You are used to the idea of leasing a brand new automobile—as an alternative of shopping for outright, the fee is damaged up into smaller funds over an agreed rental interval—however are you able to lease an previous automobile? The excellent news is which you could, and it might be an possibility price contemplating.
You may say, second-hand automobile rental provides you one of the best of each worlds. Your month-to-month funds are smaller when you’ve leased a brand new one, however you continue to get a more recent mannequin, which is cheaper to run and has higher know-how than when you purchased an older automobile outright.
However how does a automobile lease truly work? What are the benefits and what are the disadvantages? Preserve studying to search out out.
Is leasing a second hand automobile higher than shopping for?
In some instances, whether or not leasing a second-hand automobile is best than shopping for is as much as you.
It is smart when you can afford to purchase a brand new automobile. There is no want to fret about month-to-month funds, and it may be cheaper since you’re not paying curiosity.
All proper and dandy when you’re able to fork the money, however what when you’re not? So, leasing a second-hand automobile may be of nice profit. You do not have to shell out a pile of cash to get your fingers on a used automobile within the showroom. It could additionally imply which you could purchase that dream automobile that you simply beforehand described as too costly.
How does used automobile leasing work?
Primarily, used automobile leasing works the identical approach as simply leasing a brand new automobile – plot twist – the automobile in query is second-hand.
As an alternative of paying upfront, you pay an preliminary fee, adopted by smaller month-to-month installments over an agreed interval. It often lasts between 24 and 60 months.
You may have a set annual mileage restrict—with a mile-by-mile penalty payment when you exceed it—and, in contrast to the PCP finance settlement, there is no possibility to purchase the automobile outright with a ultimate balloon fee. You pay your dues, hand over the automobile and transfer on to the subsequent one.
What’s the oldest automobile you’ll be able to lease?
No determine is ready in stone, however as a basic rule, you are more likely to lease a used automobile from a franchise supplier—so it in all probability will not be greater than three years previous.
The benefit is that the automobile could have been put by the producer’s approved-use-use plan, so it will likely be topic to a multi-point examine and include a guaranty.
Many producers embody breakdown and MoT covers (in case your automobile wants work to move, pay in your first MoT).
Is renting a second hand automobile cheaper than shopping for a second hand automobile?
Perhaps not. Leasing a automobile means paying curiosity that you wouldn’t should pay when you had purchased the used automobile outright together with your money. Plus, you miss out on financial savings from shopping for a automobile privately.
Nevertheless, there could also be exceptions. As an instance you purchase a automobile that’s six months previous and promote it after 12 months, chances are high that the price of depreciation will far exceed any financial savings you make on curiosity.
What are the advantages of leasing a second hand automobile?
The primary benefit of leasing a second-hand automobile is that you simply get it by paying a number of, comparatively small month-to-month funds — slightly than paying all the lot upfront.
It could be sensible to take action. As an alternative of getting your fingers on a automobile that’s on the fallacious aspect of the rope, vulnerable to breakage, in addition to being costly to tax and gas, you may get a a lot newer mannequin that might be extra dependable and cheaper to drive. , with out worrying about sudden bills. It also needs to have a guaranty and you may embody the servicing value within the month-to-month fee.
However since you’re nonetheless shopping for second-hand, you make a big financial savings when leasing the identical automobile model — successfully, you are profiting from the massive depreciation that the majority automobiles would have suffered of their early years. Is. You may name it a win-win.
What are the disadvantages of renting a second hand automobile?
One of many predominant disadvantages of leasing a second-hand automobile is that you simply will not truly personal it, which may be annoying for numerous causes.
As an instance you purchase a brand new automobile on a PCP finance deal, while you attain the top of the settlement, you may have the choice of constructing the ultimate balloon fee and proudly owning the automobile – enticing since you’ll know how you can correctly restore the automobile. Care has been taken. It is a much less nerve-racking expertise than shopping for a automobile you did not know has been cherished.
However, when you purchase a reasonably previous automobile, drive it for a couple of years, then resolve to switch it for one thing else, you may get it changed in your substitute, providing you with a helpful piece of money. You’ll get a bunch. In any other case miss it.
Finally, shopping for a second automobile outright additionally provides you extra flexibility – you’ll be able to do away with it everytime you need, at no additional cost. And you are not sure by an annual mileage restrict, which might show pricey in case your circumstances change and also you’re all of a sudden driving so much.
Need to lease a brand new automobile as an alternative? Take a look at our listing of one of the best leasing offers…