know how the car ages. When comparing car models, you have the advantage of knowing how the car’s life will unfold. Knowing this will help you avoid cars that are harder to care for as they age, saving you money in the long run.
Finance a new car
The third option is to finance a new car. In the end, it’s possible to save money by buying the newest model. New cars rarely need expensive repairs or maintenance in the beginning like many new cars do. They also come with a warranty that you can usually extend. This can also save you money. And, new cars come with the latest features, which benefit the owner beyond safety.