03 May 2015

Tips, Traps And Tactics When You Lease A Used Car

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Tips, Traps And Tactics When You Lease A Used Car

When you decide to buy a used car, you should understand that there must be some allowances made. The car WILL have some imperfections in it and about it. That almost goes without saying. When you decide to lease a used car, you'd better do your homework.

First of all, it is very attractive to lease a used luxury car or truck. You'll pay only a percentage of what you'd normally pay to get it. Your research should focus on two aspects: initial market value and the residual value of the used car. Quite difficult, because there's no factory set sticker on used cars, and the residual value is very subjective as a current retail value.

Value

To get an idea of the used car's value, look up different sources, such as:
-local dealerships
-internet car evaluators (, )
-compare the lease to a new car's lease ( same make and model)
After doing this, you should have a good idea of whether you should go for a used or new car. Like leasing a new car, leasing a used car is more attractive when residual values depreciate the least. High-end luxury cars retain their values better as used cars, so you'll find a better bargain in them most of the time.

Mileage and Condition

Check the initial mileage and overall condition of the used car. If the car has more than 12,000 miles a year,it's highly unlkely to be a good durable used car lease. Look for excessive wear and tear:
-worn seats/fabric
-worn pedal pads
-dirty engine (odometer may have been rolled back!)
Ask your dealer for a manufacturer-sponsored certification program or have your car certified by a qualified mechanic or inspection service, if it hasn't been.

Gotta Have GAP Insurance

While GAP insurance is commonly offered with new car leases, you should try to get GAP coverage on your used car lease agreement. Usually auto insurance policies only cover car value at the time of loss, not what is owed on the lease. This could translate into thousands of dollars. For peace of mind, do not enter into any used car lease without GAP coverage. Arrange it separately with either the lease dealer or your auto insurance company.
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