Used Car Leasing is back and it makes sense for many.
Car buyers in today’s used car market have three options: pay cash, finance for a long term low payment or opt for a Used Car lease.
Used car leases have been around for many years, however, the return is based on growing trade-in inventory, low interest rates and high demand for low payments. In addition to these factors, consider the effect of depreciation caused by ever changing automotive technology.
New technology dates used cars.
Thanks to autonomous driving, extensive range electric plug-ins and the latest in cell phone integration, rapid advancements in these areas are speeding our current daily drivers towards obsolescence before the loans are paid off.
Given longer factory warranties on many models, the used car lease could have remaining factory warranty or additional service protection built into the contract. This provides buyers with another choice when a new car lease on the same car is out of wallet-reach. Many buyers opting for used car leases are luxury car shoppers, students, military and those in need of short-term transportation beyond ride-sharing.
Used Car leases offer lower payment and shorter term.
While U.S. Bank and some auto manufacturers offer a used car lease options on certified cars of their brand, Ally Financial offers car buyers an extensive list of makes and models, certified or not.
The Ally Financial used lease program focus is on cars of 75,000 miles or less and up to four years old. They include GAP protection in their leases, which is very important! AWD and 4wd trucks, SUV’s and crossover vehicles are among some of the best lease choices. A recent search of pre-owned vehicles offered by dealerships around the country found a 2017 Hyundai Elantra Limited for $213.00 a month at United Nissan. See Ally vehicle guide below:
Not every model or brand is currently available, which could be a good indication of the long term ownership prospects if you were considering a buy, and some new car lease incentives outshine the used alternative. However, it pays to consider all your options by weighing your short and long term vehicle needs, budget and down payment.
As with new car leasing, clients determine the number of miles needed per year, down payment and how many months for the term options available. Individual credit scores will determine the actual payment, so when considering a used car lease speak to your dealer for more details.
Vehicles eligible for pre-owned leasing with Ally.
- Acura – ILX, MDX, RDX, TSX and ZDX
- Audi – A3, A4, A5 and Q5
- BMW – 3 Series, 5 Series and X3
- Buick Enclave
- Cadillac – CTS, Escalade and SRX
- Chevrolet – Colorado, Corvette, Cruze, Equinox, Malibu, Silverado, Suburban, Tahoe and Traverse
- Dodge – Challenger and Charger
- Fiat 500
- Ford – Edge, Escape, Explorer, F-150, Focus and Fusion
- GMC – Acadia, Canyon, Sierra and Yukon
- Honda – Accord, Civic, CRV, Fit, Odyssey and Pilot
- Hyundai – Accent, Elantra, Genesis, Sonata and Veloster
- Jeep – Cherokee, Grand Cherokee, Patriot and Wrangler
- Kia – Optima, Rio and Sportage
- Land Rover – Discovery Sport, LR4 and Range Rover Evoque
- Lincoln – MKX and Navigator
- Lexus – CT200h, GS350 and RX350
- Maserati – Ghibli, Gran Turismo and Quattroporte
- Mazda 3
- Mercedes C Class
- Mitsubishi – Outlander and Outlander Sport
- Nissan – Altima, Frontier, Maxima and Rogue
- RAM 1500
- Subaru – Crosstrek, Forester, Legacy and Outback
- Toyota – 4Runner, Avalon, Camry, Corolla, Highlander, Prius, Prius C, RAV4, Sienna, Tacoma and Tundra
- Volkswagen – Golf and GTI
- Vehicle list as of Nov. 1st.
Sarah Lee Marks is MyCarlady. She has over 28+ years of experience.
She writes about cars, and is a staunch consumer advocate on car related subjects.
She teaches Driver’s Education, Auto Safety and Car care.
MyCarlady offers free car buying advice, and private, auto-related services to help you maintain your personal or commercial vehicles.