When it comes to getting into a new vehicle you have one of two options. Purchasing/Financing or going with a shorter term option in leasing. Over the past few years leasing has become an extremely popular choice as it helps provide buyers with a new car every few years and ensures you’re in the latest and greatest vehicle.
Leasing isn’t typically common with used vehicles and is usually limited to a small number of specialty and luxury brands throughout the country. With some many luxury dealers selling leases there is a lot of opportunity for a used lease but what about options if you’re looking to get into a used Ford truck?
If you’re lucky enough to find a used car deal it might be the ideal option to consider depending on your current financial situation. With any lease there will always be some pros and cons to consider.
Is Leasing A Used Car Worth It?
The most obvious advantage or leasing a used car…the price. When you’re comparing lease options one of the biggest advantages to a lease over a finance deal is lower monthly payments and with used it’s possible that it may provide even lower monthly payments.
This is something you may want to consider if you have no credit or bad credit. A lender may be more open to providing options to you with a car that is depreciated as opposed to the expense of a new one.
Here are some of our top advantages to leasing a used vehicle (where applicable)
- Lower payments. With any used lease you’re only paying for the depreciation of the vehicle as you use it. Typically this means that you will have lower payments then you would should you finance a car loan.
- Lease and walk away. At the end of any lease agreement you have the option of giving the car back without any future payments OR you can purchase the vehicle at this point. If you’re building your credit and want a new vehicle a lease provides a short term solution for you to make payments, build/improve your credit and then consider your options at the end of your leasing term.
- Because you will likely have a lower payment it’s possible that you can get more vehicle for your money, depending on your monthly budget. If you can’t afford a new lease you may be able to find a suitable pre-owned lease on an older model on the same trim.
Of course with anything good comes some questions to arise should you go that route.
- Availability. Used leasing is often very rare among Canada’s dealers. Most often you will find availability with luxury brands but not as many options with those of the likes of Ford, GM, etc. While we don’t typically provide leasing on Used Vehicles here at Windsor Ford we do have options for it with our Certified Pre-Owned programs. Please contact us with any questions you have and we’ll be happy to answer.
- Termination Agreements and Fees. It’s important to understand the fees and agreements when leasing a vehicle…new or used. Going over your kilometer limit or trying to terminate early may result in fees to opt out of your contract. Before you sign any lease agreement ensure you are ready to commit for the full term.
- No equity. Leasing a vehicle means you won’t own the car at the end of the deal, despite making all those payments. You may get a chance at the end of term to purchase.
Is There Leasing On Certified Pre-Owned Vehicles?
At Windsor Ford we’re happy to provide our incredible Certified pre-owned vehicles. Not only do these vehicles come with great maintenance packages and our full comprehensive 173-point inspection package, but they offer great peace of mind on top of qualifying for potential used leasing opportunities.
With Ford of Canada you can also get access to (typically) lower interest rates. At our dealership you can currently get as low as 1.9% on financing for purchasing a new certified pre-owned vehicle.
CPO leases are rare and typically require a good credit rating to qualify so if you are serious about leasing a used vehicle we highly recommend contacting us to check our availability and rates.
How Does Leasing Work?
When it comes to leasing a used vehicle in Canada the process is similar to leasing a new one. The first step is determining what the estimated value will be at the end of the lease. The value is broken down between the leased portion and the residual value (what the value will be at the end of the lease).
From there you’ll likely be required to secure a downpayment (or $0) and submit a credit application to see if you will qualify for leasing. The interest rate and terms of your agreement will likely depend on the details of your credit, income and any other miscellaneous factors affecting your income.
After you’ve made it to the end of your term (typically a 2 to 3 year commitment) you’ll have the option to return the car to our dealership or an option to pay the residual value you agreed upon in the first step to keep your car.
What Can I Do If I Have Bad Credit?
Any vehicle loan typically requires a good credit score to secure a lease, but you may be able to secure it through a co-signer or our subprime options at our dealership. You may be forced to pay weekly or bi-weekly to offset risk with poor credit. If leasing isn’t an option to help improve your credit you may want to look at used car financing on an older make/model so you can pay off your loan quicker to help improve your credit score.
With Windsor Ford we work a wide variety of lenders for good, poor and subprime credit to help you not only find a vehicle but also rebuild your credit.
Should I Lease Or Finance?
Truth be told, when it comes to used vehicles you may not have much of a choice other than to finance your vehicle. Used leases are incredibly hard to come by and while you may not want the commitment of a longer term with financing it may be more affordable than you think. Also you’ll own your vehicle at the end of the term..with no payments!
If you’re considering a used vehicle or have found one on our website please don’t hesitate to reach out and we’ll be happy to help provide you with the right advice while not pressuring you into a deal you don’t like.
Looking For Used Vehicles Near You?
If you’ve settled on a used vehicle and would prefer the comfort of finding a lower monthly payment then Windsor Ford is the dealer for you! Come down and visit our dealership, we’ve got a great selection of used vehicles, certified pre-owned and if the price is right we’ve always got some great rebates and incentives happening monthly on Ford vehicles.
Have questions about used leasing or financing? Don’t hesitate to reach out to us or text us at 780-532-9550 and we’ll be happy to help you find your next pre-owned vehicle.