3 Things to Know Before Leasing a Used Car

3 Things to Know Before Leasing a Used Car

In 2019, 31 percent of new vehicles were leased instead of purchased outright.

If you’re in the market for a new vehicle, you may want to consider leasing a vehicle. Leasing is very different than buying a vehicle, but it may allow you to drive the vehicle of your dreams if you don’t qualify for traditional financing. In addition, leasing allows you to upgrade your vehicle frequently when your lease expires instead of owning a vehicle for a long period of time.

Keep reading to learn three important things you should know before leasing a used car.

1. Lower Payments, But No Ownership

If you’re wondering how to lease a used car, the good news is that you don’t need a lot of money down.

Buying a vehicle typically requires a large down payment, but with leasing, you’ll just have to pay an acquisition fee. Monthly leasing payments are also traditionally lower than financing a purchase. So you’ll have lower up-front costs and lower monthly costs.

There is a catch to the lower cost though — at the end of the lease, you don’t own the vehicle. Instead, think of it as if you’re renting the vehicle. When the leasing term ends, you can turn the vehicle in for a new lease or choose to purchase the vehicle.

2. You May Be Responsible for Maintenance, Repairs

Since a leased vehicle technically still belongs to the dealer, you are responsible to keep up with vehicle maintenance and repairs.

Some dealers will offer you complimentary oil changes or tire rotations to help with the upkeep. And, if the vehicle is new enough to be under warranty, you’ll have that protection for certain repairs. But, anything else will be your responsibility.

If after leasing your vehicle, you find that the vehicle repairs keep adding up and the vehicle’s condition is not as promised, you may be eligible to seek legal action. Discover more about your legal rights when it comes to leasing a used car with problems before signing any contracts.

3. There Is a Mileage Allowance

One of the biggest tips for leasing a car is to make sure you understand the terms of your lease. One of the more common terms is the mileage allowance.

When you lease a vehicle, you are only allowed to drive the vehicle a certain number of miles. You can pay a higher monthly payment in order to get a higher mileage allowance. But, if you go over your mileage allowance, you’ll be charged a fee at the end of the lease per mile that you are over.

Is Leasing a Used Car Right for You?

After reading this article, hopefully, you have a better idea about if leasing a used car is right for you.

If you’re looking for something with a lower monthly payment than buying a vehicle, leasing is a good option. Keep in mind that to be in compliance with your leasing agreement, you need to keep you with the vehicle’s maintenance and repairs. Finally, keep in mind that vehicle leases come with mileage allowances so you’ll need to keep track of how much you drive.

Know that you’ve decided on how you want to purchase your vehicle, you need to find the perfect vehicle. Browse the rest of this site to find out which model or brand of vehicle best fits your needs.