How To Be Smart Lessee For Used Car Leasing

How To Be Smart Lessee For Used Car
Leasing?
A majority of car deals are segregated into two broad categories: new, or used car purchases
and used or new car leases. When it comes to car leasing, consumers are more inclined
towards getting their hands on a brand new model rather than a pre-owned one. Used
car leasing is often overlooked by potential customers as everyone wants to lease a car that
is least used and boasts high functionality. Whether it is a new or old car model, the tag of
“used or pre-owned” makes it less popular among the lessees. Reliability, high-end
functionality, convenience, warranty are some of the criterions that play a significant role in
leasing a car and there are no possible reasons to assert that these standards cannot be met
by a used car.
How Does Used Car Leasing Work?
Used car leasing is a lesser known term amongst the customers and a reserved process among
the franchised dealers. According to the motor laws, cars available for leasing are certified
pre-owned (CPO) vehicles which must be less than 4 years old and show less than 48,000
miles on the odometer. Used car leasing follows the same regulations as its basic structure of
leasing. The lender decides the car ’s residual value and the final payable amount is
determined by the difference amount of car’s sales and residual value.
The lender then decides a money factor (interest rate) for the vehicle and includes in the
agreement. As the interest rates on used car loans are higher, the money factor on used

car leasing also tends to increase. Though the money factor for used cars is a tad bit higher,
it is further coupled with the lower sales price and rate of depreciation to maintain the
balance.
How To Be A Smart lessee?
Whether it is for acquiring a new or used car on lease, it all depends if you’re following the
right procedures to fetch yourself a fair deal. Below is the step-by-step process of used car
leasing to ensure a virtuous deal without getting scammed.
Pick a Brand That Offers Used Leases:
Prior to finding the franchise dealers for used car leasing, it is essential to determine the car
brand for leasing. Research and ascertain which automakers’ captive are financing used car
leases.

Find Franchised Dealers:
It is always better to go for franchised dealers in order to avoid any fraudulent practices and
eradicate the interference of any middlemen. Engaging in a deal with a franchised dealer
offers legal compliance and safety against the scams and frauds.
Get a Price Quote:
After finding the dealer who offers used cars on lease, ask for price quote. Negotiate a fair
price that suits your budget and fulfills the requirement. With a little research, you can also
calculate the estimated value beforehand to avoid the hassles while purchasing.
Have a Point of Comparison:
Used car leasing is all about being smart and updated. In order to effectively scrutinize the
car, it is necessary to compare its value and functionality with the other versions of the
models.
Although used car leasing is a not very popular among customers due to the uncertainty of
high-end performance, reliability, fuel efficiency, and several other deciding factors, it still is
a sought after way to purchase cars today. And a good purchase totally depends on customers
to be smart lessees and follow appropriate procedures prior to finalizing the deal. Whether it
is new or used car leasing, negotiating fairly, locating the franchised dealers and comparing
the quotes makes the leasing process a fair deal.