By Edward Pacheco
In today’s difficult economic times there is definitely something to be said for leasing a used car as opposed to a new car. In short, leasing a used car will provide the buyer with an opportunity to get the new truck or sedan that they want without having to fork up a ton of money. Leasing used is something that has not been popular in the past, but it is slowly starting to become more relevant.
The reason: most of the time the dealership that gets a lease turned in will sell it outright as used or CPO.
Once the car is sold, the dealership stands to make a nice profit. However, leasing used cars has become more relevant because with the slow economy it is a way for these dealerships to move inventory off their lot (to make room for higher margin offerings) while still making a profit. The benefit for the buyer is that they get a car that’s like-new at a lower price than they could if they were buying (or leasing) new.
When leasing a used car you will be locked into to a contract that will last, in most cases, 36-months, just like a new car lease. Over the course of those months you are mostly paying for the depreciated value of the car. In other words, you are not paying for the whole price of the car, just the portion that you use. This is ideal for those who can’t find a car that fits them at their price point.