Value has become important, especially more so during the last couple years of our uncertain economy. Car shoppers are spending their hard earned money a lot more carefully. For most consumers, it is no longer about making social statement but about affordability. This has pushed more consumers into buying used vehicles. There are several options when researching used vehicles. Private Party cars, Trade-in cars, Repossessed cars, Fleet Vehicles, Factory Program Cars, Corporate Fleet cars and Off Lease One Owner Cars. Out of all these options, we believe that Off Lease One Owner cars provide the most value for the money. Here’s why:
Single driver. Used cars with only one previous owner tend to be consistently driven and better maintained. Studies have shown that consumers are willing to pay up to 15% more for a Carfax 1-Owner car.
The previous owner returns a perfectly good car only because the lease term is up and not because something went wrong or something is about to go wrong or that the car just came back from a body shop after an accident.
Most lease Lessees are contractually obligated to maintain their car by the book during the lease term. If they do not, they could be charged a fee at lease turn-in. From what we see at factory auctions, most of the lease returns are indeed very well maintained by their previous owner.
Since most lease terms are 2-4 years, Off Lease cars tend to be fairly new, usually 3 years old with average to below average miles on the odometer.
Most Off Lease cars have plenty of remaining factory warranties. These can be extended directly with the manufacturer’s extended warranty programs. Buying a brand new car solely for the sake of warranty is no longer valid. Years ago, if you wanted a factory warranty, you had to buy new. Not anymore.
Equipment & Options
When leasing a brand new car, the lease payment differential between a base model and a fully equipped model isn’t huge. Therefore leased cars typically come loaded with equipment & options. These options and creature comforts make them more desirable to own and when selling it down to the road.
Yes, new or used, a car is a depreciating asset! But if you can buy it at a substantial discount, you’ll save thousands when comparing depreciation difference between new and used. Most cars, even high resale value brands such as Honda & Acura typically lose 20-25% value just in the first 12-18 months of the car’s life. Let someone else take this initial loss in value.
When a customer returns their leased vehicles, they are independently inspected by the manufacturer’s financial division prior to resale at wholesale dealer auctions. Any major issue is disclosed to the purchasing dealer. While a dealer is not required to disclose this information to the customer, a reputable dealer won’t even bother taking a second look at such cars.
Today’s cars are lot more reliable. The quality & durability of a well-maintained 3-year old car is much better than a brand new car from 10 years ago. They also provide better fuel economy. You can always add an extended warranty if you wish to further hedge any future potential issue. Even after adding the cost of an extended warranty you’re still thousands less in total cost of ownership.
When you lease a brand new car, it is the financing & leasing company that actually has ownership of the car. For example, Ford Motor Credit, Toyota Financial Services, etc. When the lease term is up, these companies wholesale the car to the highest bidder at dealer auctions. Highest bidder gets the car, regardless of the size and age of the dealership. You can compare your options at both large and small dealerships and you might discover those beautiful gems, hidden in a small warehouse, for thousands less.
Yes, a car is about making a statement but it is also about making your monthly payments. Research your options and choose wisely. An Off Lease One Owner car can be a much better value than just any used car. It can even be your viable new car alternative!
With any used car purchase, sound shopping principles should always be followed. Check vehicle history reports, such as Carfax or Autocheck. Any reputable dealer should provide this to you. Research dealers with good customer feedback and testimonials and that provide the best used car prices upfront without all the back and forth hassles.
At Dash Motorworks in Houston Texas, they take the time to create walk-around videos for many of their cars, trucks and SUV’s. Check out their Video Collection. There you will find car videos and real people video reviews.