Leasing a car can be a great way to get behind the wheel of a top quality vehicle that meets your needs on a modest budget. To keep your monthly payments as low as possible, you can even lease a used car. Here at Rydell Outlet Center in Grand Forks, we can offer you competitive rates for used car leases. Here’s a look at some of the benefits of a used car lease and some tips to secure a good lease agreement.
Leasing a Used Car May Save You Money
One of the most attractive things about leasing a used car is that you can save money. The reason for this is that your lease payments are calculated based on how much the value of the car depreciates during the period of your lease. Depreciation takes place particularly rapidly with new cars. For example, cars can depreciate in value from anywhere between 20 percent and 40 percent during their first year of use alone.
Depreciation occurs more slowly in used vehicles, which leaves you typically having to cover a much lower overall cost. The amount you save compared to leasing a new vehicle will depend on the make, model, and age of the car you choose.
You may notice that the interest rate you pay on a used vehicle is higher than what it would be for a new car lease. However, this cost difference is generally much less than the amount of savings you make. This is because the interest rate is only a fraction of your lease payment, while the bulk of it is made up of the cost of the vehicle’s depreciation.
It’s also typically cheaper to insure a used car than a new one. This means you may be able to reduce your car insurance payments by leasing used.
You Can Opt for a Higher Quality Vehicle
Due to the fact that you’re saving money, you may be able to choose a higher-end used vehicle than you would if you were leasing a car fresh from the manufacturer. This may mean, for instance, that you can opt for a larger SUV that’s more suited to your family’s needs, or pick a higher performance sports vehicle than you had initially planned.
If you’re lucky enough to find your dream pre-owned car to lease, you’ll still have the option to buy it for an affordable price when the lease comes to an end. Alternatively, you just need to return it to the dealership in good condition once the period of your lease expires.
You Can Trust the Condition of Our Used Cars
Used vehicles we offer for lease at the Rydell Outlet Center in Grand Forks are reliable and in good condition. Used vehicles offered for lease are often certified pre-owned cars and SUVs. This means that we know the ownership history and maintenance records of each vehicle. Used vehicles are also generally only eligible to be leased if they have driven less than 48,000 miles. In addition, our team of auto service technicians performs a thorough inspection of each vehicle to ensure its components are in good working order before leasing. If problems are detected, they carry out all necessary repairs.
If the used vehicle you choose is still under the manufacturer’s warranty, you’ll continue to enjoy this protection during your lease. If the warranty has expired or it expires during your lease, you can purchase a servicing warranty to ensure that any repairs your vehicle requires can be taken care of by our service team. We strongly recommend that you do this if you’re leasing a vehicle from us. If you don’t have extra coverage after the warranty has expired, you could find yourself having to pay the full repair costs if something goes wrong.
Deciding Whether Leasing Is Right for You
Before you go ahead and agree to a lease on a used car, there are several factors to consider. The first thing is the type of car. Since not all makes and models depreciate at the same speed, leasing may not be the most affordable option for you. For example, luxury SUVs and sports cars typically retain their value well into their middle age. These types of vehicles are therefore less likely to depreciate in value significantly during your lease, which will in turn reduce the total payment you need to make.
By contrast, if you want a vehicle that depreciates rapidly after its second or third year of use, you may want to consider buying it instead, since you could get a competitive price for it on the market.
If you’re unsure what the typical market value for a particular vehicle is, you’ll be able to find many price comparison services online. Making use of these services will help you determine whether leasing or buying is your best option.
You should also carefully examine the terms of your lease before agreeing to it. One term to pay special attention to is the mileage limit. While you can drive a car as much as you like when you buy it outright, lease agreements typically include a yearly mileage limit. If you go over the limit, you can be charged extra. If you know in advance that you’ll need to drive more than the specified limit, consider buying a used car. However, if you’re happy with the mileage limit, leasing could prove to be a cheaper option for you.
Now that you know how leasing a used car works, and what the pros and cons are, you hopefully feel better placed to decide whether our used vehicle leasing offers are right for you. If you have more questions or you’d like to get the leasing process started, we’d be delighted to hear from you. Contact us here the Rydell Outlet Center. Remember that if you’ve decided against leasing, we can still help. We have great deals on buying used cars outright that may interest you. Check out our online inventory to learn more.
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