Used Car Lease Tips

Many people struggle with the decision to buy a new car, or lease one. But what you may not realize is that it's also possible to lease a used car. Leasing a used vehicle is an attractive option for drivers wanting an affordable alternative to get behind the wheel of a luxury sedan or SUV.

Leasing any vehicle, new or used, can be a complicated procedure, so do some homework to help you find the best deal. Begin with price research.

Your price research should be focused on the vehicle's key figures: the initial market value, and the estimated residual value. It's a little harder to determine these figures on used cars, because there are no factory-set sticker prices and the residual percentages are determined by subjective current retail value. For this reason, it's important to find several estimates and then determine a median value. You can find the information you need online at sites like cars.com and edmunds.com, and you can visit local dealerships.

Another way to pin down a good estimate is to compare the used car lease with a lease on a new car of the same make and model. This will give you an overall picture of the differences between new and used car leases. Just like leasing a new car, a used car lease is more attractive when residual values depreciate the least. You will have a better chance of finding a bargain with a high-end, luxury vehicle that holds its value.

Your next step is to verify the initial mileage and the overall condition of the vehicle. The used vehicle that you choose should not have mileage that exceeds 12,000 miles per year. If you find a three-year-old care with 50,000 miles on the odometer, keep shopping. It's not your best choice for a used vehicle lease.

In addition to the car's mileage, check for signs of excessive use like worn seat fabric and a damaged interior, worn pedal pads and a dirty engine, all indicative of poor maintenance or an odometer roll-back. Even if the car is being sold certified, it's in your best interest to have it thoroughly inspected by a qualified and trustworthy mechanic.

Once you've leased a used vehicle, you'll need to insure it. Gap coverage is a type of insurance offered on new car leases, and designed to protect the driver against vehicle loss, damage and theft. This type of coverage is not usually offered on a used car lease, and your policy may cover only what your car is worth at the time of loss, rather than what's owed on the lease. As you can imagine, the difference can run into thousands of dollars.

Try to arrange your own gap insurance on the used car lease, for your own peace of mind. These arrangements can be made directly with the dealer or through an automobile insurance company.

If you've always wanted to drive a high-end car, but can't manage the high payments, consider a used car lease. It can be just what you need to get you cruising in high style.

Article Source: http://www.rightbiz.com

Michael Trusthold loves writing for a variety of well-known car and truck web sites, on used car search and free road trip planner issues.
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