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.
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.
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<strong>How</strong> <strong>To</strong> <strong>Be</strong> <strong>Smart</strong> <strong>Lessee</strong> <strong>For</strong> <strong>Used</strong> <strong>Car</strong><br />
<strong>Leasing</strong>?<br />
A majority of car deals are segregated into two broad categories: new, or used car purchases<br />
and used or new car leases. When it comes to car leasing, consumers are more inclined<br />
towards getting their hands on a brand new model rather than a pre-owned one. <strong>Used</strong><br />
car leasing is often overlooked by potential customers as everyone wants to lease a car that<br />
is least used and boasts high functionality. Whether it is a new or old car model, the tag of<br />
“used or pre-owned” makes it less popular among the lessees. Reliability, high-end<br />
functionality, convenience, warranty are some of the criterions that play a significant role in<br />
leasing a car and there are no possible reasons to assert that these standards cannot be met<br />
by a used car.<br />
<strong>How</strong> Does <strong>Used</strong> <strong>Car</strong> <strong>Leasing</strong> Work?<br />
<strong>Used</strong> car leasing is a lesser known term amongst the customers and a reserved process among<br />
the franchised dealers. According to the motor laws, cars available for leasing are certified<br />
pre-owned (CPO) vehicles which must be less than 4 years old and show less than 48,000<br />
miles on the odometer. <strong>Used</strong> car leasing follows the same regulations as its basic structure of<br />
leasing. The lender decides the car ’s residual value and the final payable amount is<br />
determined by the difference amount of car’s sales and residual value.<br />
The lender then decides a money factor (interest rate) for the vehicle and includes in the<br />
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,<br />
it is further coupled with the lower sales price and rate of depreciation to maintain the<br />
balance.<br />
<strong>How</strong> <strong>To</strong> <strong>Be</strong> A <strong>Smart</strong> lessee?<br />
Whether it is for acquiring a new or used car on lease, it all depends if you’re following the<br />
right procedures to fetch yourself a fair deal. <strong>Be</strong>low is the step-by-step process of used car<br />
leasing to ensure a virtuous deal without getting scammed.<br />
Pick a Brand That Offers <strong>Used</strong> Leases:<br />
Prior to finding the franchise dealers for used car leasing, it is essential to determine the car<br />
brand for leasing. Research and ascertain which automakers’ captive are financing used car<br />
leases.
Find Franchised Dealers:<br />
It is always better to go for franchised dealers in order to avoid any fraudulent practices and<br />
eradicate the interference of any middlemen. Engaging in a deal with a franchised dealer<br />
offers legal compliance and safety against the scams and frauds.<br />
Get a Price Quote:<br />
After finding the dealer who offers used cars on lease, ask for price quote. Negotiate a fair<br />
price that suits your budget and fulfills the requirement. With a little research, you can also<br />
calculate the estimated value beforehand to avoid the hassles while purchasing.<br />
Have a Point of Comparison:<br />
<strong>Used</strong> car leasing is all about being smart and updated. In order to effectively scrutinize the<br />
car, it is necessary to compare its value and functionality with the other versions of the<br />
models.<br />
Although used car leasing is a not very popular among customers due to the uncertainty of<br />
high-end performance, reliability, fuel efficiency, and several other deciding factors, it still is<br />
a sought after way to purchase cars today. And a good purchase totally depends on customers<br />
to be smart lessees and follow appropriate procedures prior to finalizing the deal. Whether it<br />
is new or used car leasing, negotiating fairly, locating the franchised dealers and comparing<br />
the quotes makes the leasing process a fair deal.