• Pros and Cons of Used Car Leasing

    If you are looking for used car leasing deals, it is important to know the positives and negatives that these type of deals provide. As with many car deals, there are both sides to the story. Knowing this information first can help you make a smarter consumer decision for your next car lease.

    Pros

    • Often times on a lease, no down payment is required. Sometimes there is a small down payment, but it is nowhere near the amount that a new car purchase would require. No down payments are attractive options since you do not need to come up with a large chunk of cash at a specified time.
    • When you lease a used car, you really do not have to deal with the car depreciating. Since you technically do not own the car, you do not have to worry about depreciation. That is for the car dealer to assume, not you. Depreciation is a problem when you buy new cars since once you drive them, they depreciate greatly. 
    • Getting a used car on a lease means that you can also go the certified pre-owned route. These are the best used cars as they have to go through testing in order to qualify. Certified cars are in great working shape, and are a reliable used car option. 
    • You also get a warranty when buying a used car on a lease. The manufacturer still owns it and is responsible as well, so they offer a warranty. You won’t have to worry about large maintenance bills as they are normally covered.

    Cons

    • As there are pros, there are also cons. First, leasing a car normally comes with an annual mileage allowance. What this means is that you have a certain mileage you can go, and if there is any excess mileage on the car when you go to return it, you may have to pay a penalty or fee for using your car too much. These mileage allowances are usually the average amount of miles, so for a three year lease, it would be around 36,000 miles. 
    • Since you do not own the car, you need to keep the car in good working condition, as well as in good aesthetic shape. Scratches, dings and other damages will be your problem, and you will need to have them fixed unless you want a hefty penalty when you turn the car back in.
    • Leasing usually isn’t the best long term financial decision, buying the car outright is. Once the lease term is up, you have to give up your car. In essence, you rented the car for three years, and have nothing to show for it. If you bought the car, you may only have around half of it paid for, but at least you have put some equity into it and can keep it.
    • If you can’t pay your lease, you will be in for some large fees and penalties. These may be due at one time, and can be several thousands.
    • If you lease a car, you cannot customize the car in any way, and you are stuck with how it looks.