Why in the world would someone want to lease a used car? Good question, but people and dealers are doing this today. Some dealerships along with automakers finance divisions are willing to lease used cars. Typically when the auto manufacturers financing arm leases a used car it is only for pre-owned factory certified vehicles. However there are independent dealers that offer used car leases. However these types of lease are usually for customers with credit problems.
Auto Manufacturer Used Car Leasing
Like I mentioned earlier some automakers offer used car leasing through their dealers, but only if the dealers agree to the practice and they offer vehicles that factory certified vehicles. Most dealers would rather not mess with used car leasing because they don’t want to mess with repair issues that arise more often on used cars. After years of research I have found that most people that inquire about leasing used cars are doing so because they thought it would be more appropriate when they have credit issues. In which case they would be better off purchasing a used vehicle and securing and auto loans through secondary auto lenders. If you can’t tell I am not a huge fan of leasing anything other than brand new vehicles through the auto manufacturers finance division for the best deal.
Independent Dealer Used Car Leasing
Used car leasing by independent car dealers is becoming more and more common today for people with credit problems. However in the automotive secondary credit market things are handled more like renting than traditional new car leasing. The point is that leasing a used car to consumers with poor credit histories make the repossession of a used lease vehicle quicker and easier. Unlike the more common new car leasing rules, regulations and laws that are handled by the captive finance division of the automaker repossession it takes much more time and effort as compared to getting a secondary credit used car lease repossessed. Independent car dealers that also do BHPH or buy here pay here automobile financing for people with bad credit typically use most used car leases. These dealers handle these types of car leases differently and the only one that wins is the dealer.
I have said over and over that leasing a car is not for everyone, but it’s even more impactful when we talk about whether or not you lease a used car. If you don’t have a credit problem and you can eek out a few more dollars a month you are probably better off leasing a new car because of the lower money factor, warranty and reliability.
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