You're dreaming of driving a high end car, but can't manage the high price. Did you know that you have the option of leasing a used car? A used vehicle lease can be a great option for drivers who need an affordable alternative to driving a big ticket truck or luxury sedan.
As with new car leasing, you need to do some research to help secure the best deal. First and foremost is price research.
When you research price, focus on the initial market value and the estimated residual value. These are the vehicle's key figures. It's harder to predict these figures with used cars, because there are no pre-determined factory sticker prices and the residual percentages are determined by the subjective current retail value. That's why it's important to gather several value estimates and then find a median price. You can find this information by visiting local dealers or searching online at sites like cars.com and edmunds.com.
You can also find a good estimate by comparing the used car lease with an available lease on a new vehicle of the same make and model. This information provides an overall picture of the differences between the new and used car leases. Just like leasing a new car, a used car lease will be more attractive when the residual values are expected to depreciate the least. Your chance of finding a bargain is better with a high end, luxury vehicle that will hold 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.
Once you've leased a used vehicle, you'll need to insure it. Gap coverage is a type of insurance offered on new car leases, and designed to protect the driver against vehicle loss, damage and theft. This type of coverage is not usually offered on a used car lease, and your policy may cover only what your car is worth at the time of loss, rather than what's owed on the lease. As you can imagine, the difference can run into thousands of dollars.
Try to arrange your own gap insurance on the used car lease, for your own peace of mind. These arrangements can be made directly with the dealer or through an automobile insurance company.
If you've been dreaming of driving a high end car, but can't manage the high monthly payments, a used car lease can be just what you need to cruise in high style.
Writer Michael Trusthold is an author for a variety of popular automotive web sites, on used car values and family road trip topics. You can get a unique content version of this article.
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