Is Used Car Leasing a Smart Option?
Why Lease a Used Car?
2015 new car sales hit record highs, saturating the market with pre-owned inventory. To make up for the disparity, manufacturers are offering leasing options for gently used cars. More are opting in on this trend as the need for a pre-owned market increases. Luxury carmakers are also partaking by offering reimbursements for repairs, regardless of warranty, in hopes to sway dealers into leasing used car fleets. Manufacturers may need to lease their gently used models, but why would anyone want to lease a used car?
Used Car Leasing Pros and Cons
Driving a new car every few years is one of the main selling points of leasing, so how could leasing a used vehicle have any benefit? While leasing is commonly associated with new, there are advantages to leasing used. Pre-owned vehicles have already overcome their greatest depreciation hit, decreasing difference between the residual and original value. Unlike new vehicles, you could actually benefit from low residuals through lower monthly payments. Normally, you would want a high residual value, but used vehicles are an exception because their starting price is already lower to being with.
Although it has its advantages, don’t rush into a used car lease just yet. Not all pre-owned vehicles are ideal for leasing. To make things simple, lease a vehicle with a Certified Pre-Owned warranty. You’ll decrease the likelihood of paying out of pocket for repair.
Which Used Cars to Lease?
Lexus has a history of thorough Certified Pre-Owned warranties, as well as a reputation for reliability. If Lexus isn’t your brand, Acura, Porsche, and BMW are also viable options. Non-luxury vehicles that have a reputation for holding their value are Toyota, Honda, Subaru, and GMC.
As the used car leasing market grows, offers will only become more competitive. If you’re considering leasing a used vehicle, check out our EZ Lease option for the lowest rates by any company on a standard new or used car lease.