New Vs Used: Which Car Should You Lease?
Updated October 6, 2013
Leasing a car can be a great way to lower the cost of driving, as well as taking advantage of the fact that you do not have to pay out high amounts of up-front cash to get on the road. Having established that leasing out a car is the perfect solution for you or your business, the next decision to make is whether you are looking to lease out a new or used one. There are definitely plus points to both options, so it is worth considering the choice.
Used Car Leasing
As with purchasing, the main advantage of leasing a used car instead of a brand new one is the price. If you are looking to get on the road for as little cost as possible, leasing a used car is likely to be your best choice. Very often, used car leases are available on vehicles that have previously been leased out, meaning that they are still in extremely good condition and effectively as good as new. Depending on the lease details, you may be able to get a shorter lease period than you would for a brand new car, resulting in lower charges. Once a car has been driven on the road, it dramatically depreciates in value, which means that ‘nearly new’ vehicles can be significantly cheaper to lease out than brand new ones.
It can be difficult to work out the exact worth of a used car lease as there are many factors affecting the deal. There are some points to consider when working out a fair price on a used car lease:
Mileage -The age of the car is not the only gauge of what kind of condition it is in, as the mileage will give a big indication. A two-year-old vehicle that has been driven up and down the country non-stop will have a lot more wear and tear on it than a three-year-old car that has only been used for nipping around town. This should be taken into consideration when the lease price is agreed. As a general rule, 15,000 miles a year is average usage.
Repair costs – Used cars do not usually come with a warranty protecting you against the cost of repairs. This means that it is your responsibility as soon as you take it away. This can drive the price down considerably on well-used vehicles as the chance of required repair work is increased. Brand new vehicles are likely to be covered by a manufacturer’s warranty.
New Car Leasing
Although the starting prices for new car leases are higher than those for used cars, it can still end up being the most cost-effective option if you manage to get the right deal. Dealerships get incentives to lease out their newest models, so you may be able to grab a real bargain and be driving around in a brand new vehicle for just a fraction more than a used car. Getting deals like this may involve some tough negotiations to pull it off, but it is well worth the effort if you are successful. The obvious advantage of opting for a new car lease is that you get to drive around in a brand new vehicle which will be under warranty, and is less likely to have any problems.
Christian Goodloe has extensive experience as a business consultant. He is also an avid blogger where he likes sharing his knowledge on business costs. His articles mainly appear on business blogs. Find out more used car leasing UK options.
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