Pros And Cons Of Used Car Leasing

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Leasing deals on new cars can be had on used cars too. Soaring new car prices mean sticker shock is a common occurrence for car shoppers. One way to lessen the blow is to lease a vehicle. Indeed, Experian Automotive found that 28.9 percent of all new vehicle models were leased in the fourth quarter of 2015. That’s up nearly 10 points in just over five years. Leasing lowers the average monthly payment, one of the most important concerns for new car shoppers. Instead of paying $493 on average for a new car, lessees pay $411 per month for theirs. That’s $82 per month or $984 per year saved, or nearly $3,000 across the average 36-month lease term. Used Car Leasing Used car shoppers are also looking at ways to reduce their costs. Although representing a relatively small segment of the market, used car leasing is available. Leasing a used car provides the usual advantages of leasing — low monthly payments and an easy way to return the car and walk away. …show more content…

CPOs are popular with consumers as these models have passed dealer inspection, are backed by the manufacturer, and include the balance of the warranty, and sometimes an extended warranty. CPOs cost consumers more, but that’s a trade-off many are willing to accept. This year, returning leases will increase 20 percent over last year and will continue to rise for at least the next two years. That presents a problem for dealers as bloated inventories are harder to move. To combat the trend, some manufacturers including Toyota and BMW as well as Ally Financial are pushing used and certified leasing in anticipation of the increased lease returns reports Automotive News. Toyota’s arrangement covers Toyota, Scion, and Lexus brand vehicles. CPO Toyota and Scion used car leasing will be limited to vehicles no older than three model years and 65,000 miles. Lexus CPO leave vehicles will extend out to four years, but be limited to 60,000