Many people struggle with the decision to buy a new car, or lease one. But what you may not realize is that it's also possible to lease a used car. Leasing a used vehicle is an attractive option for drivers wanting an affordable alternative to get behind the wheel of a luxury sedan or SUV.
As with new car leasing, you need to do some research to help secure the best deal. First and foremost is price research.
Price research should be focused on initial market value and the estimated residual value, the vehicle's key figures. These figures can be harder to predict with used cars, as there are no factory-set sticker prices and residual percentages are determined by subjective current retail value. For this reason, it's important to find several value estimates, and find a median price. Visit local dealers for this information, or try online tools such as Cars.com and Edmunds.com. Another way to pin down a good estimate is to compare the used car lease with a lease on a new car of the same make and model. This will give you an overall picture of the differences between new and used car leases. Just like leasing a new car, a used car lease is more attractive when residual values depreciate the least. You will have a better chance of finding a bargain with a high-end, luxury vehicle that holds its value.
Next, it's important to verify the initial mileage and the overall condition of the vehicle. The maximum mileage on the used vehicle you choose should not exceed 12,000 miles a year. If the car is three years old with 50,000 miles on the odometer, you can bet it's probably not your best choice for a used vehicle lease. In addition to actual mileage, check for signs of excessive use, like worn seat fabric and damaged interior elements, worn pedal pads and a dirty engine, which can indicate poor maintenance or even an odometer roll-back. Even if the car is being marketed as certified, it's in your best interest to have it thoroughly inspected by a qualified mechanic you know and trust.
Gap coverage is a type of insurance offered on a new car lease that protects the driver against vehicle loss, damage or theft. This type of coverage is not usually offered on a used car lease. Automobile insurance policies will typically only cover what your car is worth at the time of loss, rather than what's owed on the lease. The difference can run into thousands of dollars. For your own peace of mind, arrange your own gap coverage before entering into a used car lease. You can make these arrangements directly with the dealer, or through an automobile insurance company.
If you've always wanted to drive a high-end car, but can't manage the high price payments, a used car lease can be just what you need to ride in high style.
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