BUYER’S GUIDE: Used Car Leasing Tips

One of the advantages of fresh car leasing is being able to get into a fresh vehicle for a lower price. The appeal is having the latest bells and whistles without the major financial commitment of a fresh car loan.

Yet there’s a growing trend, and it’s value based, towards used car leasing. The idea is to get late-model used cars – sans the latest gee-whiz technology – at a lower price.

There’s a fresh survey out by Swapalease.com, which specializes in getting people out of fresh car leases by exchanging in people who want to accomplish the lease terms. Its survey of Two,500 drivers found 78.7 percent would consider a deal on a used lease. On the spin side, seventy four percent of two hundred fifty dealers surveyed indicated used lease offers may help, or undoubtedly would help budge the influx of leases coming back onto their lots.

What should you pay for a used car lease?

Those drivers want deep discounts on their leases. Swapalease said seventy five percent would expect to pay inbetween twenty to thirty five percent lower than the original payment on the same car as a fresh vehicle.

More specifically, most survey respondents would expect a BMW three Series originally priced at $400 per month, to then be priced at $250 or $275 monthly as a three-year-old lease.

Is that the right price? What you need to do to determine the right price for your used car is determine what it cost fresh, what its depreciation was when you embarked leasing it, and what its depreciation will be when you turn it in.

For argument’s sake, let’s assume most people would lease a used car for two years. After five years, a used car is worth forty percent of its original value. A BMW three series worth $35,000 fresh would be worth $20,300 after three years and $14,000 after five years.

To cover that depreciation, approximately, the dealer would want to recoup that $6,300 difference in twenty four payments of $262.50 but dealers are in it to make a buck and to recoup other costs associated with the car. In this case, add fifteen percent to the payment and you’re in the right neighborhood for what your used car lease is going to be.

However, just don’t lodge for what the dealer tells you the car is worth. Do your homework at BestRide’s used car valuation contraption powered by Kelley Blue Book. Reminisce, you’re a frugal buyer. There’s no need to pay extra for technology you don’t want. Don’t let it inflate the value of the used car you want to lease.

Bargain for a price somewhere inbetween the certified pre-owned value and the standard dealer price. Attempt splitting the difference to see if the dealer will accept your suggest. Reminisce, when it comes to leasing, either fresh or used, you need to know the car’s value.

What used cars will be popular for leasing?

An interesting takeaway from the survey is how different used car tastes emerge to be from fresh car tastes. People desire the following used cars:

Of that list, only the Jeep Cherokee cracks the top twenty vehicles sold in 2015, according to the Wall Street Journal. Used car leasers indeed are different from fresh car buyers.

Used car dealers are different, partly, from used car leasers. Here is the list of which vehicles used car dealers are willing to cut deals on for used car leasing:

Cadillac CTS; and,

Notice a similarity? They are all sedans, which are sales death right now because most American consumers want crossovers. The Cadillac CTS is the only vehicle common to both lists, which is excellent news if you’re in the market to lease one.

Why used car leasing is good for dealers

Much like certified pre-owned used cars helped keep the lights on at fresh car dealerships during the recession, the uptick in used car leasing seems to be coming at a good time. According to the Auto Request Index put out by TechnoMetrica Market Intelligence, there is going to be what it terms “a continued deceleration in momentum for vehicle purchase intent among U.S. consumers.” In the next three months, the percent of people intending to buy or lease a fresh car will dip to fifteen percent.

When leasing a used car is good for you

Do you like a good value in expensive thing? Get bored lightly with the fucktoys you have? Like status but at a lower price tag?

Consider used car leasing to be the ideal fit for you. Unless you lease a used car that has just gone through a major revamp like the two thousand fourteen Chevrolet Impala (which would be a brilliant used car to lease) vs. the two thousand twelve Chevrolet Impala. Two cars could not be more different (and the two thousand twelve Impala was a lousy police car according to the Michigan State Police).

Leasing a used car is also good for you if it comes certified pre-owned. Then you are getting a good used car at a good value and you shouldn’t have to worry about maintenance because that is a major issue as discussed below.

When leasing a used car is bad for you

Leasing a used car could be bad for you if maintenance is not covered. It’s just assumed it is on fresh cars when leased because all warranties cover the very first three years or 36,000 miles. That typically covers any lease terms.

However, things embark to get tricky with used cars being leased. You need to define exactly what maintenance is being covered. According to Swapalease, only 21.1 percent of dealers said they feel warranty issues are significant to shoppers. However, 95.Trio percent of drivers said they would expect a warranty to be suggested.

Only one in five dealers (unless they read this article) will bring up warranties with you. It is going to be your job to get everything in writing.

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