Lots of people think of leasing as a way to get a new car with all the bells and whistles for less, and they’re right, but you don’t have to lease a car to benefit from the leasing market.
For those who don’t know, when you lease a car you can get a new model made to order, but you’re technically renting the car from the lease company—you never own it and when the contract period expires it reverts to them, though you may have the option to buy it like you would with a hire purchase or rent-to-own agreement.
It’s cheaper than getting a car loan, mostly because of what happens after the initial contract is up. The leasing company can’t lease the car out again—getting a new vehicle is a big part of the draw, so a car that’s two, three or even four years old won’t cut it for their customer base.
That’s why they sell the cars directly onto companies like Motorpoint that deal in used vehicles.
You can save money on either end of this process. Leasing companies will charge a lot less for optional extras than dealerships do, because they have ‘residual value’, meaning they add to the car’s resale value.
But the real savings can be made on the back end of this arrangement; buying an ex-lease car used is the best way to get more for less.
Because the leasing company will have made back some of the value of the car and all its extras on the original lease you’ll also be paying less than you might when you’re buying a car whose last user owned it outright.
There are other advantages too; car leases tend to be a lot shorter than the average amount of time someone might own a car, so going ex-lease is a good way to find nearly new vehicles with a low mileage.
Drivers are often more careful in leased cars specifically because they know the car is not theirs and because lease agreements usually specify that repairs need to be done to a certain standard, so you know the car will be in good nick with no nasty surprises.
Buying an ex-lease car used is the way to go for guaranteed quality at a low price.